Growth Hacking Workshop
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The document outlines a growth hacking workshop led by Jared Waxman, focusing on strategies for understanding and implementing growth hacking techniques such as market fit, core loops, and platform hijacks. Key topics include the importance of viral loops, growth multipliers, and actionable exercises to identify and model growth strategies. Participants are expected to gain a comprehensive understanding of growth hacking principles, metrics, and how to create impactful growth roadmaps.
![Product Market-Fit Assessment
How would you feel if you could no longer
use [product]?
o Very disappointed
o Somewhat disappointed
o Not disappointed (it isn’t really that useful)
o N/A – I no longer use [product]
S: Sean Ellis http://www.startup-marketing.com/using-survey-io/
At least 40%
need to answer
in the green.
40%
Sean Ellis](https://image.slidesharecdn.com/growthhackingjaredwaxmanh-160702011731/85/Growth-Hacking-Workshop-55-320.jpg)
Growth Hacking Workshop
- 2. Marketing, Experimentation, Growth @ Jared Waxman jared@benchmark- analytics.com
- 3. Neil Patel CrazyEgg, KissMetrics, Hello Bar Andrew Chen Uber, Mohr Davidow Brian Balfour HubSpot Sean Ellis Qualaroo, Xobni, Dropbox Dave Macclure 500 Startups Alex Schultz Facebook Thanks Guys!
- 5. ? ?
- 6. Discussion: Growth Hacking 1. Why is this topic in such high demand? 2. Do we all have the same definition? 3. What do you want to learn?
- 7. WIIFM? Want you to leave this with… UNDERSTAND (1 hour) • Understanding of macro trends leading to it • Understanding of the disciplines involved • Clear litmus test for what a Growth Hack is • Understand two main growth loops, subtypes • Understand channel vs platform hijacks • Have examples of loops and hijacks • Understand k-factor, growth multipliers, cycle time DO (1 hour) 1. Market Fit • Qualitative measurement • Quantitative measurement 2. Growth Fit • Compute Growth Fit Score 3. Find Core Loops • Complete brainstorming exercises towards discovering your main loops 4. Model Loops • Model out your top loop 5. Growth Roadmap • Start to fill out a growth roadmap
- 8. In the beginning… There was brand marketing. • Broadcast out • Expensive • Untrackable
- 9. Next comes Performance Marketing: • Scalability • Trackable • Precise
- 10. And there was still “Other”: • Referrals • Unknown origin • Word of mouth • Organic ?
- 11. Growth Harnesses The “Other” Brand & Performance Marketing Growth Marketing • Requires large budgets • Costs are linear to sales • Must “breakthrough” noise Consumers share message with other consumers Company shouts message to consumer • Smaller, one-time investments • Potentially exponential returns • Referrals & content more persuasive
- 12. Analog Media Digital Media Digital Conversations Brand Marketing Performance Marketing Growth Marketing 1976 1996 2016
- 13. Growth Hacking is a Blend of Disciplines • Experimentation • Analytics • Agility • Coding • API hacks • Grey Hat • Product Management • Feature development • Roadmap prioritization • Gamification • Social Media • Performance Marketing • Mobile app chops
- 14. Is there a platform hijack?Is there a loop? Identifying a Growth Hack: The Test If you answer yes to either question, it’s a growth hack. or
- 15. New user signs up What’s a (Viral) Loop? Some users import address book Some users send invites Some friends click through S: Chen & Balfour, SVBR
- 16. Viral Funnel
- 17. Viral Loops 3 Types of Viral Loops • Natural, Delight-Driven – Uber, Zume, X.ai • By-Product of Offering Functionality – Facebook, Hotmail, PayPal, LinkedIn, X.ai • Incentivized – CandyCrush, PayPal, Square, HotJar
- 18. Hotmail
- 19. X.AI
- 20. PayPal
- 21. PayPal -> Get $10
- 22. Airbnb Referral
- 23. HotJar-> cut in line
- 24. 24 Share Square -> get free processing
- 25. Candy Crush -> Unlocks
- 26. LinkedIn with Contacts Uploader LinkedIn (Few users in early days) Your Contacts List Referral Loop Invite new users Connection request existing users Re-engagement Loop Find Connections Upload contacts (Gmail, Outlook, etc.) Accept connection Suggest more friends Create account
- 27. New user signs up What’s a (Content) Loop? Some create new content Some of the content gets indexed by Search Engines Some searchers see content and click through
- 28. New user signs up for LinkedIn Content Loop for LinkedIn on Google Creates Profile, Indexed by Google Someone searches for “John P. Appleseed” Visit to John’s profile
- 29. Content Loops Examples: • Social Profiles & Directories – LinkedIn, Facebook, FindLaw • Reviews, Curation – Amazon Review • Marketplaces – Craigslist, Ebay, AirBNB – CafePress, Thingaverse – SoundCloud • Information – Slideshare, YouTube – Quora, JustAnswers, Wikis – Medium, Udemy • Ad Sponsored Products – Yahoo Websites, Wix, VistaPrint Do your users generate content? Is that content indexed and public? and If both of these are true, then you have a content loop.
