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HACKING
EGROWTH
NGINE
By: Mohammed Hanafy
HACKING
ENGINE
B y: M ohammed Hanaf y
AGENDA
CH1 WHAT’S GROWTH HACKING
mohammed.hanafy@aiesec.com
m.hanafy@Gereeb.com
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SPECIAL THANK YOU
RESOURCES
The Definition of Growth Hacking Growth Hacking as Business
Growth And all of this is specifically metric driven. But even more
specifically, driven by the scientific method, the build-
Marketing measure-learn method, the lean startup method, whatever
Metrics you want to call it…
RESOURCES
So if that’s growth marketing, then why do you constantly hear the
Growth Hacking, phrase “growth hacking?” Well, because more people want to be
however… growth hackers than growth marketers.
Whether that’s 100 more email sign-ups or 200 more website visits,
growth hacking is clearly about one SPECIFIC strategy that makes
one large and “unexpected” benefit to one core metric in a short
period of time, and usually for a low cost per acquisition.
This means that when you read about a growth hack, it will be
(slightly) less effective than when you invent one yourself. And a
year from now, it may not even work.
RESOURCES
In order for you to truly be “growth hacking” you need to:
In Order to be a Be a growth marketer - which means, you need to have turned ALL
of your business efforts towards growing an audience through a
Growth Hacker specific channel.
You must only care about your core 1 metric - either follows, views,
or most commonly email subscribers.
You must be running a well thought out growth test.
So, growth marketing is the broader concept that you need to grow
an audience and test various channels, whereas growth hacking is
literally executing a specific tactic, on a specific channel, that
grows that audience (and usually for a very cheap price).
Growth Marketing GROWTH MARKETING is slow and steady, in a sense, and
vs GROWTH HACKING is fast spurts of spontaneous growth.
Growth Hacking Tortoise vs. hare.
In the first phase of a startup you don’t need someone to “build and manage
a marketing team” or “manage outside vendors” or even “establish a
strategic marketing plan to achieve corporate objectives” or many of the
other things that marketers are tasked with doing. Early in a startup you
need one thing. Growth.
”
Sean Ellis “The first who introduced the term of growth hacking
GROWTH HACKING
GROWTH HACKING
PR Behavioral economics
Growth Hacking
Examples: Dropbox
& AIRBnB
Portfolio
Presentation
STARTUP ECOSYSTEM
Growth Hacking was born in startups, because of their needs to develop quickly in order to survive.
Now startups have embraced growth hacking.
Startups need to implement growth hacking techniques in order to not only grow, but differentiate
from the competition. They need to access market quickly and to grow their user base. Depending on
the kind of funding, and on their own objectives, startups can focus either on growing their user base,
or attempt to become profitable as early as possible.
But growth hacking does have a prerequisite: the product market fit. When a startup as attained
product market fit, then it can start using growth hacking to attract and retain users. “Product/market
fit means being in a good market with a product that can satisfy that market” according to Marc
Andreessen, who first introduced the term.
Startups and growth hacking share many values. For example, they
share risk taking. Both rely on innovative ways to address a specific issue or
need. They also share the “fail fast” mindset under which it is better to make
tests and be ready to fail fast so other tests can be implemented, and so on,
until something positive eventually come out of it.
CHAPTER 2
THE PROFILE OF
A GROWTH HACKER
THE
PROFILE OF
A GROWTH
HACKER
GROWTH
HACKERS ARE
ANALYTICAL
ANALYTICS KEEP
GROWTH
HACKERS HONEST
Here are some of the ways that growth hackers use analytics:
The world of marketing has been a place of feelings and emotions for quite
some time. What was the ROI of the billboard in Times Square? Who
knows, but it looks cool, right? Times have changed. Now it doesn’t matter
how charismatic you are in a meeting, or how powerful your ideas seem, or
how many sheep in upper management signed off on the campaign
The analytics will uncover your awesomeness or your daftness. Period. GROWTH
HACKERS ARE
ANALYTICAL
ANALYTICS SHIFT
THE FOCUS OF
GROWTH HACKERS
When you have systems that are tracking your product and activities, the
numbers have a way of shifting your focus in unforeseen ways. You might
have never dreamed of spending more resources on your referral loop. It
might have been a throw away feature that you put in the product just to
see what would happen. Then, after you dig into the data, you realize that
over 20% of all new signups are coming from this loop, and their lifetime
value is higher than your average user. You know that you can make the
loop much more efficient, so you change the focus of your team for the GROWTH
next two weeks to focus on this feature. Analytics can help stack
rank your to-do list in interesting ways. HACKERS ARE
ANALYTICAL
ANALYTICS MAKE
SUCCESS
REPEATABLE
When you don't take analytics seriously you can't efficiently
repeat past successes. If all you know is that the company
made more money in Q4 than in Q3, then you know nothing.
