Think Like A growth
hacker

What is a growth hacker
?

Sean Ellis’ Definition http://startup-marketing.com/" "
A growth hacker is a person whose true north is growth. Everything they do is scrutinized by its potential impact on scalable growth. Is positioning important? Only if a case can be made that it is important for driving sustainable growth (FWIW, a case can generally be made)."

Growth Hacker is the new
VP of Marketing by Andrew Chen" http://andrewchenblog.com/2012/04/27/how-to-be-a-growth-hacker-an- airbnbcraigslist-case-study/ " Growth hackers are a hybrid of marketer and coder, one who looks at the traditional question of “How do I get customers for my product?” and answers with A/B tests, landing pages, viral factor, email deliverability, and Open Graph. On top of this, they layer the discipline of direct marketing, with its emphasis on quantitative measurement, scenario modeling via spreadsheets, and a lot of database queries. If a startup is pre-product/market fit, growth hackers can make sure virality is embedded at the core of a product. After product/market fit, they can help run up the score on what’s already working." "

“The fastest way to spread
your product is by distributing it on a platform using APIs, not MBAs.” - Andrew Chen"

Viral Growth
Sustainable Growth

Viral Coefficient Viral Coefficient
= # of Invites * Conversion % 1 = 10 * 10% " " " "

Simple Viral Growth K=1 Lessons
Learned – Viral Marke0ng by David Skok h8p://www.forentrepreneurs.com/lessons-­‐learnt-­‐viral-­‐marke0ng/

Simple Viral Growth K =
2 Lessons Learned – Viral Marke0ng by David Skok h8p://www.forentrepreneurs.com/lessons-­‐learnt-­‐viral-­‐marke0ng/

Viral Cycle Time • Lessons
Learned – Viral Marke0ng by David Skok • h8p://www.forentrepreneurs.com/lessons-­‐ learnt-­‐viral-­‐marke0ng/

If Viral Coefficient < 1
NOT True Viral Growth

If Viral Coefficient < 1
YOU Must retain active users

Analytics • Daily Active Users • Monthly
Active Users

Sustainability

Viral Loop

Viral Growth = Customers are
Free Viral Loop = Customers at a discount

The 4 Ways Customers Drive
Sustainable Growth 1. Word of Mouth 2. A Side Effect of Using the Product 3. Paid Advertising 4. Repeat Use

1. Word of Mouth –
When people love your product, they’ll tell other people about it. Great word of mouth is oIen the Holy Grail of adver0sing. It’s cheap, incredibly effec0ve, but also difficult to build deliberately.

why people share The following
is roughly adapted from Dr. Robert Cialdini’s “6 Principles of Persuasion” Prestige -­‐ I will be viewed as important because I am associated with an important brand. Authority -­‐ people will look up to me because I know about things first. Likable -­‐ people will like me because I share things that make their life be8er.

Consistency -­‐ I liked it
before so I need to con0nue to like it or I will be in conflict with myself. Social Proof -­‐ Everyone else likes it, so I do too. (Social proof) Scarcity -­‐ Purchase if quan00es are perceived to be scarce Influence: The Psychology of Persuasion (Collins Business Essen9als) by Robert B. Cialdini h8p://www.squeezedbooks.com/ar0cles/influence-­‐the-­‐psychology-­‐of-­‐persuasion-­‐(collins-­‐business-­‐essen0als).html

Social Design https://developers.facebook.com/socialdesign/ Social
Design is a way of thinking about product design that puts social experiences at the core. Create these social experiences with the features available on Facebook Pla_orm.

2. A Side Effect of
Using the Product – Many products adver0se themselves. iPhones, Coach purses, and Gmail are great examples. Simply by using a product, a customer adver0ses your product to people around them.

h8ps://developers.facebook.com/docs/opengraph/
h8ps://developers.facebook.com/docs/bestprac0ces/

3. Paid Advertising – This
is what most businesses rely on. As long as you’re able to keep the cost of adver0sing below your marginal revenue from the campaign, you’ll do just fine. Businesses run into problems when they don’t keep adver0sing costs under control. To help you do this, make sure you’ve built a system that can track the effec0veness of the ads (Google Analy0cs, coupon codes, etc).

4. Repeat Use – Many
products need to be bought repeatedly in order to con0nue to use them. Magazine subscrip0ons, supplements, Ne_lix, and web hos0ng are all examples of this. When you have a product that requires repeated purchases, you only have to obtain a small number of new customers to keep growing.

Repeat Use • Be Awesome
• Invested in the product Facebook, LinkedIn, Dating Sites, Luminosity, Pandora" • Reminder/Re-engage Social Media, Email Marketing, Push Notification"

Think Like A growth
hacker • Always think about growth • Look at all communication platforms as a tool • Learn from others (ventures and disciplines)

TimHomuth@gmail.com
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