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Bryan Ferguson | November 2013
Traditional marketing is too slow for rapid growth
Traditional marketers try to buy
the attention of prospects.
This is too slow, risky, and
expensive for high growth
focused companies.

Traditional
Marketing

$

Traditional Marketing
•
•
•
•

Direct Mail
Email Blasts
Print
TV & Radio

•

PPC

•

PR

•

Events

•

Cold Calling

Slow

Expensive

Dropbox Lesson
In 2009 Dropbox launched with paid search
Cost per acquisition: $233 - $388
Price of product: $99. FAIL.

Dropbox Lesson
Adwords didn’t create a lot of new users
Very few searches for relevant keywords
Very slow user acquisition channel
Start-ups and high growth
companies are dismissing the high
cost and lower life time value of
traditional marketing for growth
hacking.
Growth Hacking

 It’s cheap
 It’s efficient
 It’s iterative
 It’s practical
 It’s scalable
Almost every company that is rapidly acquiring new
users is lead by a growth team and a growth strategy.
A growth hacker’s core mission is rapid growth
Behavior Economics
Decoding user motivations to
inspire and create viral growth.

Creative Growth Hacks
Out-of-the box solutions
to rapidly acquire users
with high retention

Funnel Optimization
Obsessing over
testing, measuring and
moving funnel metrics

Product Fit & UI
Constantly refining
product experience for
conversion and growth

Data Analytics
Rigorous, empirical,
scientific approach to driving
conversions and growth

Market Dynamics

RAPID
GROWTH

Pairing market trends,
supply, demand and pricing
to product fit and strategy.
While Growth Hacking is primarily focused on online
companies and start-ups, examples of innovative growth
hacking can be seen in more traditional industries.

McDonalds – 1950s
McDonalds was quick to understand
the dynamics of America’s new
interstate network as a new channel
for reaching customers. They rapidly
acquired new customers by setting up
golden arches along highway exits.

Today, online distribution channels and social networks are
being redrawn, creating massive change and opportunities
for almost every industry to reach and connect with people
in new and innovate ways.
Acquisition

Getting People to Your Site

Activation

Getting Users to the AHA Moment

Retention

Delivering Product Value Early and Often

People come to your site from various channels

Users sign-up or create accounts

Repeat use of product & features

Referral

Getting Users and Advocates to Share

Revenue

Turning Users and Activity into Revenue

Growth via sharing & WOM

Monetize user behavior
Have one clearly stated measurable goal for each
point in the funnel

Acquisition

People come to your site from various channels

Examples
15% Increase in Conversion Rate

Activation

Users sign-up or create accounts

5% Increase in New Accounts

Retention

Repeat use of product & features

Doubling return visits to site

Referral

Growth via sharing & WOM

2 Referrals per User

Revenue

Monetize user behavior

20% Increase in ASP
Identify or creatively engineer your unique hacks or
data points that will drive conversion at each stage

Acquisition

AirBNB: auto-posted to Craigslist
Mint: Sign-up page for every finance topic
Zynga: built on top of Facebook

People come to your site from various channels

Activation

Users sign-up or create accounts

Retention

Repeat use of product & features

Referral

Growth via sharing & WOM

Revenue

DropBox: easy sign-up with email notice to install
OKCupid: Signup process with animated guide
PayPal: $10 incentive to sign-up
Twitter: 30 Follower is the key to retention
Facebook: 7 Friends is the key to retention
Path: Friends send email when you are inactive
Dropbox: 500MB increase storage for referral
Hotmail: “P.S. I Love You. Get your free email at
Hotmail.com” at the bottom of every email.

