growth hack for startups

Growth Hacking For Lean Startups

Agenda

• Lean startup 101

• Why growth hacking?

• Growth hacking tools

• Growth hacking concepts

• How to hack growth

LEAN STARTUP 101

Steve Blank’s Stages

Problem/Market Fit

Solution/Market Fit

Product/Market Fit

Revenue Growth

Profit

Problem/Market Fit

Solution/Market Fit

Product/Market Fit

Revenue Growth Profit

One Metric That MattersValidated/Invalidated Hypotheses

GoalValidate a morphine problem for a specific target market

Exit Criteria• Customer archetype(s)• Validated morphine problem• Understand how the customer is solving the problem now• Market size• Organization chart and influence map (B2B)

Other Key Metrics• # of customer interviews

Business Model CanvasCustomer Segments, Value Proposition

Problem/Market Fit

Solution/Market Fit

Product/Market Fit

One Metric That MattersValidated/Invalidated Hypotheses

GoalDetermine the minimum features that solve a morphine problem for a specific target market

Exit Criteria• Customer archetype(s)• Minimum feature set to solve the customer’s problem• Understand what and how the customer is willing to pay to solve the problem• Market size (revised)• Have a set of customers who are willing to pay now

Other Key Metrics• # of customer interviews

Business Model CanvasCustomer Segments, Value Proposition, Revenue Model

Solution/Problem Fit

Problem/Market Fit

Solution/Market Fit

Product/Market Fit

One Metric That MattersChurn rate

GoalEngaged, paying customers who have a churn rate less than 5% monthly

Exit Criteria• Churn rate is less than or equal to 5% monthly

Other Key Metrics• WAU (Weekly Active Users)• MAU (Monthly Active Users)• Cohort analysis by activity• Long term cancellation rate

Business Model CanvasCustomer Segments, Value Proposition, Revenue Model, Customer Relationships

Product/Market Fit

Problem/Market Fit

Solution/Market Fit

Product/Market Fit

One Metric That MattersWOWG (Week Over Week Growth)

GoalConsistently grow revenues

Exit Criteria• WOWG is greater than or equal to 5%

Other Key Metrics• ARPU (Average Revenue Per User)• Churn rate • WAU/MAU• Activation %• Time to conversion• Referral rate

Business Model CanvasCustomer Segments, Value Proposition, Revenue Model, Customer Relationships, Channels

Revenue Growth

Problem/Market Fit

Solution/Market Fit

Product/Market Fit

One Metric That MattersProfit Margin %

GoalOperationalize the product to get to profitability

Exit Criteria• The product is profitable and has a high growth rate

Other Key Metrics• CAC (Customer Acquisition Cost)• LTV (Life Time Value)• ARPU (Average Revenue Per User)• MRR (Monthly Recurring Revenue)• LTV to CAC ratio• Months to recover CAC• COGS/customer (Cost Of Goods Sold)• Time to breakeven

Business Model CanvasFull canvas

Profit

WHY GROWTH HACKING?

Problem/Market Fit

Solution/Market Fit

Product/Market Fit

Revenue Growth

Profit

You discovered a target market who has that problem

You have found a really painful problem

You have created a solution that customers tell you really solves the problem

So, you build your MVP and invite your first customers to use it

The customers sign up and become activated

Then what happens?

Nothing

So, you buy some AdWords and get more sign ups. Then, what happens?

1 2 3 4 5 6 7

Product Usage

Your product sucks

The Trough of Sorrow

Most startup founders

focus heavily on product but

most of a startup's risk lies in distribution

Dave McClure

Marketing

CustomerDevelopment

GrowthHacker

Growth Hacking Tools

Install Analytics

Google Analytics is Worth What You Pay For It

People, not page views, buy software

Analytics Tools

You will want to be able to A/B test, track opens and click through’s

Triggered Email

Talk to your customers in real time

SMSIf your customer is a Millennial, they prefer texting

Website Tours

App Notifications

If you have a mobile app, you can use push notifications to engage your customers

In App Interventions

GlueApps that put all the pieces together

Growth Hacking Concepts

AcquisitionBring prospective customers to your site

ActivationSign up

RetentionEngage users

Referral

A/B testing

LinkBaitPro

Get Started

LinkBaitPro

Get Started

What to/Not to Test

LinkBaitPro

Get Started

For recreational use only. Do not staple or paper clip. All models over 18 years of age. Prize not redeemable for cash value. If condition persists, consult your physician. No user-serviceable parts inside.

