finding startup traction
Post on 17-Oct-2014
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DESCRIPTION
This presentation covers how startups can gain traction and find sustainable growth by navigating through Sean Ellis's Startup Pyramid framework. With a focus on product/market fit, product instrumentation, and early-stage acquisition channels, the goal is to give entrepreneurs a framework to manage against with their early stage growth efforts.TRANSCRIPT
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Unlocking Growth Building a sustainable growth engine with the new rules of marketing.
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“Most startups don’t fail at building a product. They fail at acquiring customers.”
– Gabriel Weinberg
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Startup Growth Pyramid
Growth
Stacking the Odds
Product/Market Fit
Source: Sean Ellis
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Growth
Stacking the Odds
Product/Market Fit
Source: Sean Ellis
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Get to Product Market Fit First
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What is Product/Market Fit? A large group wants/needs your product – it’s a ‘must have’.
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“Focus obsessively on getting to product/market fit.”
– Mark Andreessen
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Do you have PMF? Ask “How would you feel if you could no longer use the product?”
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Source: Sean Ellis
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“Very Disappointed” 0 – 25%
26 – 39%
40 – 100%
Keep burn low, engage, iterate
Try repositioning, retargeting
Proceed up pyramid
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After PMF, transition to
growth
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Growth
Stacking the Odds
Product/Market Fit
Source: Sean Ellis
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Race to scale Instrument your product Activate users Increase exposure—the race to scale
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Instrument your product Source data (referral source in user record) Event & cohorts Conversion rates Engagement/retention Lifetime value
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Dave McClure’s Pirate Metrics Acquisition Activation Retention Revenue Referral
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Find your metric that matters “x people did x searches in past week” “y people visited my site x times last month” “z users send n messages via my app each day”
Source: Josh Elman
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Build a Value Delivery Engine
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Build a must-have product Understand must-have experience (MHX) Calibrate hook & promise messaging Optimize flows to deliver MHX
Must-Have experience
Hook/ Promise
Source: Sean Ellis
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Steps for value delivery engine
Understand MHX
Macro Optimization
Segment/Personalize
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Optimize Value Delivery Engine
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Successful optimization process Funnel
Analytics
Insights Test Variations
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Max % that reach MH experience Build desire, reduce friction
Must-Have experience
Hook/ Promise Goals
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Desire – Friction = Conversion Rate
Source: Sean Ellis
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PIE test prioritization Potential Importance Ease
Source: Wider Funnel
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A/B test combos Messaging Flows
Hooks based on intent/pain Promise based on MHX Clear description of solution
Flows that reduce friction Flows that frontload MHX
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Language market fit What is this thing you’ve built to your users?
Store your photos Share your photos
Find a date Help people find a date
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Developing promise statements Focus on a single benefit for each Limit to about 10 words Write wildly different statements
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Segment/personalize last Default to macro first, then segment At a minimum manage active vs. inactive Develop programs to manage full lifecycle
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Growth
Stacking the Odds
Product/Market Fit
Driving Growth is Last Step
Source: Sean Ellis
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Four Types of Growth
0
20000
40000
60000
80000
100000
120000
140000
160000
180000
1 2 3 4 5 6 7 8 9 10 11 12 13
Topline
Activated
Retained
Monetized
Source: James Currier
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“Growth is about taking your product and optimizing it to create compound interest.
There are very few (if any) silver bullets when it comes to growth.”
– Andy Johns
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Why Growth Hacking?
$0
$20
$40
$60
$80
$100
$120
$140
$160
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
US Online Ad Spend per User
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“Growth hacking: A cool-sounding euphemism for making the doer feel good about using the
same old sleazy marketing tricks.” – David Heinemeier Hansen
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“Growth hacking is a recognition that when you focus on understanding your users and how they discover and adopt your products, you can build features that help you acquire and retain more users, rather than
just spending marketing dollars.” – Josh Elman
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Don’t delegate growth to a ‘hacker’ Original vision on customer need Don’t abdicate fate to a marketer Growth as an organizational priority
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Growth = fx (Probability of Success, Impact, Resources Required)
Source: Brian Balfour
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Right marketing mix for you? What are you optimizing for? (Learning, volume, cost) What are your constraints? (Time, money, audience, legal)
Source: Brian Balfour
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New User Channels
Email Facebook Twitter
Pinterest Craigslist Google+
iOS Android
Blog widget
Google SEO
Tumblr Twitter WOM
Press
Appstore Featured
TV Apps
Mobile ads
Web ads
Online video
TV ads
Radio ads
SEM
Affiliates
Viral Paid
WOM Source: James Currier
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Categories of growth hacks Platform integrations Powered by Instrumented virality Data-driven hacks Igniting word of mouth
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0
20
40
60
80
100
120
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Viral Channel Effectiveness
WOM Email
MySpace
Craigslist
iOS
Android
James Currier
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Growth
Stacking the Odds
Product/Market Fit
Build Growth on a Solid Foundation
Source: Sean Ellis
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