was Q4 better? Were there more users signing up for your
product, or did you just convert higher numbers of those that
did sign up. Was there a particular feature that began to be
used because of a recent redesign? Did the AdWords
campaign finally began to have a positive ROI because a
competitor who bidded up the cost per click stopped running
Google ads? If you know what is leading to your success
then you can repeat what is working (and stop what isn't
working).
Growth
Hackers Are
Analytical
ANALYTICS PREDICT
THE FUTURE FOR
GROWTH HACKERS
Companies make bets on the future everyday. They guess
what the competition will do. They guess what the market will
want. They guess at ways to skate to where the puck is going,
instead of where it’s been. They guess. Let me be clear, the
future will always be a guess to some extent, but inductive
reasoning based on analytics allow us to make informed
decisions about tomorrow, based on yesterday’s data.
Will the sun rise tomorrow? Technically, there is not a
deductive way to know, but inductively we can reason that it
will since it always has. When you look at your charts and
there is clearly a line moving in a particular direction there is
no guarantee that it will stay the course, but if other factors
remain the same, it probably will. This isn’t an exact science,
but it’s better than guessing.
Growth
Hackers Are
Analytical
GROWTH HACKERS
ARE T-SHAPED
Growth hacking seems mysterious, but it really isn’t. A growth hacker is less like
an illusionist and more like a marathoner. There’s no smoke and mirrors here,
but rather a lot of hard work to master the skills that pertain to growth.
GROWTH HACKERS ARE RIGHT BRAINED
If growth hacking was just a matter of trying five or ten things and then
watching the users signup and the money roll in, then there would be
no need for a book like this. The truth is that growth hacking only looks
GROWTH simple once you've found out the things that work for your product.
Until then you have to try hundreds of dead ends.
HACKERS ARE
OBESSIVE WITH ENOUGH PAPERCUTS
YOU CAN KILL YOUR COMPETITION
There is sometimes the assumption that all you need is one
breakthrough to win. One big awesome growth h ack to own your
market. I do think that you can kill your competition, but it usually
occurs because of a million micro-lacerations, not one huge one.
Small successes compound over time. If you are able to stay the
course and improve your numbers day by day, then you II look up after
a year and realize that you actually moved the needle in some pretty
remarkable ways, but there might not be a breakthrough moment.
CHAPTER 3
THE GROWTH HACKING
PROCESS
THE GROWTH HACKING PROCESS
Many people have a hard time knowing when they’ve narrowed their goal enough. Here is a
rule of thumb that I use. Think about your goals as nested hierarchies,
tasks which can be completed once and for all, then you’re not narrow enough. In this case
our hierarchy might look something like this As an Example:
Actionable
Goals
C H A P T ER
3 T H E G R O W T H H A C K I N G PROCESS
INCREASE DAU
INCREASE
RETENTION
INCREASE CONTENT
CREATION BY
MEMBERS
C H A P T ER
3 T H E G R O W T H H A C K I N G PROCESS
Will there ever conceivably be a day when you can mark off "grow my startup" from a to-do list? No. The goal is too broad.
Is there ever going to be a time when you can say that you've finished "increasing DAU “ No. Too broad. However, you
can mark off that you've "educated members about content creation through an email." When you find yourself at the part
Of the hierarchy that can be checked Off as done, then you 've narrowed your goal appropriately.
C H A P T ER
3 T H E G R O W T H H A C K I N G PROCESS
Without analytics, goals are empty. If you can't definitively say when a goal has been reached then you have not completed
the requisite requirements before moving ahead. Furthermore, analytics will give you valuable data which can change your
goals. Your analytics and your goals create a reflexive equilibrium, where they actual inform, refine, and shape each other.
