[growthhacker conference '16] willix halim, svp growth at freelancer.com: creating a full...
TRANSCRIPT
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Create A Full Company Growth Culture
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POP QUIZ, HOT SHOT….
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HOW MUCH DO THESE UNICORNS SPEND ON MARKETING?
YoY Growth: 41% MarketCap: $USD 1.6Billion
Founded: 2005
YoY Growth: 45% MarketCap: $USD 1.9Billion
Founded: 2006
YoY Growth: 44% MarketCap: $USD 1Billion
Founded: 2006
POPQUIZ
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104%of Revenue
Founded: 2005
54%of Revenue
Founded: 2006
80%of Revenue
Founded: 2006
HOW MUCH DO THESE UNICORNS SPEND ON MARKETING?
POPQUIZ
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How much does UBER spend?
POPQUIZ
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How much did Freelancer.com spend in 1H15?
POPQUIZ
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AVOID THE DEATH SPIRAL OF PAID MARKETING WHERE LTV < CPA
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Where should your growth come from?
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GROWTH-DRIVEN COMPANY CULTURE
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DATA SCIENCE
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FUNNEL OPTIMIZATION
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GROWTHDos and Dont’s
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FREELANCER PRINCIPLE #1
#1:THE TEAM
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LET’S START WITH THE TEAM
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Product Driven
ALWAYS HIRE THE BEST!!!•
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Hire People Smarter Than You
A hires A, B hires C, C hires D …
DO NOT EVER COMPROMISE ON TALENT!!!
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METRIC/GROWTH/PRODUCT-DRIVENTEAM
ProductManager
DataScientist
2-3 SoftwareEngineersEngineering TeamLead
Designer
1-2 Quality Assurance(QA)
Front EndDeveloper
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THE PRODUCT GROUPS•
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POTUSMatchMaking
Office
Collaboration
Search & Discovery
The Freelancer Team
Membership
Special Task Force
International Growth
Contest
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Education
Freemarket
Analytics Infrastructure
Software Infrastructure
Platform Engineering
API & Services
Local Jobs
Mobile
Employer Success
Customer Experience
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Talent
Payments
Trust & Safety
Community & Showcase
Chat
Escrow
Warrior Forum
AI Team
SPEED
Product Driven
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They own these metrics: Projects, Users & Traffic
They are in charge of justifying their marketing budget (CPA < LTV)
It is led by an engineer with PhD in NLP & University Medallist in Computer Science
P.O.T.U.S.POTUS stands for Projects, Organic, Traffic & User Growth. The goal is simple: to accelerate awareness about Freelancer.com by growing Projects, Traffic & Freelancers. We achieve this by amplifying word of mouth between users, driving more engagement on our users by sending more
relevant and personalised emails, SEM, SEO, Landing Page Optimisation, new ways to hire freelancers and many more.
Product Driven
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freelancer.com is revolutionising the way people work and get work done. We want to help our
millions of employers find the best freelancers to work with on any tasks they need done. There is a fixed supply of freelancers, and as a result, marketplace matchmaking can be very difficult
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They are responsible for key metrics such as: award rate, accept rate & completion rate
When these metrics go down/up, we know who to go to (READ: RESPONSIBILITY & TRANSPARENCY)
3 Data Scientists in the team•
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To understand completely how/why people hire and award freelancers To understand the current supply and demand of our marketplace
AI-based recommender system to make sure we know who the best freelancers for related
jobs are
MatchMaking
Product Driven
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GROWTH-DRIVENTEAMS
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• Transparency: All metrics incl. revenue is accessible for everyone in the company
• Monthly/Quarterly goals need to be in quantifiable metrics
• Every member in the team is accountable for their team’s metrics. Performance is strongly rewarded based on that.
• SIT THE PRODUCT TEAM TOGETHER (NOT FUNCTIONALLY) !!!
Growth-Driven Teams
Growth Driven
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GROWTH-DRIVENTEAMS
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• 30% University Medalists
• 50% PhD
• Mechatronics Engineers
• Quantum Physicists
• Mechanical Engineers
FREELANCER DATA SCIENCE TEAM
Product Driven
• Machine Learning Experts
• Electronic Engineers
• Australia’s Best Cash Game Poker Player
• Natural Language Processing Experts
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DO NOT HIRE DONALD!!!Our website is shit, we have to make it more usable! OK, how? Do we have data to prove this? What metric defines usability?
I can’t code. I can’t query the database. Can an engineer find out how many users we have inAustralia?NOPE. They’re busy.
We need our campaign to go viralWhat defines virality? How much revenue will it make? Where do you think the problem is?
ReadsWired.
Oops, is it 5pm already? I have to go to my hairdressing appointment!
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DO HIRE WARREN BUFFETT!• CompSci, Maths, Economics, Stats or Engineering Degree
• Dashboard & data are their source of truth that they look at and refer to regularly
• They also constantly query and add their own stats
• They can visualise and fit their core funnel perfectly with DATA
• Can code (AND NO HTML IS NOTCODING)
• Always formulate his/her own hypothesis (mostly data-backed) , code and validate it him/herself
• SQLGurus
• Reads HackerNews
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• WE LOVE HIRING AWESOME GRADUATES•
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Freelancer TLs lecture in universities
Targeted recruitment email to top engineers
Hackathon for Graduates
Referrals
OUR HIRING CHANNELS
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#1: DON’T BE LIKE MOST COMPANIES!MOST COMPANIES ONLY TRACK THREE THINGS
Traffic Users Revenue
Phase 1 Phase 2 Phase 3 Phase 4 Phase 5
Get Traffic ? Get
Users ? Profit
FREELANCER PRINCIPLE #1
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TRACK EVERYTHING!!!