- 30. Channels vs Platform Hijacks “Traditional” Channels • TV • Radio • Print • Direct Mail • Email • Outbound sales • Paid search • Display “Growth” Platform Hijacks • Craigslist • Alignable, NextDoor • Facebook, Twitter • Pintererst, Instagram, Tumblr • Reddit, YikYak, SnapChat • WeChat, WhatsApp, Line • iMessage, Facebook Messenger, Slack • Youtube, Periscope • Bloggers & Blog comments • Contacts Uploader • Office365 • Keyboard • Browser • MooCs • Add-ins, Plug-ins, Modules • Marketplaces & App Stores • Quora, StackExchange Other People’s Audience (OPA)!
- 31. Channels vs Platform Hijacks Traditional Channels • Linear • Obvious to marketer • Stable • No special tools required • Sets off prospect’s skepticism radar “Growth” Platform Hijacks • Exploding in size (hopefully) • Non-obvious at first • Small window of exploitation (grey hat) • May require engineering toolset • Flies under the ”I’m being sold to” radar
- 32. A user of a different platform can interact with something you’ve put on there. What’s a Platform Hijack? To take full advantage they sign up for your offering. They take actions within your offering Those actions lead to more chances for others to interact on the other platform S: Chen & Balfour, SVBR
- 33. Birth & Death of a Growth Channel Chat bots? Direct Mail Overcrowded, Noisy, Spammy, Expensive Email / Newsletters Facebook Post App Store Vchat? Early, Clever, Has Breakout, Inexpensive
- 34. AirBNB Posting to Craigslist Fill out listing Cross- listed on Craigslist AirBNB (Fewer eyeballs) Craigslist (Lots of eyeballs) Posted on AirBNB Visit listing Rent space Content LoopA small subset will decide to post their own listing on AirBNB, continuing the loop Links back to AirBNB
- 35. AirBNB on Craigslist S: https://growthhackers.com/growth-studies/airbnb
- 36. AirBNB Poaching off Craigslist Fill out listing Filled out listing on Craigslist AirBNB (Fewer listings) Craigslist (Lots of listing) Posted on AirBNB Emailed CL user to suggest posting on AirBNB too
- 37. AirBNB on Craigslist S: https://growthhackers.com/growth-studies/airbnb
- 42. Growth Loops Initial Acquisition Growth Loops New users Conversion process Visits Impressions Linear + Loops Cycle Time Invites Optimize… 1. Conversion Rate 2. # of Invites 3. Cycle Time
- 43. K-Factor S: https://bothgunsblazingblog.wordpress.com/2013/10/22/the-k-factor-growth-and-going-viral/ Conv rate (c) Avg invites per user (i) c x i = k Note: “i” can be invites per users for referral loops, or can be content created & published for content loops.
- 44. K-Factor Initial Acquisition New users Conversion process Visits Impressions When k > 1 When k < 1
- 45. Growth Multiplier When k > 1When k < 1 When k = 1 • Each loop produces fewer users than the one before. • Declining system. • Still very good to have a loop at all! • To figure out the total # of users or $s from one round of (linear) inputs, use the Growth Multiplier formula • Each loop produces more users than the one before. • Would go to infinity, except you eventually saturate the market and run out of potential new users. Or competition creeks in. Or the platforms shut you off. • Each loop produces the same number as the one before. • Linear growth of users with each loop • Goes on forever (in theory)
- 46. K-Factor 0 100 200 300 400 500 600 700 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 TotalUsers Loops k = 1 k < 1 k > 1 k = 1.1 k = 1.0 k = 0.8
- 47. Growth Multiplier If k < 1, Growth Multiplier = 1/(1-k) Tells you how many users you will get from your initial set of users. Sometimes it only takes 4 loops to cap out… Sometimes it takes 20 loops to cap out…
- 48. Growth Multiplier Gives you leverage on conversion improvements It’s just a 10% increase in conv rate but a 67% increase in users! Initially your conversion rate is 20% But then you optimize it through testing and get 22% conversion rate. 8.3 / 5 = 1.67
- 49. More complete example You will likely have more detailed steps and need to track and optimize they all. But they easily map back the simplified model.
