Distribution Hacking 101 - How to Achieve Growth
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The document discusses the concept of distribution hacking as a data-driven approach to user acquisition through paid advertising. It outlines a six-step framework that includes implementing analytics, defining target customers, setting conversion goals, hypothesizing acquisition channels, executing ad experiments, and optimizing the process. Key metrics like cost per acquisition (CPA) and lifetime value (LTV) are emphasized to measure the effectiveness of user acquisition strategies.
Distribution Hacking 101 - How to Achieve Growth
- 4. Paid advertising is the easiest way to acquire new users
- 5. Many startups don’t do paid advertising
- 8. A methodology for measuring, experimenting, and optimizing user acquisition The distribution hacking framework is…
- 10. CPACost Per Acquisition Our Goal LTVLifetime Value <
- 11. CPACost Per Acquisition Our Goal LTVLifetime Value < + Scale
- 12. $8 CPA Example… $20 LTV = $12 RPU Revenue Per User -
- 13. $8 CPA Example… $20 LTV = $12 RPU Revenue Per User - + Scale
- 15. in…
- 16. Six Steps
- 17. Step 1: Implement analytics & testing tools
- 18. Example… Three step conversion funnel Signup Add to Cart Checkout (Conversion Goal)
- 19. Example… Track each step of the funnel
- 21. When you have data…
- 24. Step 2: Define target customer
- 25. Pre vs. PostProduct Market Fit
- 28. Pre vs. PostProduct Market Fit
- 31. Critical Question: What is your customer’s persona when they are using your product?
- 34. Step 3: Define conversion goal & funnel
- 35. Conversion goal is a single event such that when a user completes it, they are considered a customer.
- 36. Sign up Lead Opt in newsletter Sale Subscription Examples…
- 37. Conversion funnel is the path your customers take to complete the conversion goal.
- 38. Example… Signup Add to Cart Checkout (Conversion Goal) 10,000 users 40% 20% 5% 500 customer s
- 39. Step 4: Hypothesize acquisition channel
- 41. Where do customers “hang out” online?
- 42. Step 5: Setup ads & execute experiment
- 43. Learn each ad platform that you want to use
- 44. Your budget should be enough to accumulate statistically significant data
- 45. Simple images Clear value proposition Single call-to-action General tips…
- 46. Step 6: Optimize
- 47. Potential for success? YES NOOptimize Step 4
- 48. CTR, Cost Conversion Rate What to optimizeAdvertiseme nt Landing Page
- 51. Step 1: Implement analytics & testing tools Step 2: Define target customer Step 3: Define conversion goal & funnel -------------------------------------------- Step 4: Hypothesize acquisition channel Step 5: Setup ads + execute experiment Step 6: Optimize or return to Step 4 Recap…
Editor's Notes
- #2: Explain what (online) paid advertising and optimization are
- #3: We use analytics tools to measure and optimize the performance of online advertising for the purpose of acquiring new customers at a cost-effective rate.
- #4: There are still plenty of underutilized channels and even within those channels plenty of underutilized strategies. Paid advertising works really well when you measure everything and optimize for cost and quality.
- #10: CPA = cost to acquire one customer LTV = value of that acquired customer
- #11: Because if we are able to acquire customers at a lower cost than their value, we are ROI-positive and the only constraint is our budget.
- #12: Scale meaning volume. Scale is important because we want rapid growth.
- #18: Proper analytics and testing tools are critical because we can’t optimize what we can’t measure.
- #19: Commerce website
- #26: Pre vs. post can be simplified down to whether you know your target customer for your product or not.
- #27: You can use distro hacking to figure out who you customer is. Design your audience segmentation to test lots of different audiences instead of scaling one audience.
- #31: FIGURE OUT WHA TTO SAY HERE
- #32: Demographic info is important but additionally, persona is critical.
- #34: Who your customer is at home is different than who they are at work. The products your customer thinks about and is willing to purchase at work is different than home.
- #40: Say: Why did I decide to include analytics implementation in the framework?
- #43: Say: Why did I decide to include analytics implementation in the framework?