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TRACK YOUR FUNNEL!!!FREELANCER PRINCIPLE #1
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TRACK YOUR FUNNEL!!!
CPA < LTV
FREELANCER PRINCIPLE #1
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ATTRIBUTIONANALYSIS• FIRST INTERACTION
• LAST INTERACTION
• ASSISTED CONVERSION
• LINEAR ATTRIBUTIONMODELLING
• TIME DECAY
• POSITION BASED
FREELANCER PRINCIPLE #1
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HOW SHOULD YOU TRACK???• Google Analytics• Freelancer has its own internal tracking tool: QTS -> RedShift• Kissmetrics? Mixpanel? Why don’t you build your OWN?
FREELANCER PRINCIPLE #1
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TRACK YOUR COMPETITORS!!!
FREELANCER PRINCIPLE #1
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CASE STUDY: SHOWPO.COM•
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#ITEMS SOLD
#ITEMS LISTED
$REVENUE MADE
BEST-SELLING ITEMS
Many more
FREELANCER PRINCIPLE #1
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CASE STUDY: SHOWPO.COM•
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#ITEMS SOLD
#ITEMS LISTED
$REVENUE MADE
BEST-SELLING ITEMS
Many more
FREELANCER PRINCIPLE #1
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MOSTCOMPANIES DO NOT TEST
FREELANCER PRINCIPLE #1
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WE HAVE TO A/B TEST
FREELANCER PRINCIPLE #1
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WE HAVE TO A/B TEST••
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Correlation & causation can now be tested easily Always form hypothesis and test it by linking it to success metrics
• Almost all things have to be A/B tested including your new featuresA/B testing should be done on multiple metrics – NOT just one metricMobile testing is a bit harder but we can still do it
FREELANCER PRINCIPLE #1
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FREELANCER PRINCIPLE #1
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#2: Conversion Rate is Everything and Everywhere
FREELANCER PRINCIPLE #2
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#2:CVR is everywhere• Every pages/screens in your website/app should have
at least one purpose / CTA. Hence, you should plot all your pages’ CVR
• Lowest hanging fruit for growth is to improve your CVR
• Doubling your conversion rate will halve your CPA
FREELANCER PRINCIPLE #2
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CASE STUDY: AUTO-TRACK FORM
FREELANCER PRINCIPLE #2
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#3: BE FAST!!!
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FAST IS ALWAYSGOOD• Page Speed (Refer to RAIL)
FREELANCER PRINCIPLE #3
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What about speed to perform CTA?• How long does it take••••••••
From discovery -> add to cart in eBay.com To fill the check-out formFrom add to cart -> successful payment To fill the sign-up formTo list your items in ebay.com To sell your first itemTo buy your first item etc
FREELANCER PRINCIPLE #3
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FAST IS ALWAYSGOOD• Speed as a Habit should also apply in product development
• SPEED IS YOUR ASSET. IT IS HOW YOU WIN!!!
• A good plan violently executed now is better than a perfect plan next week– General George Patton
• READ: SPEED AS A HABITfrom Dave Girouard
FREELANCER PRINCIPLE #3
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INTRODUCING GROWTH SPRINT500STARTUP
FREELANCER PRINCIPLE #3
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RULES OF GROWTH SPRINT
FREELANCER PRINCIPLE #3
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Generate 50+ experiments for the product• 50 in 50mins
Group experiments intoAARRRR
• Determine the ICE score for each experiment (with the team in a planning meeting)•
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Impact (I) = Estimate of how impactful a feature will be (scale of 1-10 with 10 being the most impactful)Confidence (C) = How confident you are that the experiment will achieve the estimated impact (scale of 1-10 with 10 being the most confident)Effort (E) = The estimated amount of effort to develop and produce the experiment (scale of 1-10 with 10 being the least amount of effort)
• Rank experiments by ICE score to determine the experiments most worthwhile to tackle during the sprint
• Ensure with the development team that all experiments are doable in one day (not strictly necessaryfor all growth sprints). THREE SPRINTS THREE EXPERIMENTS EACH DAY -> 30 EXPERIMENTSIN TWO WEEKS
PROCESS
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PROCESS
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AT FREELANCER,EVERY QUARTER, WE HAVE
ONE FULL MONTH OF
GROWTH-FOCUSSED TESTS
AND TWO MONTHS OF
DOING THE RIGHT THINGS
RIGHT
FREELANCER PRINCIPLE #3
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#4: GET THE MACHINES TO HELP YOU!!!
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Machine Learning
FREELANCER PRINCIPLE #2
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Amazon Recommender System
Freelancer Growth Principle #4
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Machine Learning at Freelancer.com
Freelancer Growth Principle #4
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Freelancer’s machine learning based fraud detection algorithm - Skynet
Freelancer Growth Principle #4
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IN SUMMARY:• KNOW YOUR AND YOUR COMPETITORS’METRICS!!! DATA ALLOWSTRANSPARENCY.
• WHY ARE WE DOING IT? WWDS – What Does The Data Say?
• WHAT ARE YOUR SUCCESS METRICS? Always A/BTest!
• EXECUTE FAST AND FAILFAST!!!
• ALSO GET THE MACHINES TO HELP YOU WITH THE DATA!!!
Freelancer Growth Principle #4
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