- 50. Example – LZ FB shout-out This loop has a low k-factor, but the growth hack is cheap to implement and raises revenue 6%.
- 51. Cycle Time Cycle Time is the 3rd variable to optimize in growth loops. This one is key to managing cash flows.
- 52. WIIFM? Want you to leave this with… UNDERSTAND (1 hour) • Understanding of macro trends leading to it • Understanding of the disciplines involved • Clear litmus test for what a Growth Hack is • Understand two main growth loops, subtypes • Understand channel vs platform hijacks • Have examples of loops and hijacks • Understand k-factor, growth multipliers, cycle time DO (1 hour) 1. Market Fit • Qualitative measurement • Quantitative measurement 2. Growth Fit • Compute Growth Fit Score 3. Find Core Loops • Complete brainstorming exercises towards discovering your main loops 4. Model Loops • Model out your top loop 5. Growth Roadmap • Start to fill out a growth roadmap
- 53. Growth Fit Score Product- Market Fit Talent & Tools Roadmap Criteria Core Loops & Model
- 55. Product Market-Fit Assessment How would you feel if you could no longer use [product]? o Very disappointed o Somewhat disappointed o Not disappointed (it isn’t really that useful) o N/A – I no longer use [product] S: Sean Ellis http://www.startup-marketing.com/using-survey-io/ At least 40% need to answer in the green. 40% Sean Ellis
- 56. Product Market-Fit Assessment S: Sean Ellis http://www.startup-marketing.com/using-survey-io/ 40% Where are you? Proceed to Growth Fit Score Yes, it’s over 40% Check engine. Narrow in on any users who answered in the green. Find point of delight and build off it. Or fix blockers to delight. If still under 40%, pivot. No, it’s under 40% We haven’t collected this yet. Stop. Plan out how you will measure this.
- 57. Plan for Measuring Market-Fit - LZ 1. What defines the “core” of your offering? 2. How can you identify people who have used the core of your offering at least twice? 3. And within in the last 2 weeks?
- 58. Setup Market-Fit Survey Now Activity: Go here now and setup your survey: http://www.survey.io/ How will you automate and motivate the survey invites?
- 59. “Retention is the single most important thing for growth.” - Alex Schultz Alex Schultz Facebook
- 60. Quantitative Check on Product-Fit Viability There is a segment of the population that finds this offering compelling to use regularly. There is no segment of users that finds it compelling for ongoing use. Hypothetical Scenario where new user growth is in steady state S: Alex Schultz https://www.youtube.com/watch?v=n_yHZ_vKjno
- 61. Quantitative Check on Product-Fit Viability Adding an increasing number of users at the top of the funnel doesn’t help if the product doesn’t have fit. Hypothetical Scenario where new user growth increases 2% per day
- 62. “We spent a bajillion bucks on the Tables ad. And now we have ½ Million installs. But…installs isn’t really the metric that matters. We need Daily Active Users – people who come back to the platform.”
- 63. 2. Growth Fit Score Personal or embarrassing topic Natural topic of conversation Long Lead Time Rapid Iteration In person interaction Collects lots of data Incremental features Game changer Consumption only Outputs user generated content Hard to locate prospects Unwalled garden of prospects exists Vitamin Painkiller Solo usage Facilitates interaction FasterSlower
- 64. Personal or embarrassing topic Natural topic of conversation Long Lead Time Rapid Iteration In person interaction Collects lots of data Incremental features Game changer Consumption only Outputs user generated content Hard to locate prospects Unwalled garden of prospects exists Vitamin Painkiller Solo usage Facilitates interaction
- 65. 3. Brainstorm Your Core Loops
- 66. Sharing Q A Applications for Growth What about your app would make it a topic of conversation? What moment in the experience can you nudge user to share? What human emotion can you tap to motivate sharing? What added non- monetary incentives can you offer to propel more sharing? What sort of monetary incentives could you offer? How would you model out the ROI?