C H A P T ER
3 T H E G R O W T H H A C K I N G PROCESS
Every startup has inherent strengths or assets that can be used as leverage. When there is something at your disposal
which requires little energy, but can produce big results, then you've found a lever.
Plans, goals, and tasks, that are stack-ranked in a vacuum, without concern for leverage, are
usually mis-ordered. Plan your attack based on strengths. I would recommend reading chapters 3-6
of this book and then give each tactic that is mentioned a score based on your company s specific
leverage.
C H A P T ER
3 T H E G R O W T H H A C K I N G PROCESS
Increasing content creation by 2x. You’ve already completed step 2, and now you are tracking the
necessary data that will tell you if you’re successful in your goal. You’ve already completed step 3,
and now you are going to focus on educating your members through an email blast, since this is
where you possess leverage. Now it’s time to execute the experiment, which means actually
sending an email in this case. Here are some things to keep in mind as you execute the experiment
(note: we call them experiments at this point because no one really knows what will happen):
Before you actually run the experiment you should write down your best guesses at to what will happen. Do you think this
email will have a higher or lower click through rate than the emails you already send? Why do you think this? How much do
you think the email will increase content creation over the next month? Will it single handedly give you the 2x content
creation goal you’re shooting for, or do you think it will get you part of the way there?
It may seem silly to write these kinds of things down when you can just send the email and find out what’s going to happen. I f
that’s your attitude then you’re missing the point. Hypotheses are accurate reflections of your assumption before
you are given the chance to rewrite the past to make yourself look like a genius.
For instance, imagine that you write down the hypothesis that the click through rate will be lower because you already send
users one email a week, and you think the second email will annoy them. Then you run the experiment and it has a higher
click through rate. If there wasn’t proof of your wrong hypothesis you would be tempted to rewrite history, and you would tell
the team members that this is what you expected to happen because you’re such a godsend to the startup world. Hypothesis
keep you honest
GROWTH
HACKING
PROCESS
Anytime you run experiments it is going to disrupt the normal flow of events in your startup. First, the entire team needs to
be notified about upcoming experiments so that they can be ready for any mishaps that might occur.
Second, know when your startup is already resource constrained, and be mindful of this when planning your experiments. If
Tuesdays are when the server is already on the brink of failure, then don’t do something that will send 30% more traffic on
that day if you can avoid it. Third, If you need a certain amount of time to finish the components of the experiment before it
can be ran, then don’t overlook the time requirements needed.
GROWTH
HACKING
PROCESS
Like we mentioned in the last chapter, most things fail. It’s ok to be optimistic (hey, it keeps me going too), but then you
can’t be devastated every time an experiment produces mediocre results. That`s what a defined goal should be attacked
from multiple angles. Most of the attacks simply won’t work.
It always takes longer than you expect, even
when you take into account Hofstadter's Law.
Hofstadter's Law
GROWTH
HACKING
PROCESS
4- LEARN FROM
SUCCESS AND FAILURE
Data is like publicity. There is no such thing as bad publicity and there is no such thing as bad data. Even if an experiment
fails you will have undoubted- ly gathered a lot of information about your product and your users that can be used in future
experiments. Thomas Edison failed more than 1,000 times when trying to create his light bulb. When asked about it,
Edison allegedly said, "I have not failed 1,000 times. I have successfully discovered 1,000 ways to not make a light bulb."
You can learn from successes, and you can learn from failures. You only stop learning when you give up.
C H A P T ER
T H E G R O W T H H A C K I N G PROCESS
Experiments are meant to be optimized. Experiments are fluid. They are not things you do one time
and then move on. You tweak experiments. You re-run experiments. You only give up on
experiments when it’s appropriate to do so, not when you’ve grown tired of them.
GROUP A GROUP B
(TEST GROUP) (CONTROL GROUP)
CONTENT CREATION
+/- (AFTER EXPERIMENT)
-10% -15%
GROWTH
HACKING
PROCESS
A/B tests are championed by growth hackers for a reason. They’re magical! You may think you know
what the subject line of an email should be to ensure it’s opened, but an A/B test will tell you the truth.
You may think you know what landing page the email should send them to, so that they will start
creating content, but an A/B will tell you the truth. There are very few tools that create such large
gains overall. Remember, if you are going to run A/B tests then you must decide this before you start
running an experiment. Otherwise, in our example, you would have emailed everyone on your list and
then there would be no one left to benefit from what you are learning.