Monetize user behavior

Living Social: Free if 3 friends buy
Udemy: Your student – you get 100% of the sale
Identify and track your key metrics – run experiments to improve
Unique Visitors

Acquisition
Activation

Time on Site

# of Pages

Visitors by Source & Cost

# of Clicks

Best Performing Source

Unique Visitors – Sign-up

New Account Creation

Sign-up Conversion

Opt-in Conversion

Email Click-Through Conversion

Retention

Returns to Share

Logs in 3 Times of More

Returns to Use X Feature

Returns to Complete Profile

Length of Use

Shares via Email

Revenue

Shares via Social

Referral Conversion

Posts to FB, LinkedIn, Twitter

Viral K Factor > 1

Paid Conversion

Referral

Invites

Activation to Sales Conversion

Leads by Source

Sales

Leads to Sales Conversion

Revenue
Use the right set of tools to build your experiments and
validate your assumptions

Website
Analytics

Funnel
Measurement

User
Survey

Landing Pages
& A/B Testing

Google Analytics
MOZ

KissMetrics
MixPanel
Kontagent
Trak.io
Flurry

Survey Monkey
Qualaroo

Opimizely
VMO (Visual Website
Optimizer)
Unbounce
CrazyEgg
PageSpeed Insights
Write down your hypothesis
Assemble your resources and team
Have a control group & setup and A/B testing
Run your experiment
Objectively review and measure your results
Implement positive findings
Optimize your experiment and repeat
Seeding a platform from zero is extremely challenging and the
demise of most user-driven businesses. Here’s seven popular
growth hacks for gaining critical mass




Piggyback on
Underlying
Network

Provide Stand
Alone Value

Platform
Seeding
Strategies





Seed in Niche
Geo/Industry/
Existing
Network

Pre-Populate
Platform Data
& Activity



Bait User
Sign-up



Recruit High
Profile Early
Adopters



Fake
Activity
Take a look at the innovations others in your industry have
used to seed supply and demand on their platform

Piggyback on
Underlying
Network

Pre-Populate
Platform Data
& Activity

Fake Activity
on Platform

Example:
PayPal’s
AutoLink with
eBay

Example:

YouTube
Pirated Early
Content

Example:
Quora Interns
Answered
Questions

Example:
airbnb autoposted to
Craigslist

Example:
Initially used
public domain
content

Provide Stand
Alone Value

Example:
First distributed

Seed in Niche
Geo/Industry/
Existing
Network

Example:

booking system
for restaurants

Facebook
started with
student network
in Harvard
Start with a growth hacker with broad skills and mature into a
growth team with specialized roles and defined processes
Phase 1

Phase 2

Growth
Hacker

Growth
Team
Spans multiple functions
Guerilla tactics
Creative genius
Obsessed with goals

I

a
Content
Writer

Process oriented
Specialized roles
Formal planning

Graphic
Designer

Developer

Project
Manager
(leader)

Data
Analytics
G

ALLOW DATA TO
DRIVE EVERYTHING

REMOVE EGO
FROM OUTCOME

BE ANALYTICAL &
OBSESSIVE - TEST
EVERYTHING

BECOME
AGNOSTIC ON
METHOD

ALWAYS DELIVER
PRODUCT VALUE

THINK OUTSIDE
THE BOX
1

6

Build your growth funnel

Run your experiments

2

7

Identify your points of
leverage

Test, optimize, measure,
repeat

3

8

Clearly state your
measurable goals

Find your growth hacks

4

9

Define and track your key
funnel metrics

Build your growth team

5

10

Acquire the right tools

Embrace the growth
hacker mindset
"Marketing has
always been about
the same thing —
who your
customers are and
where they are.“
Noah Kagan, Founder, APPSUMO
"A growth hacker works
within the parameters of
a scalable and repeatable
method for growth,
driven by product and
inspired by data. A
growth hacker lives at
the intersection of data,
product, and marketing.”
Aaron Ginn, HEAD OF GROWTH,
STUMBLEUPON
“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, PARTNER AT GREYLOCK PARTNERS
"Growth Hacking is the
process and mindset of
searching for ways that
your product to grow. It’s
kind of like a mix between
engineering and marketing.
The key is to find untapped
channels of customers
that are motivated to use
your product.”
Dan Martell, FOUNDER, CLARITY
"Virality isn’t luck. It’s
not magic. And it’s not
random. There’s a
science behind why
people talk and share. A
recipe. A formula, even."
Jonah Berger, AUTHOR OF “CONTAGIOUS”
About Bryan
As a veteran of high growth start-ups, Bryan
has become an active writer on Sales 2.0,
Funnel Optimization and Growth Hacking. His
eBook - 18 Keys to Revving Up Your Sales 2.0
Engine - is available on Amazon.

