Text of Startup Analytics and Figuring out Your Engine for Growth
Growth Hacking Startup analytics and guring out your engine for growth
Because heres what usually happens..
You spend months and months building a great product.
Anticipate a huge launch..
But, when you actually do, nothing happens.
Lets say you end up with a feature in TechCrunch.
Which gets you 10,000 new signups. day 1 day 2 5 users 10,000 users
Not if no one comes back.. day 1 day 2 5 users day 30 10 users 10,000 users
Im Conrad Wadowski, a Partner at GrowHack which works with venture backed companies. I also run an online school which brings together leading practitioners and resources to teach your team user growth. Some background
So, what the heck is GROWTH HACKING?
A growth hack is a meaningful spike to a metric. day 1 day 2 5 users 10,000 users
50,000 users What really matters is making it repeatable. day 1 day 2 day 30 5 users 10,000 users
Growth hacking is the tactics and best practices for growth.
Think of it like youre assembling an engine.
..but youre missing the instruction manual. ? the manual
How do you put together the pieces? Email Marketing UX SEO Behavioral Psychology PPC PR
Try a bunch of stuff?
Try a bunch of stuff? Ask other people?!
Try a bunch of stuff? Ask other people?! The interwebs?!?
Try a bunch of stuff? Ask other people?! The interwebs?!? Build more features?!?!
All places to nd ideas but..
SEO Behavioral Psychology Email Marketing PPC UX Analytics Analytics brings things together PR
Its a skillset many companies dont start with.
And helps you be systematic about learning whats happening.
There are actually are a few engines to build and tune. #1Product Engine #2 Growth Engine +
Without a product engine to create value, its hard to grow.
For more here see Eric Reis, Steve Blank and Lean Startup Machine. #1Product Engine
Lets take HubSpot as an example #1Product Engine #2 Growth Engine + Marketing Automation Tools Inbound Marketing and Sales
Sometimes you build within a distribution channel #1Product Engine #2 Growth Engine iOS App Apple App Store =
Each approach carries its own risks and rewards.
A practical framework for growth. (adapted from Dave McClures AARRR metrics)
Pick one of these areas to focus on at a time.
Acquisition source person comes from Search, Social,WOM,Viral
Acquisition source person comes from Search, Social,WOM,Viral Activation getting someone quickly to a must have experience Your happy event
Acquisition source person comes from Search, Social,WOM,Viral Activation getting someone to a must have experience Your happy event Retention Getting someone back to the experience Email, push notifs, messaging, user generating content
Discover your one point of highest leverage.
It looks like this..
Free channels Acquisition source a person comes from Lets say one of your friends told you absolutely had to download SnapChat. Acquisition Source: Word of Mouth
Free channels Activation getting someone to an must have experience After you downloaded SnapChat you got to see the stupid video they sent you. Activation Event: Watching a video
Free channels Retention Getting someone back to the core experience You then get a SnapChat push notication and the cycles continues. Retention Event: Push Notication
Retention is important otherwise youll get
A growth engine without a product engine is hard to sustain.
Other user states to consider are revenue and referral.
Free channels Referral getting one of your users to refer another user After youve starting using SnapChat you then feel comfortable inviting a friend. Referral Event: Messaging a friend
Free channels Revenue monetizing people SnapChat currently doesnt make money. Theyre optimizing for user growth, which a monetization step would slow down. If SnapChat started sending disappearing ads, advertisers would pay. Revenue Event: N/A
Say your product was a simple quiz website.
But only 1 out of 118 completed it.
One approach could be to acquire more users.
Youd probably have to bring in another 118 to get only 1 more user to activate.
Thats really hard.
More likely your bottleneck is a landing page. image credit: iacquire Clear headline Short copy, graphic or visual Call to action
And can lead to a much better result if you focused there..
In this case your bottleneck was activation.
Insight To build your engine, focus on your point of highest leverage.
Choosing a metric youd like to move may be the hardest thing. Its changes and is tough to prescribe.
Metrics are merely a reection of the product strategy that you already have in place and are limited because theyre based on what youve already built, which is based on your current audience and how your current product behaves. Andrew Chen
It helps you prioritize, which may be the hardest thing to do. Text
Start with an in depth study of your users.
Talk to them.
Where do your most engaged users come from or hang out?
I say, take as many angles as you can to gure this out.
In person interviews
Craiglist to nd people in your target market
If you were to recommend [product name] to a friend, how would you convince them to use it? Great question after someones rst tried your product