Growth Framework for Consumer Startups
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The document outlines a comprehensive growth framework focusing on user acquisition, retention, and metrics necessary for sustainable growth in applications. It emphasizes the importance of understanding core users, optimizing acquisition funnels, and tracking relevant performance metrics while avoiding vanity metrics. Key principles include retaining users for true growth, continuous product improvement, and treating growth as a collective responsibility within the startup.
Growth Framework for Consumer Startups
- 1. G R O W T H F R A M E W O R K P R AV I N J A D H AV | @ B E I N G P R A C T I C A L
- 2. P R AV I N J A D H AV | @ B E I N G P R A C T I C A L | P J @ B E I N G P R A C T I C A L . C O M WHAT’S IN HERE • Growth Framework • Core Users & Channels • Funnel Optimisation • ABCDEF Framework • Growth Scope of Work • FreeCharge: Growth • Core Metrics to Focus • Principles of Growth
- 3. P R AV I N J A D H AV | @ B E I N G P R A C T I C A L | P J @ B E I N G P R A C T I C A L . C O M G E T T I N G U S E R S T O I N S TA L L T H E A P P I S T H E E A S I E S T T H I N G T O D O . E N S U R I N G T H E Y K E E P U S I N G I T I S E X T R E M E LY D I F F I C U LT ! G R O W T H I S N O T E A S Y
- 4. P R AV I N J A D H AV | @ B E I N G P R A C T I C A L | P J @ B E I N G P R A C T I C A L . C O M FA I L FA S T. L E A R N FA S T E R . F E W T H I N G S W E FA I L E D AT… 1 . D r i v i n g A p p I n s t a l l s l i k e C r a z y 2 . N o t k n o w i n g w h a t m a t t e r s ? C u s t o m e r s . C h a n n e l s 3 . N o t m e a s u r i n g w h a t m a t t e r s 4 . C h a s i n g A p p S t o r e R a n k s 5 . T h i n k i n g M a r k e t i n g . N o t G r o w t h 6 . P l a y i n g i t S a f e
- 5. P R AV I N J A D H AV | @ B E I N G P R A C T I C A L | P J @ B E I N G P R A C T I C A L . C O M VA N I T Y M E T R I C S : M A K E S Y O U L O O K G O O D R E A L M E T R I C S : B R I N G S Y O U B A C K T O R E A L I T Y W H I C H M E T R I C S R E A L LY M AT T E R
- 6. P R AV I N J A D H AV | @ B E I N G P R A C T I C A L | P J @ B E I N G P R A C T I C A L . C O M R E A L M E T R I C S M AT T E R F O C U S O N D I F F I C U LT M E T R I C S T O D R I V E G R O W T H R e g i s t e r e d U s e r s A p p S t o r e R a n k D o w n l o a d s D 3 0 R e t e n t i o n A l l Tr a n s a c t i o n s Tr a n s a c t i o n s / M o n t h G M V G r e a t A p p ! Tr a n s a c t i n g U s e r s A p p M A U s C u r r e n t I n s t a l l s D 7 R e t e n t i o n N o n - P r o m o Tr a n x Tr a n x / U s e r i n M o n t h N e t M a r g i n s A p p R a t i n g s
- 7. P R AV I N J A D H AV | @ B E I N G P R A C T I C A L | P J @ B E I N G P R A C T I C A L . C O M G R O W T H F R A M E W O R K B U I L D I N G A S U S TA I N A B L E G R O W T H E N G I N E G R O W T H = N e w U s e r s E x i s t i n g U s e r s R e a c t i v a t e d U s e r s First WoW Experience High Frequency of Transactions C O R E Build a Large Pool of Transacting Users L a p s e d U s e r s Reactivate + _ Move existing users to Core Users
- 8. P R AV I N J A D H AV | @ B E I N G P R A C T I C A L | P J @ B E I N G P R A C T I C A L . C O M G R O W T H F R A M E W O R K B U I L D I N G A S U S TA I N A B L E G R O W T H E N G I N E C o re U s e r s : D i s c o v e r t h e b e s t u s e r s o f y o u r P ro d u c t E x i s t i n g U s e r s C O R E Move existing users to Core Users Attributes of Core Users • Transactions > More than X tranx per month • Avg Monthly spends > USD $100 • Referred > 3 friends • 90% of transactions without promotion Get Users to make Investment in Product • Saves his Credit / Debit Card on App • Saves addresses for easy booking • Top-up of User Wallet for Prepaid Transactions • Customer Referral Code generated Not all users are same. Some of them are Core Users.