- 67. Interactions Q A Growth Implications What person-to-person interactions does your app already facilitate? What interactions could your app facilitate? What sort of value can you create for those persons on the non-user side of the interaction? How much activation energy would that require from the non- user and how can you leverage that?
- 68. Content Q A Applications for Growth What kind of content does your app create? What kind of content could it create? What kind of user generated content may be related to this same problem?
- 69. Platform Hijacks Q A Growth Implications What desktop apps do your prospects use often? What website do your prospects use often? What mobile apps do your prospects use often? Where do your prospects live & work? Where do they play? Who are the biggest influencers for your prospects? Who are the biggest intermediaries for your prospects? From where do your prospects draw inspiration?
- 70. Platform Hijacks Q A Growth Implications Which platforms that you identified provide some level of programmatic access? Which platforms that you identified can you build your own programmatic access into? How can you flow your content into their platform? How can you flow their users into your platform?
- 71. Your Plan Core Loop Secondary Loop Platform Hijack
- 72. 4. Model Out Your Loops
- 73. Example – FB shout-out This loop as a low k-factor, but the growth hack is cheap to implement and raises revenue 6%.
- 74. Model Growth loop Your turn. Go here to download template: http://bit.ly/growthmodel_tvlp
- 75. 5. Draft Your Growth Roadmap
- 76. AARRR for Pirates Dave Macclure
- 77. S: Dave Macclure http://www.slideshare.net/dmc500hats/startup-metrics-for-pirates-long-version/3- Customer_Lifecycle_Conversion_Behavior_Websitecom
- 79. Growth Roadmap 0. Market-Fit 1. Acquisition 2. Activation • Paid vs Trial vs Freemium etc. • Tripwire sale vs Core sale 3. Referrals & Hijacks • Find main loops and hijacks • Raise k-factor – Tests to increase i – Tests to increase c – Tests to shorten cycle time 4. Revenue • Pricing, packaging • X-sells, upsells 5. Retention • Hooked framework • Octalysis framework Potential impact from growth model Evaluate ideas based on: Change of it succeeding Time & Effort to test it x x Perhaps most important. Go big or go home. Hard to predict Important, but don’t only test the easy things or you could miss out on biggest opportunities Tips on Weighting
- 80. Growth Roadmap Experiments to: Potential Value from k-factor model Likelihood to Succeed Time & Money to test it Score Increase # of invites Increase conversion Decrease cycle time
Editor's Notes
- #4: There are some of the trailblazers and teachers to which I owe my education.
- #12: B
- #17: Traditional funnel starts with non-users to hopefully generate some users. Growth funnel starts with a user, and that users generates more users
- #18: Note how companies leverage more than one viral loop type.
- #20: Other parties will think, “Hey what’s this. Can I sign up too?”
- #23: Standard double sided or double loop referral
- #28: Content tends to be a slower loop than referrals.
- #29: Content tends to be a slower loop than referrals.
- #36: Circa 2010
- #41: Not really a hack when it’s a bus dev deal, but gives an interesting data-point on what to include in considering a channel or platform.
- #57: In my example, we started at the bottom – didn’t have a good collection system. So retooled NPS measures. Then got a result that was under 40%. Put together a 10 point plan to fix. Lastly, after implementing and testing all those measures, we got the NPS where it needed to be in order to proceed with activities like social referrals.
- #61: So Sean Ellis says get above 40% on the qualitative survey of usefulness Alex Schultz takes it a step further, and says to measure MAUs vs Days Since Signup. If you retention curve goes asymptic to a line parallel with the X axis, you have market fit If your retention curve slopes down vs X axis, it will intercept it, and you’re not ready to do growth hacking It’s ok if the green line is lower, so long as it basically flattens out to go parallel to x axis.
- #63: They got 500K installs but only 19K DAUs.
- #64: Some offerings have the right dynamics to go fast Others can leverage growth strategies, but should not expect the same results
- #65: Some offerings have the right dynamics to go fast Others can leverage growth strategies, but should not expect the same results