growth hacking - hipages group friday talk
Post on 13-Sep-2014
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DESCRIPTION
hipages Group VP of Product gave a Friday talk to hipages Group staff on Growth Hacking. The presentation covers: - What is Growth Hacking - Growth Hacking process - The Growth marketing funnel - Some Growth Hacking examples - Distribution firehoses hipages Group Friday talks are informal lunchtime presentations where members of our team share areas of expertise or passion with a cross functional group. Staff from all different departments attend to get an understanding of how other departments think.TRANSCRIPT
Friday Talk Growth Hacking
- Dino Talic
Outline
•What is Growth Hacking•Growth Hacking process•The Growth marketing funnel•Some examples•Distribution firehoses
Disclaimer
Growth hacking does not:
• Walk your dog• Babysit your kids• Run your business for you• Buy you an island in the Bahamas (most of the time)• It does not blend!
What is Growth Hacking
Concerned with acquisition of active users
What does it really mean?
Story for 99% of companies:1. They perceive a user need or gap in the market2. Assemble a team3. Work non-stop for 3 months and release a product
Result = nobody uses it
Most companies at this point begin to build additional features hoping something will stick
This further obfuscates what the real problem is
The Growth Hacker
The Growth Team
• A Growth Team has something most other teams in the company don’t:
• A Growth Team’s sole focus is moving a single metric
• Ability to break down and analyse a problem space
FOCUS
Growth Hacking Tactics
Most companies’ approach to Growth
They track 3 key metrics
Traffic Users Revenue
? ?
The Growth Hacking Approach
Acquisition
Activation
Retention
Revenue
Referral
The Growth Hacking Approach
Acquisition
Activation
Retention
Revenue
Referral
How users find you?
Do users have a great first experience?
Do users come back?
How do you make money?
Do users tell others?
The Growth Hacking Approach
Acquisition
Activation
Retention
Revenue
Referral
SEO, SEM, Widgets, Email Newsletter, Blogs, Affiliates, PR, etc.
Product features
Emails, alerts/notifications, blogs
Subscriptions, lead gen, etc.
Social integration, campaigns, emails, widgets, etc.
The Growth Hacking Approach
Source: Dave McClure – Startup Metrics for Pirates
The Growth Hacking Process
Rinse and
Repeat
The New Reality of Online Marketing
“The Law of Shitty Clickthroughs“
- Andrew Chen
Over time all marketing strategies result in low clickthrough rates.
The New Reality of Online Marketing
The first banner ad:•Hotwired CTR, 1994: 78%
Today:•Facebook CTR, 2012: 0.05%
The New Reality of Online Marketing
How can Growth Hacking help?
• Growth teams build distribution into the product
• Leverage mass distribution platforms
• Experiment to find creative marketing and distribution channels where the competitors haven’t yet arrive
Distribution Platforms
• For the first time ever, superplatforms like Facebook and Apple uniquely provide access to 10s of millions of customers
• The discipline of marketing is shifting from people-centric to API-centric activities
• Growth hackers embody the hybrid between marketer and coder needed to thrive in the age of platforms
- Andrew Chen
A Case Study - AirBnB
• AirBnB was building a two-sided marketplace for a user need that already has a lot of entrenched competitors:– Hilton, Sheraton, etc– Expedia, Agoda, etc– Classifieds– Relatives, friends of friends, etc
• AirBnb looked at an existing competitor and turned it into a distribution platform for its own service
A Case Study - AirBnB
A Case Study - AirBnB
• Point of leverage:– 7 friends – 1 photo uploaded
• User engagement graph non-linear after this inflexion point
• Facebook growth team spent a lot of time optimising their onboarding experience to ensure a maximum number of users reached the above goals
Distribution Firehoses
Distribution is unprecedented
Technological adoption is accelerating
% of US Households
Not so long ago
➔ In 1900, <10% of families owned a stove, or had access to electricity or phones
➔ In 1915, <10% owned a car➔ In 1930, <10% owned a fridge or washer➔ In 1945, <10% owned a dryer or air-
conditioning➔ In 1960, <10% owned a dishwasher or
colour TV➔ In 1975, <10% owned a microwave➔ In 1990, <10% owned a cell phone or
Internet
➔ Today.. more than 90% own all the above.
What does all of this mean?
Desktops, Laptops Mobile Phones, Tablets
Adoption is accelerating
… and faster
… and faster!!!
Parabolic growth comes from harnessing
distribution fire hoses
Apple Firehose
Google Firehose
Reddit Firehose
Other unconventional Firehoses
Virality Social Reviews. Friends. Inviters
Further Reading
• Mattan Griffelhttp://www.slideshare.net/mattangriffel/growth-hacking
• Andrew Chen bloghttp://andrewchen.co/
• Quorahttp://www.quora.com/Growth-Hacking/What-is-growth-hacking