sej summit 2015: marketing that moves the bottom line: growth hacking by morgan brown
Post on 14-Jul-2015
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• 15 year startup growth veteran
• Wrote Startup Growth Engines with Sean Ellis
• My hobby is studying fast growing companies
#SEJSummit #Searchmetrics
3TAKEAWAYS
1. Growth hacking complements marketing – not a replacement
2. Use data to find leverage points and double down on those
3. Rapid, continuous experimentation key to growth – no silver
bullets
#SEJSummit #Searchmetrics
“Most startups don’t fail at building a product. They fail at acquiring customers.”
Growth is Everything
– Gabriel Weinberg
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• McKinsey & Co. studied 3,000 software companies
with different growth rates
• High-growth companies deliver 5x greater returns than
medium growth companies
• Supergrowers (CAGR > 60% at $100m mark) were 8x
more likely to reach $1B
• Increase in growth rates drive 2x the market
capitalization as margin reduction in companies < $4B
• No correlation between cost & growth rates
Growth is Everything
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What is growth hacking?
A cool-sounding euphemism for making the doer feel good about using the same old sleazy marketing tricks.
– David Heinemeier Hansen, 37 Signals
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What is growth hacking?
A … focus on understanding your users and how
they discover and adopt your products, [so] you
can build features that help you acquire and retain
more users, rather than just spending marketing
dollars.– Josh Elman, Greylock. Frmr. Twitter, Facebook & LinkedIn
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$0
$20
$40
$60
$80
$100
$120
$140
$160
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
3.5x
US Online Ad Spend
per User
Extreme Competition for Attention
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Extreme Competition for Attention
0
20
40
60
80
100
120
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
WOMEmail
MySpace
Craigslist
iOS
Android
James Currier
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Use a Growth Hacking Playbook
• Experiment with all available growth levers
• Understand what’s driving growth, test to improve it
• Heavy focus on product and optimization
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The Dropbox Growth Story• Freemium reduced allowable CPA
• Natural advantages to grow with collaboration
and sharing
• Catalyze sharing with double sided referral
program
• Optimize conversions on sharing loops
• 300 million users with no traditional
marketing
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B2C or B2B
• Growth hacking isn’t just for consumer-focused
companies.
• B2B often requires integration with sales process.
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Finding Your Own Growth Levers
• Areas of exploration
• Process, team and tools
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SOME AREAS OF EXPLORATION
• Platform Integrations
• User-Get-User
• Free Tools
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Hotel Tonight’s 3G Epiphany
• Discover the why can lead to breakthroughs
in growth
• HotelTonight found poor data connections
drove conversion rates UP.
• WHY?
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Success Data: AirBnB’s Pro Photos
• Discovered that listings with high-
quality photos received
2-3x bookings
• Invests in professional photography
• Booking activity explodes as desire
increases
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Twitter’s Follow 30 People
"Once a user follows 30 people, they're more or less active forever.”
– Josh Elman, Greylock
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Experimentation Is Key To Success
• Generate many ideas for experiments
• Prioritize by impact, confidence & ease
• Balance high impact & high probability tests
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Growth Team Often Needed
• Multi-disciplinary
• Cross functional
• Evangelize experimentation culture
“Growth team” complements existing marketing team
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HELPFUL TOOLS
• Analytics — Identify drop-off points and under-performing pages (e.g. Google
Analytics, KISSMetrics)
• Qualitative Insights — Uncover the why behind the numbers (e.g. Qualaroo,
SurveyMonkey)
• A/B Test — Find better performing combinations to drive conversion rate (e.g.
Optimizely, Unbounce)
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Relentless Execution of Growth Processes
1. Ideas
2.Prioritize
3.Test4.Analyze
5.Optimize
#SEJSummit #Searchmetrics
3TAKEAWAYS1. Growth hacking complements marketing – not a
replacement
2. Use data to find leverage points and double down on
those
3. Rapid, continuous experimentation key to growth – no
silver bullets
#SEJSummit #Searchmetrics
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