how to identify your highest impact growth opportunities

How to identify your highest impact growth opportunities

@Kissmetrics

#Kisswebinar

@thuelmadsen

Thue MadsenMarketing Operation Manager,

Kissmetrics

Brian began his career at Teradata, analyzing consumer data for Proctor & Gamble. Then he built an analytics

tools company, which was acquired by PeopleSoft. Later, he was the CEO of Quantivo, one of the first large-scale

cloud-based analytics platforms. So he understands what it takes to build an analytics solution that people love.

Brian KellyCEO, Kissmetrics

@bkkelly

Author of Hacking Growth. Coined the term "growth hacking" after using it in early days to ignite breakout

growth for Dropbox, Eventbrite, LogMeIn and Lookout.

Sean EllisAuthor of Hacking Growth, CEO of GrowthHackers

@SeanEllis

https://twitter.com/bkkelly

https://twitter.com/SeanEllis

1 The New Funnel is the full customer journey

2 The North Star Metric

3 Identifying and experimenting around the biggest opportunities for sustainable growth

TABLE OF CONTENTS

#Kisswebinar

4 Analyze behaviors to identify & grow your best customers

5 Q&A

WATCH WEBINAR RECORDING NOW

http://grow.kissmetrics.com/webinar-212?utm_medium=slideshare_deck&utm_source=slideshare

The New Funnel is the full customer journey

The old funnel is top heavy and leaky

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Old funnel

Marketing

Sales

CS

The old way

● Top-heavy on resources, not ROI

● Customers entered the product late

● Next “lead” got more focus than “customers”

The New Funnel is way more interesting...and complex

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New funnel

Sales

CS

Growth Marketing

Sales

CS

The new way

● Lines across the funnel have blurred

● More care and feeding required - or expect churn

● Growth marketers have more responsibility and

accountability for company growth - and they need

help

A new approach is required to drive growth

The North Star Metric

Most Important Concept in Growth

● Focal point of fastest growing businesses

● Opposite of a vanity metric

● All important metrics key off of the NSM

North Star Metric

#Kisswebinar@SeanEllis

What is a North Star Metric?

● Single persistent metric for real growth

● Reflects growing footprint of aggregated value

● Measures sustainable growth based on value

North Star Metric


Facebook● Value: see friends’ updates

● NSM: Daily Active Users (DAU)

● → to value: 7 friends in 10 days

North Star Metric Examples

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Uber/Lyft● Value: $ for drivers, rides for riders

● NSM: Weekly rides

● → to value: First ride/passenger

@SeanEllis

Full Company Metric (not just a marketing metric)

● Marketers only influence subset of North Star Metric levers

● Right North Star Metric aligns full company to deliver value

● All teams should evaluate their impact on North Star Metric

North Star Metric


Benefits of using a North Star Metric

● Marketing ROI tied to value delivered

● Customer retention tied to value delivered

● Customer evangelism tied to value delivered

North Star Metric


Defining your North Star Metric

Step 1: How do customers get value from your product?

Step 2:How can you best quantify this value?

North Star Metric


Identifying the biggest growth opportunities

Growing your North Star Metric

● What are the key levers for growing your NSM?

● What prevents growth of your NSM?

Growth Opportunities


Test to Discover & Improve Tactics

● Find leverage opportunities and set goals

● Generate effective growth ideation

● Use proven growth testing process



Finding High Impact Objectives

● Most leverage in growth model

for moving North Star Metric

● Where are you losing people (data)

● Why are use losing people (surveys)



Effective Growth Ideation

● Problem solving for objective

● Group brainstorming sessions

● Any team member, anytime

● Ensure clear hypothesis

expected result/why?

● Score ideas on ICE

I - Impact

C - Confidence

E - Ease



Use Proven Testing Process

● Systematic learning in sprints

● Weekly growth meeting

○ Discuss progress against objectives

○ Review tests planned vs. launched

○ Discuss analysis of tests

○ Team “pitch” nominated ideas



More Testing = More Learning

● Set weekly testing targets

● Fix what prevents testing

○ Engage executives with testing results

○ Add resources to improve throughput


#Kisswebinar@SeanEllis@SeanEllis

Document Learnings

● Document tests, hypothesis and results

● Step-by-step guide for executing proven tactics

● Monitor for continued effectiveness



Analyze behaviors and grow your best customers

25

Understand what people are doing on

your website and products.

Define and monitor your most important growth

segments.

Engage them based on behavior.

> >

Get, keep and grow more customers

Analyze: Understand behavior to identify bottlenecks in the journey “north”

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Use behavioral analytics to understand:

● Who are your best customers● What are the bottlenecks and drivers to acquisition and retention● How are your initiatives / tests performing

Segment: Define and track your key growth segments

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Define and track key growth segments:

● Build and monitor key segments along the journey “north”● See how populations / segments change over time● Align initiatives with key groups to influence forward progress

Engage: Precise interactions to help people along their journey

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Engage customers along their journey “north”:

● Behavior-based emails and messages to help them throughout● Target people when they become part of a key segment● Continuous testing and optimization

29

+Analyze Populations Campaigns+

Customer Engagement Automationby Kissmetrics

Understand what people are doing on

your website and products.

Define and monitor your most important growth

segments.

Engage them based on behavior.

Key Takeaways

● Diagram customer journey using new funnel

● Find and grow your North Star Metric

● Focus on growing your best customers

Identifying High Impact Growth Opportunities


LEARN MORE NOW

Get, keep and grow more customers with Kissmetrics Customer Engagement Automation

https://www.kissmetrics.com/?utm_medium=slideshare_deck&utm_source=slideshare

Brian KellyCEO, Kissmetrics

@bkkelly

Questions?

Sean EllisAuthor of Hacking Growth, CEO of

GrowthHackers

@SeanEllis