Slides to the growth hackathon (code-free) the Kellogg alumni club just held in Palo Alto. We covered the Lean Canvas, getting to product-market fit, Aha! moment, growth marketing, and the analytics you should be focused on.
6. Product-Market Fit
“Product/market fit means being in a good market with a
product that can satisfy that market.” – Marc Andreessen
What is a good Market?
• a large number of potential users
• high growth in # of potential users
• ease of user acquisition
• 40% or more will be unhappy or miss it if withdrawn
• Some segment of users in the overall market switch to
your product
• Users who’ve “rejected” the products in the market
willing to try your product
• Underlying metrics (DAU/MAU, +1 week retention,
etc.) tell the story
What is a Product that satisfies it?
9. MVPs and Metrics
A meaningful metric captures a moment of value for the customer and the business.
Defining success metrics:
“accounts created” vs.“number of accounts where users share a post”
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
21.
22.
23. Marketing: Personas & Customer Journey Maps,
WOM, User Groups
• Create personas & then a customer journey map (storyboards) for every
key persona showing their key experiences
• Word of mouth (WOM), PR & invite flows are excellent forms of
acquisition. WOM is always the easiest & cheapest growth.
• AirBnB turns their users into their own distribution networks: through the
click of a button you can post your listing to Facebook, Twitter, LinkedIn...
24. Content Marketing & Social Media
Online petitions: CREDO Mobile's 275,000 Likes on FB
25. Marketing: Content Marketing & SEO
Identify your most valuable customers & create content they crave:
Credo Mobile example, Salesforce, HubSpot, KISS Metrics..
• Inbound links from high authority sites, page rank
• Site architecture: title & description tags, anchor text, descriptive
URLs, "Mobilegeddon"
• Link-rich, transactional keyword-focused content pages: setup
persona-based keyword groups targeting your most valuable users
• Keyword research is key: (1) What do people search for that's
related to your site; (2) How many people search for it; (3) How
many other people are ranking for it; (4) How valuable is it for you?
26. Analytics: Retention Rate
• Customer retention is important because
long term customers tend to spend more,
cost less, and provide referrals
• Retention can come at different points in a
customer lifecycle i.e. monthly subscription
vs annual subscription
• Retention Rate is calculated as:
(# of customers EOP - # of customers acquired )
Total number of customers BOP
• EOP – End of Period
• BOP – Beginning of Period
27. Analytics: Lifetime Value
• Expected profit realized from sales to a
particular customer in the future based on past
customer history
• Can be calculated at the cohort level at time of
acquisition and at the individual customer level
• Examples of Uses
– Target customers based on high and low LTV values
– Evaluate proposed marketing programs and its effects
on retention, spend, and overall LTV
29. Analytics: Net Promoter Score
• An index that measures the willingness of
customers to recommend a company to others
• Used to gauge overall satisfaction and brand
loyalty
• “On a scale of 0 – 10 , how likely are you to
recommend this company’s product or service
to a friend or colleague.”
• Scoring:
– Detractors score 0 – 6
– Passives score 7 – 8
– Promoters score 9 – 10
– NPS = % Promoters - % Detractors
30. Analytics: Net Promoter Score
• Example NPS scores:
– Laptops:
• Apple +72
• HP +46
– Airlines:
• Southwest +62
• US Airways -8
– Cable:
• DirecTV +34
• Comcast -3
32. • Start in your smallest segment possible, monopolize
it & then expand ("competition is for losers":Thiel)
• How is your product unique & better?
• Do things that don't scale: build out an awesome
experience before coding it (YC)
• Live user testing/customer support is key: quantitative
& qualitative; focus on finding the big problem
Growth Strategy
33. • "Product/market fit means being in a good market with a product that can satisfy that market":
Marc Andreessen
• "Make something people want": Paul Graham (Y Combinator)
• "Make insanely great products": Steve Jobs
• "A great brand is a promise of benefit that's persuasive and unique": David Ogilvy
How do you know if you have it?
• Would at least 40% of your customers say they'd be "very disappointed" without your product
(Survey.io)
• Clearing Net Promoter Score (NPS), retention and lifetime net value hurdles
• Word of mouth is one of your biggest acquisition channels; virality (K value > 1)
Product/Market Fit
34. • How are you measuring your product/market fit?
• Are you clearly communicating your unique, compelling value
proposition?
• Who are your most valuable customers?
• What early behavior are your most valuable customers doing
that's most predictive of success?
• How quickly are you getting your users to their aha! moment?
• How can you build virality inherently into your product?
Product & Marketing Questions