growth hack for startups
TRANSCRIPT
![Page 1: Growth hack for startups](https://reader031.vdocument.in/reader031/viewer/2022020307/55a7afbf1a28ab55418b4784/html5/thumbnails/1.jpg)
©2015 StratAlign Group 1
Growth Hacking For Lean Startups
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©2015 StratAlign Group
Agenda
• Lean startup 101
• Why growth hacking?
• Growth hacking tools
• Growth hacking concepts
• How to hack growth
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©2015 StratAlign Group
LEAN STARTUP 101
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©2015 StratAlign Group
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©2015 StratAlign Group
Steve Blank’s Stages
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©2015 StratAlign Group
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©2015 StratAlign Group
Problem/Market Fit
Solution/Market Fit
Product/Market Fit
Revenue Growth
Profit
![Page 8: Growth hack for startups](https://reader031.vdocument.in/reader031/viewer/2022020307/55a7afbf1a28ab55418b4784/html5/thumbnails/8.jpg)
©2015 StratAlign Group
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
![Page 9: Growth hack for startups](https://reader031.vdocument.in/reader031/viewer/2022020307/55a7afbf1a28ab55418b4784/html5/thumbnails/9.jpg)
©2015 StratAlign Group
Problem/Market Fit
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©2015 StratAlign Group
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
Revenue Growth Profit
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©2015 StratAlign Group
Solution/Problem Fit
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©2015 StratAlign Group
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
Revenue Growth Profit
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©2015 StratAlign Group
Product/Market Fit
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©2015 StratAlign Group
Problem/Market Fit
Solution/Market Fit
Product/Market Fit
Revenue Growth Profit
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
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©2015 StratAlign Group
Revenue Growth
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©2015 StratAlign Group
Problem/Market Fit
Solution/Market Fit
Product/Market Fit
Revenue Growth Profit
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
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©2015 StratAlign Group
Profit
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©2015 StratAlign Group
WHY GROWTH HACKING?
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©2015 StratAlign Group
Problem/Market Fit
Solution/Market Fit
Product/Market Fit
Revenue Growth
Profit
![Page 20: Growth hack for startups](https://reader031.vdocument.in/reader031/viewer/2022020307/55a7afbf1a28ab55418b4784/html5/thumbnails/20.jpg)
©2015 StratAlign Group
You discovered a target market who has that problem
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©2015 StratAlign Group
You have found a really painful problem
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©2015 StratAlign Group
You have created a solution that customers tell you really solves the problem
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©2015 StratAlign Group
So, you build your MVP and invite your first customers to use it
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The customers sign up and become activated
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©2015 StratAlign Group
Then what happens?
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©2015 StratAlign Group
Nothing
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©2015 StratAlign Group
So, you buy some AdWords and get more sign ups. Then, what happens?
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©2015 StratAlign Group
0
0.2
0.4
0.6
0.8
1
1.2
1 2 3 4 5 6 7
Product Usage
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Why?
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©2015 StratAlign Group
Your product sucks
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©2015 StratAlign Group
The Trough of Sorrow
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©2015 StratAlign Group
Most startup founders
focus heavily on product but
most of a startup's risk lies in distribution
Dave McClure
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©2015 StratAlign Group
Marketing
CustomerDevelopment
Data
GrowthHacker
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©2015 StratAlign Group
Growth Hacking Tools
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Install Analytics
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Google Analytics is Worth What You Pay For It
People, not page views, buy software
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Analytics Tools
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You will want to be able to A/B test, track opens and click through’s
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Triggered Email
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Chat
Talk to your customers in real time
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SMSIf your customer is a Millennial, they prefer texting
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Website Tours
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©2015 StratAlign Group
App Notifications
If you have a mobile app, you can use push notifications to engage your customers
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©2015 StratAlign Group
In App Interventions
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GlueApps that put all the pieces together
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Growth Hacking Concepts
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©2015 StratAlign Group
AcquisitionBring prospective customers to your site
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ActivationSign up
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©2015 StratAlign Group
RetentionEngage users
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Referral
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©2015 StratAlign Group
A/B testing
LinkBaitPro
Get Started
LinkBaitPro
Get Started
A B
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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
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Events
1. Login
2. Upload Photos
3. Tag Photos
4. Share Photos
5. Comment on Others Photos
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Don’t Focus on Acquisition When Activation and Retention are Low
Visited Site Signed Up Activation Billed
2,177
14 3 1
0.6% 21.4% 33.3%0.0%
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Cohort Analysis
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Track Events Across Cohorts
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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.