Thank you!

858-405-0249
BryanFerg@gmail.com
@Bryan_Ferguson
www.linkedin.com/in/bryanrferguson/

Bryan’s Book
18 Keys to Revving up
Your Sales 2.0 Engine

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Growth Hacking - 10 Key Checklist

  • 1. q  G Bryan Ferguson | November 2013
  • 2. Traditional marketing is too slow for rapid growth Traditional marketers try to buy the attention of prospects. This is too slow, risky, and expensive for high growth focused companies. Traditional Marketing $ Traditional Marketing • • • • Direct Mail Email Blasts Print TV & Radio • PPC • PR • Events • Cold Calling Slow Expensive Dropbox Lesson In 2009 Dropbox launched with paid search Cost per acquisition: $233 - $388 Price of product: $99. FAIL. Dropbox Lesson Adwords didn’t create a lot of new users Very few searches for relevant keywords Very slow user acquisition channel
  • 3. Start-ups and high growth companies are dismissing the high cost and lower life time value of traditional marketing for growth hacking. Growth Hacking  It’s cheap  It’s efficient  It’s iterative  It’s practical  It’s scalable
  • 4. Almost every company that is rapidly acquiring new users is lead by a growth team and a growth strategy.
  • 5. A growth hacker’s core mission is rapid growth Behavior Economics Decoding user motivations to inspire and create viral growth. Creative Growth Hacks Out-of-the box solutions to rapidly acquire users with high retention Funnel Optimization Obsessing over testing, measuring and moving funnel metrics Product Fit & UI Constantly refining product experience for conversion and growth Data Analytics Rigorous, empirical, scientific approach to driving conversions and growth Market Dynamics RAPID GROWTH Pairing market trends, supply, demand and pricing to product fit and strategy.
  • 6. While Growth Hacking is primarily focused on online companies and start-ups, examples of innovative growth hacking can be seen in more traditional industries. McDonalds – 1950s McDonalds was quick to understand the dynamics of America’s new interstate network as a new channel for reaching customers. They rapidly acquired new customers by setting up golden arches along highway exits. Today, online distribution channels and social networks are being redrawn, creating massive change and opportunities for almost every industry to reach and connect with people in new and innovate ways.
  • 7. Acquisition Getting People to Your Site Activation Getting Users to the AHA Moment Retention Delivering Product Value Early and Often People come to your site from various channels Users sign-up or create accounts Repeat use of product & features Referral Getting Users and Advocates to Share Revenue Turning Users and Activity into Revenue Growth via sharing & WOM Monetize user behavior
  • 8. Have one clearly stated measurable goal for each point in the funnel Acquisition People come to your site from various channels Examples 15% Increase in Conversion Rate Activation Users sign-up or create accounts 5% Increase in New Accounts Retention Repeat use of product & features Doubling return visits to site Referral Growth via sharing & WOM 2 Referrals per User Revenue Monetize user behavior 20% Increase in ASP
  • 9. Identify or creatively engineer your unique hacks or data points that will drive conversion at each stage Acquisition AirBNB: auto-posted to Craigslist Mint: Sign-up page for every finance topic Zynga: built on top of Facebook People come to your site from various channels Activation Users sign-up or create accounts Retention Repeat use of product & features Referral Growth via sharing & WOM Revenue DropBox: easy sign-up with email notice to install OKCupid: Signup process with animated guide PayPal: $10 incentive to sign-up Twitter: 30 Follower is the key to retention Facebook: 7 Friends is the key to retention Path: Friends send email when you are inactive Dropbox: 500MB increase storage for referral Hotmail: “P.S. I Love You. Get your free email at Hotmail.com” at the bottom of every email. Monetize user behavior Living Social: Free if 3 friends buy Udemy: Your student – you get 100% of the sale
