NPS Driven Growth or How to grow your startup w

@nilanp

NPS driven growth!OR!

How to grow without spending a TON on marketing!

!

Nilan Peiris!VP Growth TransferWise

@nilanp

Startups

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Startups Tequila

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Helped startups get to traction

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

@nilanp

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 lever!2. Systemically improve your experience for your customers through curating supply!3. Once product is working, focus on building NPS to drive growth!4. 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 product!2. Availability of product on right date / size!3. Availability at right price point!4.Marketing bullshit (CRO)!

Drivers of conversion rate

Start with one market and build from there

@nilanp

Learn how to systemically acquire supply!

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Understand your value to suppliers!

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Summary!1. Acquiring supply solves the

chicken / egg problem!2. Focus on availability of product

at price point!3. 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

@nilanp

CookIt optimises recipes to keep customers come back for more

Amazon’s!recommendation algorithm curates their supply optimising for conversion rate

HouseTrip’s recommendation algorithm measures quality of stay

Facebook’s news feed optimises for engagement

Uber takes into account driver and passenger quality when you hail a cab

• Prioritise !

1. Systemically improve your customer experience by improving the quality of supply!2. 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 with!no significant issues !

It works ! !(But barely)

It works with!no significant issues !

It works. Wow that was slick

It works ! !(But barely)

It works with!no 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• Meeting &

exceeding expectations!

• Product features

• Narrative!• Reason for

sharing!!

!

You can’t copy that !

ONLY focus on NPS once the product is

working

Summary!1. Focus on NPS and you will grow!2. Understand the drivers of NPS

and align your product and marketing organisation behind this

!

!

Once product is growing add

marketing

!

!

PRINCIPLE 4

!

!

Once unit economics are strong explore

marketing

!

!

PRINCIPLE 4

1. Performance marketing!

2. Viral growth!3. 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 programs!Crazy social sharing

Referral programs = tracked Word of

Mouth

Focus!!

Give away value!NOT money!

Focus!!

=

What amplifies viral growth rate ?

Frequency of use!Relevance!

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 growth!4 principles

1. Supply is your biggest scaling lever!2. Systemically improve your experience for your customers through curating supply!3. Once product is working, focus on building NPS to drive growth!4. Once product is growing add marketing

@nilanp

@nilanp