Unlocking Growth: Building a sustainable growth engine with the new rules of marketing.

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Unlocking Growth Building a sustainable growth engine with the new rules of marketing.

description

As Marc Andreessen says, startups fail for two primary reasons: either they try to grow when they're not ready to, or they're not aggressive enough when they're finally to grow. In this presentation Morgan Brown walks through the Startup Pyramid framework to show how startups can gain traction and drive sustainable growth.

Transcript of Unlocking Growth: Building a sustainable growth engine with the new rules of marketing.

Page 1: Unlocking Growth: Building a sustainable growth engine with the new rules of marketing.

Unlocking Growth Building a sustainable growth engine with the new rules of marketing.

Page 2: Unlocking Growth: Building a sustainable growth engine with the new rules of marketing.

“Most startups don’t fail at building a product. They fail at acquiring customers.”

– Gabriel Weinberg

Page 3: Unlocking Growth: Building a sustainable growth engine with the new rules of marketing.

Startup Growth Pyramid

Growth

Stacking the Odds

Product/Market Fit

Source: Sean Ellis

Page 4: Unlocking Growth: Building a sustainable growth engine with the new rules of marketing.

Growth

Stacking the Odds

Product/Market Fit

Source: Sean Ellis

Page 5: Unlocking Growth: Building a sustainable growth engine with the new rules of marketing.

Get to Product Market Fit First

Page 6: Unlocking Growth: Building a sustainable growth engine with the new rules of marketing.

What is Product/Market Fit? A large group wants/needs your product – it’s a ‘must have’.

Page 7: Unlocking Growth: Building a sustainable growth engine with the new rules of marketing.

“Focus obsessively on getting to product/market fit.”

– Mark Andreessen

Page 8: Unlocking Growth: Building a sustainable growth engine with the new rules of marketing.

Do you have PMF? Ask “How would you feel if you could no longer use the product?”

Page 9: Unlocking Growth: Building a sustainable growth engine with the new rules of marketing.

Source: Sean Ellis

Page 10: Unlocking Growth: Building a sustainable growth engine with the new rules of marketing.

“Very Disappointed” 0 – 25%

26 – 39%

40 – 100%

Keep burn low, engage, iterate

Try repositioning, retargeting

Proceed up pyramid

Page 11: Unlocking Growth: Building a sustainable growth engine with the new rules of marketing.

After PMF, transition to

growth

Page 12: Unlocking Growth: Building a sustainable growth engine with the new rules of marketing.

Growth

Stacking the Odds

Product/Market Fit

Source: Sean Ellis

Page 13: Unlocking Growth: Building a sustainable growth engine with the new rules of marketing.

Race to scale Instrument your product Activate users Increase exposure—the race to scale

Page 14: Unlocking Growth: Building a sustainable growth engine with the new rules of marketing.

Instrument your product Source data (referral source in user record) Event & cohorts Conversion rates Engagement/retention Lifetime value

Page 15: Unlocking Growth: Building a sustainable growth engine with the new rules of marketing.

Dave McClure’s Pirate Metrics Acquisition Activation Retention Revenue Referral

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Find your metric that matters “x people did x searches in past week” “y people visited my site x times last month” “z users send n messages via my app each day”

Source: Josh Elman

Page 17: Unlocking Growth: Building a sustainable growth engine with the new rules of marketing.

Build a Value Delivery Engine

Page 18: Unlocking Growth: Building a sustainable growth engine with the new rules of marketing.

Build a must-have product Understand must-have experience (MHX) Calibrate hook & promise messaging Optimize flows to deliver MHX

Must-Have experience

Hook/ Promise

Source: Sean Ellis

Page 19: Unlocking Growth: Building a sustainable growth engine with the new rules of marketing.

Steps for value delivery engine

Understand MHX

Macro  Optimization

Segment/Personalize

Page 20: Unlocking Growth: Building a sustainable growth engine with the new rules of marketing.

Optimize Value Delivery Engine

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Successful optimization process Funnel

Analytics

Insights Test Variations

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Max % that reach MH experience Build desire, reduce friction

Must-Have experience

Hook/ Promise Goals

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Desire – Friction = Conversion Rate

Source: Sean Ellis

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PIE test prioritization Potential Importance Ease

Source: Wider Funnel

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A/B test combos Messaging Flows

Hooks based on intent/pain Promise based on MHX Clear description of solution

Flows that reduce friction Flows that frontload MHX

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Language market fit What is this thing you’ve built to your users?

Store your photos Share your photos

Find a date Help people find a date

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Developing promise statements Focus on a single benefit for each Limit to about 10 words Write wildly different statements

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Segment/personalize last Default to macro first, then segment At a minimum manage active vs. inactive Develop programs to manage full lifecycle

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Growth

Stacking the Odds

Product/Market Fit

Driving Growth is Last Step

Source: Sean Ellis

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Four Types of Growth

0

20000

40000

60000

80000

100000

120000

140000

160000

180000

1 2 3 4 5 6 7 8 9 10 11 12 13

Topline

Activated

Retained

Monetized

Source: James Currier

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“Growth is about taking your product and optimizing it to create compound interest.

There are very few (if any) silver bullets when it comes to growth.”

– Andy Johns

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Why Growth Hacking?

$0

$20

$40

$60

$80

$100

$120

$140

$160

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

US Online Ad Spend per User

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“Growth hacking: A cool-sounding euphemism for making the doer feel good about using the

same old sleazy marketing tricks.” – David Heinemeier Hansen

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“Growth hacking is a recognition that when you focus on understanding your users and how they discover and adopt your products, you can build features that help you acquire and retain more users, rather than

just spending marketing dollars.” – Josh Elman

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Don’t delegate growth to a ‘hacker’ Original vision on customer need Don’t abdicate fate to a marketer Growth as an organizational priority

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Growth = fx (Probability of Success, Impact, Resources Required)

Source: Brian Balfour

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Right marketing mix for you? What are you optimizing for? (Learning, volume, cost) What are your constraints? (Time, money, audience, legal)

Source: Brian Balfour

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New User Channels

Email Facebook Twitter

Pinterest Craigslist Google+

iOS Android

Blog widget

Google SEO

Tumblr Twitter WOM

Press

Appstore Featured

TV Apps

Mobile ads

Web ads

Online video

TV ads

Radio ads

SEM

Affiliates

Viral Paid

WOM Source: James Currier

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Categories of growth hacks Platform integrations Powered by Instrumented virality Data-driven hacks Igniting word of mouth

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0

20

40

60

80

100

120

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Viral Channel Effectiveness

WOM Email

MySpace

Facebook

Craigslist

Twitter

iOS

Android

James Currier

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Growth

Stacking the Odds

Product/Market Fit

Build Growth on a Solid Foundation

Source: Sean Ellis

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Growth Engines Case Studies of How Today's Most Successful

Startups Unlock Extraordinary Growth

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