  • 10. Identify and track your key metrics – run experiments to improve Unique Visitors Acquisition Activation Time on Site # of Pages Visitors by Source & Cost # of Clicks Best Performing Source Unique Visitors – Sign-up New Account Creation Sign-up Conversion Opt-in Conversion Email Click-Through Conversion Retention Returns to Share Logs in 3 Times of More Returns to Use X Feature Returns to Complete Profile Length of Use Shares via Email Revenue Shares via Social Referral Conversion Posts to FB, LinkedIn, Twitter Viral K Factor > 1 Paid Conversion Referral Invites Activation to Sales Conversion Leads by Source Sales Leads to Sales Conversion Revenue
  • 11. Use the right set of tools to build your experiments and validate your assumptions Website Analytics Funnel Measurement User Survey Landing Pages & A/B Testing Google Analytics MOZ KissMetrics MixPanel Kontagent Trak.io Flurry Survey Monkey Qualaroo Opimizely VMO (Visual Website Optimizer) Unbounce CrazyEgg PageSpeed Insights
  • 12. Write down your hypothesis Assemble your resources and team Have a control group & setup and A/B testing Run your experiment Objectively review and measure your results Implement positive findings Optimize your experiment and repeat
  • 13. Seeding a platform from zero is extremely challenging and the demise of most user-driven businesses. Here’s seven popular growth hacks for gaining critical mass   Piggyback on Underlying Network Provide Stand Alone Value Platform Seeding Strategies   Seed in Niche Geo/Industry/ Existing Network Pre-Populate Platform Data & Activity  Bait User Sign-up  Recruit High Profile Early Adopters  Fake Activity
  • 14. Take a look at the innovations others in your industry have used to seed supply and demand on their platform Piggyback on Underlying Network Pre-Populate Platform Data & Activity Fake Activity on Platform Example: PayPal’s AutoLink with eBay Example: YouTube Pirated Early Content Example: Quora Interns Answered Questions Example: airbnb autoposted to Craigslist Example: Initially used public domain content Provide Stand Alone Value Example: First distributed Seed in Niche Geo/Industry/ Existing Network Example: booking system for restaurants Facebook started with student network in Harvard
  • 15. Start with a growth hacker with broad skills and mature into a growth team with specialized roles and defined processes Phase 1 Phase 2 Growth Hacker Growth Team Spans multiple functions Guerilla tactics Creative genius Obsessed with goals I a Content Writer Process oriented Specialized roles Formal planning Graphic Designer Developer Project Manager (leader) Data Analytics
  • 16. G ALLOW DATA TO DRIVE EVERYTHING REMOVE EGO FROM OUTCOME BE ANALYTICAL & OBSESSIVE - TEST EVERYTHING BECOME AGNOSTIC ON METHOD ALWAYS DELIVER PRODUCT VALUE THINK OUTSIDE THE BOX
  • 17. 1 6 Build your growth funnel Run your experiments 2 7 Identify your points of leverage Test, optimize, measure, repeat 3 8 Clearly state your measurable goals Find your growth hacks 4 9 Define and track your key funnel metrics Build your growth team 5 10 Acquire the right tools Embrace the growth hacker mindset
  • 18. "Marketing has always been about the same thing — who your customers are and where they are.“ Noah Kagan, Founder, APPSUMO
  • 19. "A growth hacker works within the parameters of a scalable and repeatable method for growth, driven by product and inspired by data. A growth hacker lives at the intersection of data, product, and marketing.” Aaron Ginn, HEAD OF GROWTH, STUMBLEUPON
  • 20. “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, PARTNER AT GREYLOCK PARTNERS
  • 21. "Growth Hacking is the process and mindset of searching for ways that your product to grow. It’s kind of like a mix between engineering and marketing. The key is to find untapped channels of customers that are motivated to use your product.” Dan Martell, FOUNDER, CLARITY
  • 22. "Virality isn’t luck. It’s not magic. And it’s not random. There’s a science behind why people talk and share. A recipe. A formula, even." Jonah Berger, AUTHOR OF “CONTAGIOUS”
  • 23. About Bryan As a veteran of high growth start-ups, Bryan has become an active writer on Sales 2.0, Funnel Optimization and Growth Hacking. His eBook - 18 Keys to Revving Up Your Sales 2.0 Engine - is available on Amazon. Thank you! 858-405-0249 BryanFerg@gmail.com @Bryan_Ferguson www.linkedin.com/in/bryanrferguson/ Bryan’s Book 18 Keys to Revving up Your Sales 2.0 Engine

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