growth hacking for enterprise - what it is and how you can use it

Growth Hacking A New Approach to Marketing: What it is and How

You Can Use It

Serge Milbank

@stream20 @eumeus

Who are Stream:20?

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on the client side

London Munich San Francisco

What we’re up to in Silicon Valley

Silicon Valley

Goal 1: Service client base & Grow operations

Goal 2: Tap into technology & innovation in the silicon valley tech

scene

What is Growth Hacking?

• Its how all the major start-ups grew, and how all the

new ones are trying to grow

• Used as an approach to growth instead of

marketing in Silicon Valley

• At its heart: it integrates product development in

the marketing process

Google’s Hack of Yahoo

Between 2000 – 2004 google experienced a ten fold increase in daily search queries

Yahoo search

results

somewhere

between 2000

and 2004

So what is it?

Move Fast Focus On Big

Wins

Target The Right

Customers

Automation is key

Your Product Is Your

Marketing

Tends not to be

Paid Based on pushing a proposition to a customer

Tends to be

Far more data driven Far more tech driven

>not suggesting enterprises drop traditional marketing, but these techniques and

approaches will improve your marketing

Output: Non-traditional marketing approaches that drive exponential growth.

PR

INC

IPL

ES

So what is it really?

“…..you have to search through your data from

your more active and passionate users and discover

the deep core patterns that encouraged those users

to become active” - Josh Elman

Twitter’s on-boarding

Insight:

• If you manually select

and followed at least

5-10 Twitter accounts

in your first day on

Twitter, you are much

more likely to

become a long term

user 2007: 2 million users 2014: 200 million active users

Product Change:

How do you make that happen?

Marketing Product/Tech

Marketing Product/Tech

TR

AD

ITIO

NA

L

MA

RK

ET

ING

GR

OW

TH

TE

AM

S

• Separate teams

• Marketing brief goes into the work

stack – you may see it next year

• Marketing thinks Product/Tech are

slow and are prone to saying “no”

• Product/Tech thinks Marketing are

reckless

• Unified Teams, unified KPIs

• Marketing & Product/Tech form the brief

as a team

• Leverages the ability of the product itself

to market

• Reckless briefs become increasingly

viable

• Tech response becomes increasingly in

tune with business reality

Structure: How an enterprise can growth hack

Marketing

Product Data

Growth team • 1-2 technical marketers • One Data Scientist • 2 developers not reporting into product development • Work on marketability of the product

Product Team • Current team • Work on

product improvement

Marketing Team

• Traditional Marketing outputs

Data Team

• Data Requests

• Some insight

Some concepts with examples

How have things changed: Marketing is LOPA

Publisher Destination

Publisher Destination

TR

AD

ITIO

NA

L

MA

RK

ET

ING

G

RO

WT

H H

AC

KIN

G

• You buy an ad

• If your ad is good enough,

people visit

• You integrate with publisher

sites by providing content

• The content must add value on

the site

• If compelling enough people

will visit

• You need not pay all the time

LOPA: Leveraging other peoples audiences

Air bnb – Growth hacking Craigs list using LOPA

Manual API

Integration

Paid Unpaid

It took just 4 years for airbnb to serve its 1st 4 million guests

Monetise Drive Usage Find users

……and oh yes, they think they are pirates

• AR

• AAR

• AARRR

• AR ARR

cquisition ctivation etention eferral evenue

cquisition evenue

cquisition Activation evenue

THE GROWTH

HACKER

THE OLD

SCHOOL

THE FREMIUM

cquisition eferral ctivation etention evenue THE GROWTH

ENGINEER

Drop-Box’s Incentivised sharing & onboarding

Dropbox grew from 100,000 users to 4,000,000 in under two years

ctivate

etain

efer

Some new metrics you need to be

using

New Metrics: K Coefficient

• VK – Visitors plus referred visitors from network

VK 1000 visitors £5 CPA Effective CPA

V0 1000+0 = 1000 £5000 £5

V0.1 1000+100 = 1100 £5000 £4.55

V0.2 1000+200 = 1200 £5000 £4.17

V1 1000+1000 = 2000 £5000 £2.5

V2 1000+2000 = 3000 £5000 £1.6

V3 1000+3000 = 4000 £5000 £1.25

• Reality is this most outcomes will not go viral

• Your goal is to get it above 0, to get effective CPA down

Viral

gro

wth

Linkedin – leveraging your connections

• Social

contacts

• Email contacts

Manual API

Integration

Paid Unpaid

Member growth • 6k in 2003 • 100k in 2004 • 1.7m in 2005 • 4.2 in in 2006 • 90m 2010 • 300m 2014

Aggregating it all together

Traffic source 1

Traffic source 2

Audience 1 Audience 2 Content group

Acquisition (Engaged traffic)

60,000 63,000 14,400 18,000 72,000

Activation (Micro conversion)

9,000 (15%)

8,505 (14%)

3,240 (23% )

2,700 (15%)

10,800 (15%)

Referral (K Coefficient)

450 (5%)

425 (5%)

324 (10%)

135 (5%)

540 (5%)

Retention

2,700 (30%)

2,552 (30%)

972 (30%)

810 (30%)

3,240 (30%)

Revenue

180 (2%)

170 (2%)

81 (2.5%)

54 (2%)

216 (2%)

A totally new way at looking at your metrics:

What does this mean for enterprise – how do you use it?

1. Set up your KPIs for success: Know when you shift the dial

2. Set up internal growth team: Keep it small: 3-5 people: requires:

marketer, technical, data) – all on the same KPI

3. Do some basics: All the things you couldn’t do before. Get some

basics over the line

4. Brainstorm 10-20 growth hacks: work them through with your team

– what is achievable, what will have a big impact and wont get

watered down

5. Attempt no more than 4: expect 3 of them to fail, if 1 succeeds,

iterate to get it as big as possible

Thank you

@stream20 @eumeus

www.stream20.com