![Page 59: Growth hack for startups](https://reader031.vdocument.in/reader031/viewer/2022020307/55a7afbf1a28ab55418b4784/html5/thumbnails/59.jpg)
©2015 StratAlign Group
Post Launch Stages
1. Product/Market Fit
USER
DISENGAGE
D USER
ENGAGED
USER
REACTIVAT
ETRIAL OVER
PAYING
CUSTOMER
DISSATISFI
ED
RESOLUTIO
N
DISENGAGE
D
REACTIVAT
E
CANCEL CANCELACCOUNT CANCELLED OR
BILLING INFO EXPIRES
Free userdisengagement
PaidConversion
SupportData
ReactivatonRate
FreemiumChurn
TrialAbandonment
Rate
Disengagement
![Page 60: Growth hack for startups](https://reader031.vdocument.in/reader031/viewer/2022020307/55a7afbf1a28ab55418b4784/html5/thumbnails/60.jpg)
©2015 StratAlign Group
Post Launch Stages
1. Product/Market Fit
2. Revenue Growth
USER
DISENGAGE
D USER
ENGAGED
USER
REACTIVAT
ETRIAL OVER
PAYING
CUSTOMER
DISSATISFI
ED
RESOLUTIO
N
DISENGAGE
D
REACTIVAT
E
CANCEL CANCELACCOUNT CANCELLED OR
BILLING INFO EXPIRES
Free userdisengagement
PaidConversion
SupportData
ReactivatonRate
FreemiumChurn
TrialAbandonment
Rate
Disengagement
PAID DIRECT SEARCH WOM
Customer Acquisition Cost
VISITOR
FREEMIUM/
TRIAL
OFFER
ENROLLME
NT
Long funnel health
INHERENT
VITALITY
INVITE
OTHERS
Viral coefficientViral rate
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©2015 StratAlign Group
Post Launch Stages
1. Product/Market Fit
2. Revenue Growth
3. Profit
USER
DISENGAGE
D USER
ENGAGED
USER
REACTIVAT
ETRIAL OVER
PAYING
CUSTOMER
DISSATISFI
ED
RESOLUTIO
N
DISENGAGE
D
REACTIVAT
E
CANCEL CANCELACCOUNT CANCELLED OR
BILLING INFO EXPIRES
Free userdisengagement
PaidConversion
SupportData
ReactivatonRate
FreemiumChurn
TrialAbandonment
Rate
Disengagement
PAID DIRECT SEARCH WOM
Customer Acquisition Cost
VISITOR
FREEMIUM/
TRIAL
OFFER
ENROLLME
NT
Long funnel health
INHERENT
VITALITY
INVITE
OTHERS
Viral coefficientViral rate
UPSELLING
CAPACITY
LIMIT
FORMER USERS FORMER CUSTOMERS
Tiering
UpsellingRate
Unpaid Churn Rate Paid Churn Rate
User Lifetime Value Customer Lifetime Value
![Page 62: Growth hack for startups](https://reader031.vdocument.in/reader031/viewer/2022020307/55a7afbf1a28ab55418b4784/html5/thumbnails/62.jpg)
©2015 StratAlign Group
Post Launch Stages
1. Stickiness
2. Traffic
3. Revenue
PAID DIRECT SEARCH WOM INHERENT
VITALITY
Customer Acquisition Cost
VISITOR
FREEMIUM/
TRIAL
OFFER
ENROLLME
NT
USER
INVITE
OTHERS
DISENGAGE
D USER
ENGAGED
USER
REACTIVAT
ETRIAL OVER
PAYING
CUSTOMER
UPSELLING
CAPACITY
LIMIT
DISSATISFI
ED
RESOLUTIO
N
DISENGAGE
D
REACTIVAT
E
CANCEL CANCELACCOUNT CANCELLED OR
BILLING INFO EXPIRES
FORMER USERS FORMER CUSTOMERS
Long funnel health
Free userdisengagement
PaidConversion Tiering
UpsellingRate
SupportData
ReactivatonRate
FreemiumChurn
TrialAbandonment
Rate
Disengagement
Unpaid Churn Rate Paid Churn Rate
User Lifetime Value Customer Lifetime Value
Viral coefficientViral rate
![Page 63: Growth hack for startups](https://reader031.vdocument.in/reader031/viewer/2022020307/55a7afbf1a28ab55418b4784/html5/thumbnails/63.jpg)
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• Measure engagement
• DAU/WAU –What does active mean?
• Segment
• New Functionality
• Does it improve stickiness?
• How do we measure that?
• Lazy registration
Stickiness
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10X Product Launch
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How to Hack Growth
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It’s ALL About Onboarding
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1. Find Out Why
Talk to your customers
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©2015 StratAlign Group
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?
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Get a Baseline
Signed Up Login Uploaded Photos
TagPhotos
2,177
366
413
16.8% 11.2% 7.3%0.0%
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Create a Dashboard
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3. Create an Intervention and Do It
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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,
James
Surprise Personal Email
![Page 75: Growth hack for startups](https://reader031.vdocument.in/reader031/viewer/2022020307/55a7afbf1a28ab55418b4784/html5/thumbnails/75.jpg)
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Bad
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
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The Last Email You Will Ever Send
A lot has changed since you left – so we'd like to offer you another FREE trial!
Come back to Netflix and enjoy newly added TV shows & movies – for free. Now including Wii, PS3, Xbox 360,
iPhone, iPad, Android and more.
Questions? 1-888-357-1516 / 24 hours a day
![Page 77: Growth hack for startups](https://reader031.vdocument.in/reader031/viewer/2022020307/55a7afbf1a28ab55418b4784/html5/thumbnails/77.jpg)
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In App Intervention
![Page 78: Growth hack for startups](https://reader031.vdocument.in/reader031/viewer/2022020307/55a7afbf1a28ab55418b4784/html5/thumbnails/78.jpg)
©2015 StratAlign Group
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4. Perform a Cohort Analysis
![Page 80: Growth hack for startups](https://reader031.vdocument.in/reader031/viewer/2022020307/55a7afbf1a28ab55418b4784/html5/thumbnails/80.jpg)
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5. Analyze the Results
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6. D.C. al Fine
Create a Hypotheses
Measure the Results
Test the Hypotheses
With an Intervention
Proceed, Pivot, or
Punt
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Questions