Preparing your startup for growth
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PREPARING YOUR STARTUP FOR HIGH GROWTH PREPARED FOR: IGNITE MANCHESTER COHORT 1 BY: ANDREW ALLSOP
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Transcript of Preparing your startup for growth
PREPARING YOUR STARTUP FOR HIGH GROWTH
PREPARED FOR: IGNITE MANCHESTER COHORT 1BY: ANDREW ALLSOP
I’ve worked with...
Find [email protected] @andrewallsop imaa.io (under construction!)
https://medium.com/@AndrewAllsop
http://meetup.com/Manchester-Startup-Growth/
WHAT THIS IS
Scaleable
Repeatable
Basis in marketing
Driven by product
Inspired by data
WHAT THIS IS
A practical process to...
LearnPrioritise
& Execute
...ways to help MORE PEOPLE experience MORE VALUE from your product.
WHAT THIS IS
Identify the core value you offer more than anyone else - your A-ha!/WOW moment
(ask your users, market | predictive metrics)
Test, measure and experiment with ways to make more people experience it
Examples
Bspottedgot more than 3 replies in their first 7 days
LumiciHad more than 20% of their courses completed
Theluxecome back and repurchase after 30 days
ArtWishListSold more than 3 pieces of art
WeGymGet replies to 4 of their messages after 30 days
Global DormInvited their membership lists
RecrvtSuccessfully placed a candidate in their first month
MuaMuaReceived 3 or more bookings a month
Flyr% of searches that resulted in bookings
SocialyBought/sold 3 pieces of content
The number of users who...
WHY GROWTH
The expectations for a high growth software company have changed
Bootstrap AngelSeed
Series
Series/IPO/Acquisition
TIME
USE
RS/
REV
ENU
E
WHY GROWTH
Popular channels get crowded very fast
Ad Spend by Consumer
WHY GROWTH
Different set of skills than traditional marketing
PRODUCT
TECHANALYTICS
SKILLS
ACQUISITION
ACTIVATION
RETENTION
REVENUE
REFERRAL
WHY GROWTH
Ultimately...
97% of startups fail because they don’t have a market, not because of
poor engineering
Origins
Buy some AdWordsBig TechCrunch launch
Hire a PR firm and a VP of Marketing
Result~100,000 users
Cost Per Acquisition: £300Customer Lifetime Value: < £100
Source: http://www.slideshare.net/gueste94e4c/dropbox-startup-lessons-learned-3836587/32-Results_ulliSeptember_2008_100000_registered
2-sided Incentive
Results
15 months later: 4,000,000 usersover 55% from referral, viral and sharing features
These aren’t anomalies
But don’t get caught up trying to get that one special tactic. Focus on
execution and learning. It will come.
THREE MISTAKES THAT WILL DAMPEN YOUR POTENTIAL TO GROW
1LACK OF FOCUS
Hiring a growth hacker
Lack Of Focus
“The only way to tackle growth is to get the whole
team focussed on it”Sean Ellis
Lack of Focus
LAW OF CONTRACTION
YOU CAN BE ANYTHING TO ANYONE BUT YOU CAN’T BE EVERYTHING TO EVERYONE
-juststartupthings-
Lack Of Focus
Lack Of Focus
Not choosing/discovering a market
2Trying To Scale
Prematurely
Traction Transition Growth
Goal Product-Market Fit Discovering Growth Levers
Turning Up Growth Levers
Metric Retention Growth RateCPA = LTV, Payback < 3 months
Growth RateCPA < LTV, Payback > 3 months
Volume Find a steady stream Increase the flow Release the Kraken
Channels Experiment with ⅔ in order to find one that
works1 > 1
Optimization Macro Macro + Micro Micro
Organization
Scaling Prematurely
Scaling Prematurely
WHY GROWTH
Ultimately...
