customer acquisition 101
TRANSCRIPT
CUSTOMER ACQUISITION 101
Andrea Sharfin FriedensonJuly 2016
@asharfinhttps://www.linkedin.com/in/asharfin
AGENDA
ABOUT ME
DON’T SUCCEED BY LUCK
MODELLING
TESTING
PROCESS
HOW MUCH TO PAY
IDEAS AND RESOURCES
ABOUT ME
DON’T SUCCEED BY LUCK
Luck Is a Bad Marketing Plan
UnpredictableIf it fails, you won’t know why
Marketing via Luck
Idea: Let’s tweet about our program!
OMG it went viral!
Some retweets. One signup. Was that enough?
Luck Leaves Your Biggest Questions Unanswered
Why was the campaign good or bad? What should you do next?
A Better Plan: Model & Test
Model
Identify your goal
Map out steps to get there
Put #s next to each step
Test
Establish hypothesis
Run cheap experiments
Measure results
Bet more into winning tactics, abandon losers
Document outcomes so you don’t repeat work
MODELLING
Modelling: The Funnel
Awareness
Acquisition
Engagement
Monetization
The FunnelNote: #s for discussion purposes only
Stage StepConversion Rate # People Est Value
AwarenessSees tweet about Reboot Accelerator 1,000 $0.99
Acquisition Visits Site 10% 100 $9.90
Engagement Signs up for newsletter 5% 5 $198.00
EngagementVisits SV Immersion Accelerator Payment Page 60% 3 $330.00
GOAL: Monetization Registration 66% 2 $500.00
TESTING
Start with Pinch Points
Stage StepConversion Rate # People Est Value
AwarenessSees tweet about Reboot Accelerator 1,000 $0.99
Acquisition Visits Site 10% 100 $9.90
Engagement Signs up for newsletter 5% 5 $198.00
EngagementVisits SV Immersion Accelerator Payment Page 60% 3 $330.00
GOAL: Monetization Registration 66% 2 $500.00
Then...
Brainstorm ways to get more people to sign up.
More aggressive popup?
Shorter sign-up form?
More sales-y copy?
Conduct an A/B test. Measure results.
Make sure they’re statistically significant!
PROCESS
Pick a North Star MetricAirbnb = nights bookedFacebook = MAURevenue = P * Q. North Star is your Q.
Resource the ProcessSelect a Growth Lead to own North Star metric and run weekly growth planning sprint meetings
Brainstorm and Prioritize
Run a company-wide 1 hr+ brainstorm session to seed an idea backlog
Rank ideas by ICE
Impact
How much do we think this will make us?
Confidence
How confident are we in that assessment?
Ease
How much work will it take to do this?
Commit and Kick-OffCalendar and launch highest-priority tests
Manage Progress with Weekly Growth Sprint Meetings
15 min: North Star metric review10 min: Review last week’s testing sprint (any issues?)15 min: Key lessons learned from analyzed tests15 min: Select tests for this week’s sprint5 min: Check growth of ideas backlog
http://www.slideshare.net/seanellis/building-the-ultimate-full-company-growth-team?ref=https://growthhackers.com/slides/building-the-ultimate-full-company-growth-team
HOW MUCH TO PAY
Work Backwards Through the FunnelNote: All #s are for discussion purposes only
Don’t pay more than $0.99/1,000 people! (~$0.99 CPM)
Stage StepConversion Rate # People Est Value
AwarenessSees tweet about Reboot Accelerator 1,000 $0.99
Acquisition Visits Site 10% 100 $9.90
Engagement Signs up for newsletter 5% 5 $198.00
Engagement
Visits SV Immersion Accelerator Payment Page 60% 3 $330.00
GOAL: Monetization Registration 66% 2 $500.00
IDEAS & RESOURCES
Tactics that Can Help with Each Funnel Stage
Awareness: Customer sees your message PRSEOSocial Media
Acquisition: Customer visits your site Test different paid channelsTest channel messaging
Engagement: Good 1st experience on site Optimize contentInvest in engaging design
Retention: Customers come back Email newsletterDiscounts on future purchasesExpanded product line
Referral: Each customer brings you at least 1 more Referral program
Revenue: $$$ Optimize sign-up flowEmail nurture campaigns
Free Idea from Me
Influencer marketing: Create an event for your category and invite thought leaders with significant social media followings and popular email lists to speak. They will promote the speaking gig on their channels. Win-win!
Who to choose: Use your funnel to back out how big a social audience someone will have to have to make it worth your contacting them.
Resources
Testing CalendarSimple Sample FunnelSignificance Calculator
Further reading:● Dave McClure’s Startup Metrics for Pirates● Sean Ellis: Building the Ultimate Company Growth
Engine
Useful Tech
Ideas: SimilarWeb and SpyFuOn-Site Testing: OptimizelyLanding Page Testing: UnbounceTesting Onboarding Process: SparkPageGrowth Process Tracking: Growth Hackers Projects