Test theHeadline

Image vs.Video

Call to actiontext and color

Don’t spend alot of timetestingthe copy

Events

1. Login

2. Upload Photos

3. Tag Photos

4. Share Photos

5. Comment on Others Photos

Don’t Focus on Acquisition When Activation and Retention are Low

Visited Site Signed Up Activation Billed

14 3 1

0.6% 21.4% 33.3%0.0%

Cohort Analysis

Track Events Across Cohorts

The One Metric That Matters

At least 7 friends within 10 days of signing up

Getting a new user to link a device and add a file

Once a user follows 30 people, they’re more or less active forever

If someone comes back a day after signing up for a game, that is a leading indicator of them becoming an engaged and paying user.

Post Launch Stages

1. Product/Market Fit

DISENGAGE

D USER

ENGAGED

REACTIVAT

ETRIAL OVER

PAYING

CUSTOMER

DISSATISFI

RESOLUTIO

DISENGAGE

REACTIVAT

CANCEL CANCELACCOUNT CANCELLED OR

BILLING INFO EXPIRES

Free userdisengagement

PaidConversion

SupportData

ReactivatonRate

FreemiumChurn

TrialAbandonment

Disengagement

Post Launch Stages

2. Revenue Growth

DISENGAGE

D USER

ENGAGED

REACTIVAT

ETRIAL OVER

PAYING

CUSTOMER

DISSATISFI

RESOLUTIO

DISENGAGE

REACTIVAT

PaidConversion

SupportData

ReactivatonRate

FreemiumChurn

TrialAbandonment

Disengagement

PAID DIRECT SEARCH WOM

Customer Acquisition Cost

VISITOR

FREEMIUM/

ENROLLME

Long funnel health

INHERENT

VITALITY

INVITE

OTHERS

Viral coefficientViral rate

Post Launch Stages

2. Revenue Growth

3. Profit

DISENGAGE

D USER

ENGAGED

REACTIVAT

ETRIAL OVER

PAYING

CUSTOMER

DISSATISFI

RESOLUTIO

DISENGAGE

REACTIVAT

PaidConversion

SupportData

ReactivatonRate

FreemiumChurn

TrialAbandonment

Disengagement

PAID DIRECT SEARCH WOM

VISITOR

FREEMIUM/

ENROLLME

Long funnel health

INHERENT

VITALITY

INVITE

OTHERS

UPSELLING

CAPACITY

FORMER USERS FORMER CUSTOMERS

Tiering

UpsellingRate

Unpaid Churn Rate Paid Churn Rate

User Lifetime Value Customer Lifetime Value

Post Launch Stages

1. Stickiness

2. Traffic

3. Revenue

PAID DIRECT SEARCH WOM INHERENT

VITALITY

VISITOR

FREEMIUM/

ENROLLME

INVITE

OTHERS

DISENGAGE

D USER

ENGAGED

REACTIVAT

ETRIAL OVER

PAYING

CUSTOMER

UPSELLING

CAPACITY

DISSATISFI

RESOLUTIO

DISENGAGE

REACTIVAT

FORMER USERS FORMER CUSTOMERS

Long funnel health

PaidConversion Tiering

UpsellingRate

SupportData

ReactivatonRate

FreemiumChurn

TrialAbandonment

Disengagement

Unpaid Churn Rate Paid Churn Rate

User Lifetime Value Customer Lifetime Value

• Measure engagement

• DAU/WAU –What does active mean?

• Segment

• New Functionality

• Does it improve stickiness?

• How do we measure that?

• Lazy registration

Stickiness

10X Product Launch

How to Hack Growth

It’s ALL About Onboarding

1. Find Out Why

Talk to your customers

2. Determine Your Hypothesis on What Engaged Behavior Looks Like

Are your customers solving their problem?

What is the definition of engaged for your product?

Get a Baseline

Signed Up Login Uploaded Photos

TagPhotos

16.8% 11.2% 7.3%0.0%

Create a Dashboard

3. Create an Intervention and Do It

Bugsnag captures errors from your web and mobile applications. The first email they send to new signups is very simple, but has been yielding great results.

Hey {{ first_name }},

I'm James, CEO of Bugsnag. I wanted to reach out to see if you need any help getting started.

Cheers,

Surprise Personal Email

We've missed you on CouchSurfing! It's been a long time since we've seen you around! The last time you logged into CouchSurfingwas four months ago.

Props to Segment.io

The Last Email You Will Ever Send

A lot has changed since you left – so we'd like to offer you another FREE trial!

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In App Intervention

4. Perform a Cohort Analysis

5. Analyze the Results

6. D.C. al Fine

Create a Hypotheses

Measure the Results

Test the Hypotheses

With an Intervention

Proceed, Pivot, or

Questions

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