- 9. P R AV I N J A D H AV | @ B E I N G P R A C T I C A L | P J @ B E I N G P R A C T I C A L . C O M G R O W T H F R A M E W O R K B U I L D I N G A S U S TA I N A B L E G R O W T H E N G I N E U s e r A c q u i s i t i o n C h a n n e l s : W h i c h o n e s w o r k b e s t ? A c q u i s i t i o n N E W E n g a g e m e n t E X I S T Not all user channels are same. User Acquisition Channels • Conversion Ratios: Install to Registration / Transactions • Retention: D7 / D15 / D30 • How many users are Core Users? LTV of Users • Effective CAC & CMAU • Splits: New / Existing / Reactivations User Engagement Channels • Email / In-App / Notifications / Inbox / SMS • Segment Conversion Rates - Open & Adoptions • Best Time to Reach • Effective CAC & CMAU • Splits: New / Existing / Reactivations For New Users For Existing Users
- 10. P R AV I N J A D H AV | @ B E I N G P R A C T I C A L | P J @ B E I N G P R A C T I C A L . C O M G R O W T H F R A M E W O R K A P P R O A C H F O R A C Q U I S I T I O N & R E T E N T I O N F u n n e l s O p t i m i s a t i o n s A p p ro a c h : N e w v / s E x i s t i n g U s e r s 45% Funnel Conversion* 68% Funnel for Existing User* 25% Funnel for New Users* *hypothetical numbers M A K E T H E M L A Z Y 1 s t W O W E X P E R I E N C E Existing Users: Make experience so lazy for them that they don’t look at alternatives. High retention, don’t switch to competition. First Time Users: Give them the first WOW experience as soon as they sign-up. Activate in first 48 hours.
- 11. P R AV I N J A D H AV | @ B E I N G P R A C T I C A L | P J @ B E I N G P R A C T I C A L . C O M G R O W T H F R A M E W O R K U S E R L I F E C Y C L E A B C D E F P ro g r a m : G ro w t h a c ro s s e n t i re U s e r L i f e C y c l e A B ED C F ABANDONMENT Abandoned Cart: Users who tried to make a transaction but abandoned before making the payment. BABY CARE Users who have made their first transaction - drive them to make their second in X days. CUSTOMISED Customised and Segmented programs that help in turning existing users to Core Users. DROPOFFs Reactivation programs for users who churn out in that month. Drop off from MAUs - Promo & Non Promo. ELIMINATE FRAUD Users who are abusing the product or promotions, ban them to ensure healthy cohorts. FAILURES Users who have experience failure post making payments, get them to use the product again. G ro w t h a c ro s s e n t i re U s e r L i f e C y c l e
- 12. P R AV I N J A D H AV | @ B E I N G P R A C T I C A L | P J @ B E I N G P R A C T I C A L . C O M Awareness G R O W T H F R A M E W O R K G R O W T H A C R O S S T H E F U N N E L W h a t i s t h e G ro w t h Te a m s u p p o s e d t o w o r k o n ? Activation Retention Revenue Referral Awareness Activation Retention Revenue Referral GrowthMarketing • Who is on Growth Team • Product Managers • Engineers • Designers • Data Scientists • Marketers • Analysts • Whom does Team work with: • Product • Marketing • Engineering 5PROBLEMSTATEMENTS Growth Team and its Goals:
- 13. P R AV I N J A D H AV | @ B E I N G P R A C T I C A L | P J @ B E I N G P R A C T I C A L . C O M G R O W T H F R A M E W O R K F R E E C H A R G E * * G R O W T H J O U R N E Y 0 tranx / day a. Friends & Family b. IIT Mumbai (Coupons) c. Word of Mouth a. More Campuses b. Startup Press & PR c. Physical Coupons a. Social w/t Coupons - FB b. Campus Sponsorships c. Early Spends on FB Fans d. SEO a. Bank Partnerships b. Media & FMCG Alliances c. New Channels – Mobile Apps d. ASO e. Online Marketing ∞ a. Growth Team b. Growth Framework c. Referrals d. Mass Media e. Rewards f. More Experiments 100 1,000 10,000 100,000 1,000,000 How we did at FreeCharge: • Go NUTs NUTs (New User Transactions) • Next Goal Add ‘0’ behind current number • FUGLY Fugly = lost opportunities. Grab it! • Retention True Growth = User Retention • Product Build awesome product. It wins! * * N O T E : I L E D G R O W T H AT F R E E C H A R G E
- 14. P R AV I N J A D H AV | @ B E I N G P R A C T I C A L | P J @ B E I N G P R A C T I C A L . C O M G R O W T H F R A M E W O R K B U I L D G R O W T H L E V E R S A C R O S S T H E F U N N E L * * N O T E : I L E D G R O W T H AT F R E E C H A R G E
- 15. P R AV I N J A D H AV | @ B E I N G P R A C T I C A L | P J @ B E I N G P R A C T I C A L . C O M G R O W T H F R A M E W O R K 5 C O R E M E T R I C S T O F O C U S F O R G R O W T H M E A S U R E : D A I LY / W E E K LY / M O N T H LY M E A S U R E F O R : E V E RY C AT E G O RY / C I T Y G r o w t h M e t r i c s1 H y g i e n e M e t r i c s E n g a g e m e n t P r o d u c t E x p e r i e n c e L o s t O p p o r t u n i t i e s 2 3 4 5 Is the transactional user base growing? What is the user retention & stickiness of product? Are customers complaining as you grow? Constantly improve the product experience How many rides are lost to inefficiencies?
- 16. P R AV I N J A D H AV | @ B E I N G P R A C T I C A L | P J @ B E I N G P R A C T I C A L . C O M G R O W T H F R A M E W O R K CORE GROWTH METRICS • MAUs (Monthly Active Users) • DAUs (Daily Active Users) • Total Transactions • Avg Transactions per User • Avg Transactions Size • Registrations • New Users Transactions • Reactivated Users • Churned Users • CAC • CMAU ENGAGEMENT METRICS • D7 Retention • D30 / D60 Retention • Promotional Transactions • Non Promotional Transactions • Type of Transactions • Personal • Business • Type of Product (eg. Uber) • Uber / UberX / Pool • Payment Type • CC-DC / Wallet / Cash HYGIENE METRICS • Tickets • Open / Total • Tickets / Transaction Ratio • Cancellations (eg. Uber) • By User / By Driver • Lost Transx (App Opened, did not Transact) • Escalations • NPS • Daily App Rating • Avg ETA • Transaction Ratings • By Stars: 1/2/3/4/5 • Reason for bad ratings C O R E M E T R I C S T O F O C U S F O R G R O W T H
- 17. P R AV I N J A D H AV | @ B E I N G P R A C T I C A L | P J @ B E I N G P R A C T I C A L . C O M G R O W T H F R A M E W O R K C O R E P R I N C I P L E S O F G R O W T H 1 User Retention is True Growth. User Acquisition is for Kids. 2 Vanity Metrics makes things look good. Focus on Real Metrics. 3 Growth Hacks =! One hack fits all. 4 Growth Hacking = Doing as many experiments as possible. 5 With time, every growth hack will lose its impact. Keep optimising. Keep experimenting. 6 Best way to grow a Startup is to make the product better! 7 In a Startup, Growth is everyone’s responsibility.
- 18. T H A N K Y O U P R AV I N | P J @ B E I N G P R A C T I C A L . C O M | @ B E I N G P R A C T I C A L