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

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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

  • Unlocking Growth Building a sustainable growth engine with the new rules of marketing.
  • Most startups dont fail at building a product. They fail at acquiring customers. Gabriel Weinberg
  • Startup Growth Pyramid Growth Stacking the Odds Product/Market Fit Source: Sean Ellis
  • Growth Stacking the Odds Product/Market Fit Source: Sean Ellis
  • Get to Product Market Fit First
  • What is Product/ Market Fit? A large group wants/needs your product its a must have.
  • Focus obsessively on getting to product/ market t. Mark Andreessen
  • Do you have PMF? Ask How would you feel if you could no longer use the product?
  • Source: Sean Ellis
  • Very Disappointed 0 25% 26 39% 40 100% Keep burn low, engage, iterate Try repositioning, retargeting Proceed up pyramid
  • After PMF, transition to growth
  • Growth Stacking the Odds Product/Market Fit Source: Sean Ellis
  • Race to scale Instrument your product Activate users Increase exposurethe race to scale
  • Instrument your product Source data (referral source in user record) Event & cohorts Conversion rates Engagement/retention Lifetime value
  • Dave McClures Pirate Metrics Acquisition Activation Retention Revenue Referral
  • 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
  • Build a Value Delivery Engine
  • Build a must-have product Understand must-have experience (MHX) Calibrate hook & promise messaging Optimize ows to deliver MHX Must-Have experience Hook/ Promise Source: Sean Ellis
  • Steps for value delivery engine Understand MHX Macro Optimization Segment/ Personalize
  • Optimize Value Delivery Engine
  • Successful optimization process Funnel Analytics Insights Test Variations
  • Max % that reach MH experience Build desire, reduce friction Must-Have experience Hook/ Promise Goals
  • Desire Friction = Conversion Rate Source: Sean Ellis
  • PIE test prioritization Potential Importance Ease Source: Wider Funnel
  • 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
  • Language market t What is this thing youve built to your users? Store your photos Share your photos Find a date Help people nd a date
  • Developing promise statements Focus on a single benet for each Limit to about 10 words Write wildly dierent statements
  • Segment/personalize last Default to macro rst, then segment At a minimum manage active vs. inactive Develop programs to manage full lifecycle
  • Growth Stacking the Odds Product/Market Fit Driving Growth is Last Step Source: Sean Ellis
  • 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
  • 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
  • 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
  • Growth hacking: A cool-sounding euphemism for making the doer feel good about using the same old sleazy marketing tricks. David Heinemeier Hansen
  • 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
  • Dont delegate growth to a hacker Original vision on customer need Dont abdicate fate to a marketer Growth as an organizational priority
  • Growth = fx (Probability of Success, Impact, Resources Required) Source: Brian Balfour
  • Right marketing mix for you? What are you optimizing for? (Learning, volume, cost) What are your constraints? (Time, money, audience, legal) Source: Brian Balfour
  • 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 Aliates Viral Paid WOM Source: James Currier
  • Categories of growth hacks Platform integrations Powered by Instrumented virality Data-driven hacks Igniting word of mouth
  • 0 20 40 60 80 100 120 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Viral Channel Eectiveness WOM Email MySpace Facebook Craigslist Twitter iOS Android James Currier
  • Growth Stacking the Odds Product/Market Fit Build Growth on a Solid Foundation Source: Sean Ellis
  • Growth EnginesCase Studies of How Today's Most Successful Startups Unlock Extraordinary Growth DOWNLOAD ON AMAZON.COM