97% of startups fail because they don’t have a market, not because of
poor engineering
3Putting Excitement
Before Effectiveness
Startup≠Normal Business
≠
Excitement Before Effectiveness
THE PROCESS
THE PROCESS
MODEL
BENCHMARK
FOCUS
BRAINSTORM & BACKLOG
PRIORITISE
TEST
ANALYSE
SYSTEMISE
MODELA quantified model of your company
Dave McClure’s Pirate Metrics*
The Lean Marketing Funnel
Signups, Data In, Subscribed, Churned
Spreadsheets, Mixpanel or Amplitude
PRIORITISEICE score
IMPACT - WHAT WILL THE IMPACT BE IF THIS WORKS?
CONFIDENCE - HOW CONFIDENT AM I THIS WILL WORK?
EFFORT - HOW MUCH RESOURCES ARE REQUIRED?
Use your growth documents to write upyour hypothesis
HYPOTHESIS
BECAUSE WE SAW (DATA/FEEDBACK), WE EXPECT THAT (CHANGE) WILL CAUSE
(IMPACT). WE WILL MEASURE THIS USING (METRIC)
TESTWhat is the least resource intensive way to gather data about the hypothesis?
Use your growth documents to write up
your design so anyone can understand
the context and improve learnings
ANALYSIS
Was this experiment a success/failure?
What was the impact?
WHY did I see the results I did?
update me
SYSTEMIZE
Take feedback
Create new experiments
Productise/Systemise/Playbook-ise
WITHOUT A PROCESS
SUCCESS = LUCK
WITH A PROCESS
CREATIVITY + RESOURCES
TIMECHANCE ofSUCCESS =
ToolsAcquisition
Advertising / Retargeting: Adroll, Dataxu, Facebook, Twitter, Google Adwords, BuySellAds, PerfectAudienceAttribution: Appsflyer, Attribution, Convertro, Mobile App Tracking, AdjustConversion optimization: Optimizely, Leanplum, Taplytics, VWO, Formisimo
Activation
Marketing automation: Autopilot, Iterable, Marketo, Customer.io, VeroFunnel analysis: Mixpanel, Amplitude, Indicative, KISSmetricsHeatmapping: CrazyEgg, Inspectlet, LuckyOrange, MouseFlow, MouseStats, Navilytics, FullStory
Retention
Marketing automation: Autopilot, Iterable, Marketo, Customer.io, VeroPush notifications: Outbound.io, Kahuna, LeanplumCustomer communication: Intercom, AppboyNPS, surveys: Delighted, QualarooCustomer success: Zendesk, Freshdesk, Gainsight, Totango, UservoiceChurn Insight: Framed.io
Revenue
CRM: Salesforce, Pipedrive, HubspotEcommerce analytics: Baremetrics
Referral
Referral Management: SaaSquatch, Talkable, Extole
Feedback, Comms & Analytics Tools - Qualitative
The tools in this category include:
● Surveys/NPS: AskNicely, Promoter, Uservoice, Satismeter, Wootric, Qualaroo, WebEngage, Delighted
● LiveChat: LiveChat, Olark, SnapEngage, Userlike, Intercom● Heat Mapping: CrazyEgg, Inspectlet, LuckyOrange, MouseFlow, MouseStats, Navilytics,
FullStory
Feedback, Comms & Analytics Tools - Quantitative
Web Analytics: Google Analytics
● Behavioral Analytics: Mixpanel, Amplitude, Indicative, Keen.IO, Heap● A/B Testing: Optimizely, Visual Website Optimizer● Real-time Analytics: GoSquared, Chartbeat
RECOMMENDED STARTER STACKGoogle Tag Manager
Google Analytics
Segment.com**
Mixpanel/Amplitude
Optimizely
HotJar
AdWords/Facebook/Twitter
TO DO by Next MonthInstall the starter stack or equivalent
Build a quantified model of your company
Choose one area of the AARRR funnel that you think is causing the biggest bottleneck for your users
Brainstorm 20 ideas that could help improve it and include them in your experiments backlog in Trello or Projects.GrowthHackers.com
Further ResourcesEvent Tracking Spec template
Growth Project Management Trello Board
Example Growth Documents
Quant. SaaS Framework spreadsheet
Quant. Marketplace Framework spreadsheet
