Distribution Hacking 101 - How to Achieve Growth

Distribution Hackingmberman84@gmail.com

Distribution Hacking is…

Data-driven paid advertising

Paid AdvertisingWORKS(When done

methodically)

Paid advertising is the easiest way to acquire new users

Many startups don’t do paid advertising

Let’s fix that

Distribution

HackingFramework

A methodology for measuring, experimenting, and optimizing

user acquisition

The distribution hacking framework is…

CPACost Per Acquisition

Key Metrics

LTVLifetime Value

CPACost Per Acquisition

Our Goal

LTVLifetime Value

<

CPACost Per Acquisition

Our Goal

LTVLifetime Value

<+

Scale

$8 CPA

Example…

$20 LTV

=$12 RPU

Revenue Per User

-

$8 CPA

Example…

$20 LTV

=$12 RPU

Revenue Per User

-

+ Scale

Let’s dive in…

Six Steps

Step 1:

Implement analytics & testing tools

Example…Three step conversion funnel

SignupAdd to Cart Checkout

(Conversion Goal)

Example…

Track each step of the funnel

B20%

A30%

Example…

And split test

When you have data…

You can optimize!

Analytics

Split Testing

Step 2:

Define target customer

Pre vs. PostProduct Market Fit

Pre-PMF

Customer Discovery

Post-PMF

Customer Scaling

Pre vs. PostProduct Market Fit

Whois your

customer?

AgeGenderGeographyIncome

Demographic factors

Marital StatusEducationOccupationInterests

Critical Question:

What is your customer’s persona when they are using

your product?

People have multiple personas

Personal vs. Business

Step 3:

Define conversion goal & funnel

Conversion goal is a single event such that when a user completes it, they are considered

a customer.

Sign upLeadOpt in newsletterSaleSubscription

Examples…

Conversion funnel is the path your customers take to complete the

conversion goal.

Example…

Signup Add to Cart Checkout(Conversion Goal)

10,000 users

40% 20% 5%

500 customers

Step 4:

Hypothesize acquisition channel

Think about demographic

+ persona

Where do customers “hang out” online?

Step 5:

Setup ads & execute experiment

Learn each ad platform that

you want to use

Your budget should be enough to accumulate

statistically significant data

Simple imagesClear value propositionSingle call-to-action

General tips…

Step 6:

Optimize

Potential for success?

YES NOOptimize

Step 4

CTR, Cost

Conversion Rate

What to optimizeAdvertisem

entLanding Page

Copy

Call to Action Image

Ad optimization

Landing page optimizationDesig

nCall to Action

Value Prop

Fields

Step 1: Implement analytics & testing toolsStep 2: Define target customerStep 3: Define conversion goal & funnel--------------------------------------------Step 4: Hypothesize acquisition channelStep 5: Setup ads + execute experimentStep 6: Optimize or return to Step 4

Recap…

THANK YOUmberman84@gmail.com