Slides that go with the Growth Hacking Roadmap infographic, which summarizes how startups can maximize the growth of their most valuable customers. It also summarizes the actionable analytics growth hackers should be using including cohort analysis, user testing and key performance indicators. Panel presentation by Mark Andersen, Prasanna Vinjamuri and Lauren Anderson.
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Growth hacking panel hosted by Kellogg MBA
1. Growth Hacking Roadmap
Maximize the Growth of Your Most Valuable Customers
Kellogg School of Management
Mark Andersen
Prasanna Vinjamuri
Lauren Anderson
June 26, 2014
2.
3. Create Your
Business
Model
Product /
Market Fit
Most Valuable
Customers
Early Behavior
of Most
Valuable
Customers
Aha! Moment
Virality
Optimize
Content Funnel
Content
Marketing &
Social Media
User & Social
Networks /
App Stores
Online / Mobile
Advertising
Growth Hacking Roadmap
4. Create your business model
Business Model Canvas
Step 1
What
customer
segments
does your
organization
serve?
Establish and
maintain
customer
relationships
What are the
key value
propositions
to customers
in each
segment?
12
Communication,
Delivery, Sales
Channels
How you do it
Assets to create
and deliver
value
Activities
outside your
organization
Convert customer value to revenueYour cost structure
Your Business Model
5
4
36
78
9
6. Product / Market Fit
"How to lose $170 million in VC funding"
• AllAdvantage after 18 months: 13 million members,
Top 20 site, $170 million from VCs, 3 weeks from IPO
• "Biggest whale on the dotcom beach"
• Why did it fail? Too much focus on acquisition, never
achieved p/m fit
Step 2
7. Product / Market Fit
Step 2
• Circle of Friends launched on Facebook--returned $ to
the VCs
• Completed sale within 3 years to Sugar Inc
8. Most Valuable Customers
Using Lifetime Net Value Across Acquisition Channels
Step 3
0
25
50
75
100
Email Blog Retarg SEO Blog FB eBooks SEM Affiliate
10. Early Behavior of
Most Valuable Customers
Location Labs
Step 4
Early Behavior
Persons who check for location at least once
within the first week after signup have LTV > 4x
those who don’t.
!
Action
Reminder email to check location for those who
hadn’t done so yet.
!
Results
Significant increase in LTV.
11. Aha! Moment
WhatsApp's 10 step Onboarding process + 16 minutes to my Aha! Moment
Step 5
App Store download
Permission to get contacts
Permission to send push notifications
Enter phone number
Connecting my number
Receive the verification code and enter it
Validate the code
Prompted to fill out my profile.
Approve the Facebook permission.
Automatically shows favorites
13. Optimize Conversion Funnel
Your fastest way to increase Lifetime Net Value
• Start by improving existing opportunities, not new traffic
• Learn about people who don't visit key conversion pages
• Find the points where people abandon your site: ask them via exit
survey: "Is there something preventing you from checking out?"
• Test & measure pages, flows & cohorts
• Testing speed is critical. A/B only tells us "what." We have to do
user testing to figure out "why."
Step 7
14. Optimize Conversion Funnel
Tools to increase conversion rates, retention & LTV
• Analytics: Google Analytics, KISSMetrics, Mixpanel
• A/B testing tools: Optimizely, Visual Website Optimizer
• Testing a lot of landing pages: Unbounce
• Identify the "why" in friction points: Qualaroo,
UserTesting.com
Step 7
15. Content Marketing &
Social Media
Online petitions: CREDO Mobile's 275,000 Likes on FB
Step 8
!
• Clif Bar & Mint: 170,000 Likes
16. Content Marketing &
Social Media
Blogs: Salesforce, Whole Foods. Webinars: KISSMetrics, Qualaroo
Step 8
17. Content Marketing &
Social Media
Video content that drives results
Step 8
!
• Wren's "First Kiss" (clothing label in LA): 80 million views, sales
in their online store increased13,600% vs week before First Kiss
was released: youtube.com/watch?v=IpbDHxCV29A
• Red Bull's jump from space: 35 million views, youtube.com/
watch?v=FHtvDA0W34I
• GoPro's "Pelican learns to fly": 3 million views: youtube.com/
watch?v=_YEyzvtMx3s
18. User & Social Networks /
App Stores
API integrations enable invitations, notifications & sharing of activity
• B2B open APIs: LinkedIn, AppExchange, Yammer
Step 9
19. Online / Mobile Advertising
Find the right channels for your Most Valuable Customers
Step 10
Total
Customer
Value
source: marketo.com
20. Actionable Analytics & Research
New Customer Cohort
April May June July
Month ofAcquisition [2013]
0K
2K
4K
6K
8K
CountofNewCustomers
0
1
2
3
4
5
AverageNumberofOrders
$0.00
$20.00
$40.00
$60.00
$80.00
$100.00
AverageOrderSize
3,978
6,962
8,951
4,973
5
5
4
1
$91.50
$102.17
$87.50
$105.00
New Customer Cohort
The trendsof Countof New Customers,Average Numberof Ordersand Average OrderSize forAcquisition Month.
21. Actionable Analytics & Research
KPIs
4/7/2014 4/14/2014
First Time Visitors
Total Visitors
Conversion Rate
% New Customers
Retention Rate
Num Orders
Average Order Size
Total Sales $20,000
$125
160
3.35%
18.06%
3.92%
3,955
1,986
$26,040
$210
124
2.89%
15.32%
3.01%
4,123
1,822
Apr 2 Apr 4 Apr 6 Apr 8 Apr 10 Apr 12 Apr 14
14 Day Trend
22. Summary
If you takeaway nothing else...
• Product/market fit is paramount
• Don't accelerate your acquisition spend until you've achieved p/m fit,
optimized your funnel & positive Lifetime NetValue
• Setup your analytics asap
• Cohorting & most valuable customers critical
• Common mistake is focusing too much on acquisition & virality and not
enough on retention