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NPS driven growthOR

How to grow without spending a TON on marketing

Nilan PeirisVP Growth TransferWise

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Startups

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Startups Tequila

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X

Opinion is an outcome of experience

Back to traction

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Revenue

Revenue

Revenue

Death Zone

Revenue

How do I get out of the death zone ?

A typical founder conversation

Anonymised using characters from the

Wire

x

GROWTHDude - we’re running outta cash in 6 months

GROWTH

Lets go see the Man - he can give us funding

Introducing the Man

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GROWTH

GROWTH

Come back when you have traction…

GROWTHWe need to get traction, we need to find customers, you know what we need ?

GROWTHMarketing

GROWTHWord. Marketing is what we need… but marketings expensive. You know what we need ?

GROWTHMoney… lets go see the Man.

GROWTH

How do I get out of the death zone ?

4 principles for NPS driven growth

@nilanp

1. Supply is your biggest scaling lever2. Systemically improve your experience for your customers through curating supply3. Once product is working, focus on building NPS to drive growth4. Once product is growing add marketing

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Supply is usually your biggest scaling lever

PRINCIPLE 1

Focus on supply or customers first ?

Chicken Egg

OR

Chicken Egg

OR

I came first

SUPPLY CAME FIRST

SUPPLY IS THE BIGGEST DRIVER OF YOUR CONVERSION

RATE

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eDrivers of conversion rate

Availability of product

I WANT A T SHIRT

Availability of in right size / date

I WANT A MEDIUM T SHIRT

Availability at price point

ITS GOT TO BE UNDER £30

MARKETING BULLSHIT (CRO)

1. Availability of product2. Availability of product on right date / size3. Availability at right price point4.Marketing bullshit (CRO)

Drivers of conversion rate

Start with one market and build from there

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Summary1. Acquiring supply solves the

chicken / egg problem2. Focus on availability of product

at price point3. Figure out how to scalable

acquire supply and get clear over time on your value proposition to suppliers

4. Focus on growth through systemically improving your supply base @nilanp

PRINCIPLE 2

Systemically improve the experience of your customers

Practical adviceFocus on single

userscredit: Klinger.io

Figure out your supply curation

metrics

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HouseTrip’s recommendation algorithm measures quality of stay

Facebook’s news feed optimises for engagement

1. Systemically improve your customer experience by improving the quality of supply2. Focus on outcome metrics for your customers

Summary

Focus on NPS and your business will

grow

PRINCIPLE 3

Would you recommend us to your friends?

1 2 3 4 5 6 7 8 9 10

Detractors Neutral Promoters

Would you recommend us to your friends?

1 2 3 4 5 6 7 8 9 10

Detractors Neutral Promoters

TotalPromoters - Detractors

= NPS

If promoters > detractors you WILL

grow

N.B. This is fucking hard.

It works ! (But barely)

It works ! (But barely)

It works withno significant issues !

It works ! (But barely)

It works withno significant issues !

It works. Wow that was slick

It works ! (But barely)

It works withno significant issues !

It works. Wow that was slick

You’ve just blown my socks off that was fucking incredible

ONLY focus on NPS once the product is

working

Every app on your phone has an insanely high NPS

What drives recommendation ?

Rational Emotional

Rational Emotional

• Product • Brand

You can’t copy that !

ONLY focus on NPS once the product is

working

Summary1. Focus on NPS and you will grow2. Understand the drivers of NPS

and align your product and marketing organisation behind this

Once product is growing add

marketing

PRINCIPLE 4

1. Performance marketing

2. Viral growth3. Inbound marketing

Money in Money out

1. Performance marketing

Money in < Money out

Practical advice

When to focus on performance marketing ?

1. If your unit economics are better than anyone else in the industry

2. You can target relevant traffic

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Viral growth

Viral growth =Word of Mouth

Referral programsCrazy social sharing

Focus

Give away valueNOT money

Focus

=

What amplifies viral growth rate ?

Frequency of useRelevance

Shareability

Practical advicePre-requisites

1. Have a great product 2. Have your first 1000

customers 3. Customers are part of high

trust networks with other target customers

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Inbound marketing

Build acquisition into your app

NPS driven growth4 principles

1. Supply is your biggest scaling lever2. Systemically improve your experience for your customers through curating supply3. Once product is working, focus on building NPS to drive growth4. Once product is growing add marketing

@nilanp

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