Growth hacking panel hosted by Kellogg MBA
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Growth Hacking Roadmap Maximize the Growth of Your Most Valuable Customers Kellogg School of Management Mark Andersen Prasanna Vinjamuri Lauren Anderson June 26, 2014
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Slides that go with the Growth Hacking Roadmap infographic, which summarizes how startups can maximize the growth of their most valuable customers. It also summarizes the actionable analytics growth hackers should be using including cohort analysis, user testing and key performance indicators. Panel presentation by Mark Andersen, Prasanna Vinjamuri and Lauren Anderson.
Transcript of Growth hacking panel hosted by Kellogg MBA
Growth Hacking RoadmapMaximize the Growth of Your Most Valuable Customers
Kellogg School of Management
Mark Andersen
Prasanna Vinjamuri
Lauren Anderson
June 26, 2014
Create Your Business
Model
Product / Market Fit
Most Valuable Customers
Early Behavior of Most Valuable
Customers Aha! Moment
Virality Optimize
Content Funnel
Content Marketing & Social Media
User & Social Networks / App Stores
Online / Mobile Advertising
Growth Hacking Roadmap
Create your business modelBusiness Model Canvas
Step 1
What customer segments does your organization serve?
Establish and maintain customer relationships
What are the key value propositions to customers in each segment?
12
Communication, Delivery, Sales Channels
How you do it
Assets to create and deliver value
Activities outside your organization
Convert customer value to revenueYour cost structure
Your Business Model
5
4
36
78
9
Create your business modelBusiness Model Canvas
Step 1
Product / Market Fit"How to lose $170 million in VC funding"
• AllAdvantage after 18 months: 13 million members, Top 20 site, $170 million from VCs, 3 weeks from IPO
• "Biggest whale on the dotcom beach"
• Why did it fail? Too much focus on acquisition, never achieved p/m fit
Step 2
Product / Market Fit
Step 2
• Circle of Friends launched on Facebook--returned $ to the VCs
• Completed sale within 3 years to Sugar Inc
Most Valuable CustomersUsing Lifetime Net Value Across Acquisition Channels
Step 3
0
25
50
75
100
Email Blog Retarg SEO Blog FB eBooks SEM Affiliate
Most Valuable Customers
Step 3
HireRight
Early Behavior of Most Valuable Customers
Location Labs
Step 4
Early Behavior Persons who check for location at least once within the first week after signup have LTV > 4x those who don’t. !Action Reminder email to check location for those who hadn’t done so yet. !Results Significant increase in LTV.
Aha! MomentWhatsApp's 10 step Onboarding process + 16 minutes to my Aha! Moment
Step 5
App Store download Permission to get contacts
Permission to send push notifications Enter phone number
Connecting my number Receive the verification code and enter it
Validate the code Prompted to fill out my profile.
Approve the Facebook permission. Automatically shows favorites
ViralityLocation Labs
Step 6
DriveSmart: "hey, I'm driving, DriveSmart is keeping me safe..."
Optimize Conversion FunnelYour fastest way to increase Lifetime Net Value
• Start by improving existing opportunities, not new traffic
• Learn about people who don't visit key conversion pages
• Find the points where people abandon your site: ask them via exit survey: "Is there something preventing you from checking out?"
• Test & measure pages, flows & cohorts
• Testing speed is critical. A/B only tells us "what." We have to do user testing to figure out "why."
Step 7
Optimize Conversion FunnelTools to increase conversion rates, retention & LTV
• Analytics: Google Analytics, KISSMetrics, Mixpanel
• A/B testing tools: Optimizely, Visual Website Optimizer
• Testing a lot of landing pages: Unbounce
• Identify the "why" in friction points: Qualaroo, UserTesting.com
Step 7
Content Marketing & Social Media
Online petitions: CREDO Mobile's 275,000 Likes on FB
Step 8
!
• Clif Bar & Mint: 170,000 Likes
Content Marketing & Social Media
Blogs: Salesforce, Whole Foods. Webinars: KISSMetrics, Qualaroo
Step 8
Content Marketing & Social Media
Video content that drives results
Step 8
!
• Wren's "First Kiss" (clothing label in LA): 80 million views, sales in their online store increased13,600% vs week before First Kiss was released: youtube.com/watch?v=IpbDHxCV29A
• Red Bull's jump from space: 35 million views, youtube.com/watch?v=FHtvDA0W34I
• GoPro's "Pelican learns to fly": 3 million views: youtube.com/watch?v=_YEyzvtMx3s
User & Social Networks / App Stores
API integrations enable invitations, notifications & sharing of activity
• B2B open APIs: LinkedIn, AppExchange, Yammer
Step 9
Online / Mobile AdvertisingFind the right channels for your Most Valuable Customers
Step 10Total
Customer Value
source: marketo.com
Actionable Analytics & ResearchNew Customer Cohort
April May June July
Month of Acquisition [2013]
0K
2K
4K
6K
8K
Count of N
ew
Custo
mers
0
1
2
3
4
5
Avera
ge N
um
ber
of O
rders
$0.00
$20.00
$40.00
$60.00
$80.00
$100.00
Avera
ge O
rder
Siz
e
3,978
6,962
8,951
4,973
55
4
1
$91.50
$102.17
$87.50
$105.00
New Customer Cohort
The trends of Count of New Customers, Average Number of Orders and Average Order Size for Acquisition Month.
Actionable Analytics & ResearchKPIs
4/7/2014 4/14/2014
First Time Visitors
Total Visitors
Conversion Rate
% New Customers
Retention Rate
Num Orders
Average Order Size
Total Sales $20,000
$125
160
3.35%
18.06%
3.92%
3,955
1,986
$26,040
$210
124
2.89%
15.32%
3.01%
4,123
1,822
Apr 2 Apr 4 Apr 6 Apr 8 Apr 10 Apr 12 Apr 14
14 Day Trend
SummaryIf you takeaway nothing else...
• Product/market fit is paramount
• Don't accelerate your acquisition spend until you've achieved p/m fit, optimized your funnel & positive Lifetime Net Value
• Setup your analytics asap
• Cohorting & most valuable customers critical
• Common mistake is focusing too much on acquisition & virality and not enough on retention
Contact info@MarkAndersen
www.linkedin.com/in/markandersen
www.linkedin.com/pub/lauren-anderson/4/bba544Lauren Anderson
@pvinjamuriPrasanna Vinjamuri