GROWTH
HACKING
PROCESS
C. WHEN TO GIVE UP
ON AN EXPERIMENT
I usually will not give up on an experiment until my leverage has proven to be weaker than I initially
thought, or I can’t logically conceive of the experiment yielding better results without an inordinate
amount of resources dedicated to it.
C H A P T ER
3 T H E G R O W T H H A C K I N G PROCESS
Now it’s time to select a new experiment, or an optimized version of a previous experiment,
and move through these steps all over again. If you work the system that I’ve
enumerated here, then success is more a byproduct of tenacity, and less a child of luck.
CHAPTER 4
THE GROWTH HACKER
FUNNEL
GROWTH If you are building a product then your task is to guide people towards a particular
goal (signup, checkout, etc.). The problem is that people are unpredictable and full
HACKING of free-will. If you are going to get people to do what you wish, en masse, then you
must employ a funnel. When you think about growth hacking the image of this funnel
FUNNEL should dominate your understanding:
DEFINING THE THREE
LEVELS OF THE FUNNEL
If you are building a product then your task is to guide people
towards a particular goal (signup, checkout, etc.). The problem GET
is that people are unpredictable and full of free-will. If you are VISITORS
going to get people to do what you wish, en masse, then you
must employ a funnel. When you think about growth hacking the
image of this funnel should dominate your understanding:
ACTIVATE
MEMBERS
DEFINING THE THREE LEVELS OF THE FUNNEL
first goal in the funnel is to get visitors. This is the act Of getting
any- one to visit your website or app for the first time. They are
called visitors at this stage because they don't belong to you yet.
They haven't opted in to any- thing. They aren't members, or users, RETAIN
because that would imply that they have some sort of relationship USERS
to you, and they don't. They are just strangers that just happen to
be on your site. They are visitors. There are three, and only three,
ways to get someone to visit your website or app. You can pull
them n, push them in, or use the product to bring them in. The
three P's will be the topic of the next chapter.
DEFINING THE THREE LEVELS OF THE FUNNEL
GET
VISITORS
RETAINING A USER IS
LIKE GETTING MARRIED. ACTIVATE
MEMBERS
RETAIN
USERS
WHAT ARE GOOD CONVERSION
RATES FOR THIS FUNNEL?
One of the great difficulties of utilizing this funnel for your company is knowing
what good conversion rates actually are. As you move down the funnel, less and
less people stick around. In a given month, you might get 100k visitors, but only
1k members (1% conversion), and only 700 retained users (70% conversion). Are
these numbers good? It’s almost impossible to know for a number of reasons:
Is your traffic from a source that would identify with your product, or ❑
are they people that should bounce as soon as they read your first
headline. Certain traffic sources will always convert to members at
higher rates
Does y our activation goal include a purchase or are you simply trying ❑
to get an email address on file? The more you ask for the lower the
conversion rate will be.
Ratios throughout the funnel are not siloed. You might do something ❑
that drives up visitors by 1,000%, but by doing so it drives down
retention by .05%. If you make this change and then dwell on the fact
that your retention dropped then you’d be missing the point. The
retention ratio is going down, but the number or retained users is
actually going up. Your goal is to create conversion rates throughout all What We
the stages of the funnel that work together to create the largest overall
impact. Don’t miss the forest for the trees. Do Now?
LET THE FUNNEL SET YOUR
GROWTH HACKING PRIORITIES
As you consider where to place your energy, the funnel can sometimes make this decision for you. If you
are converting 50% of all visitors to members, and 50% of all members to users, but you are only getting
200 new unique visitors a day then you should obviously spend your time getting visitors. In other
situations you might want to wait on getting visitors until you are more successful at moving people
through other aspects of the funnel.
On a related notes, Sean Ellis has popularized the idea of product-market fit, which has a lot
of value as you decide your priorities using this funnel. Sean has often said that if at least
40% of your existing users wouldn’t be “very disappointed” if your product disappeared then IT ALL BEGAN
you don’t yet have product-market fit. This basically means that your product doesn’t solve
enough of a pain. It isn’t adequately loved by the users, and the team needs to focus on
WITH PIRATES
product more than growth. His overall point is that you shouldn`t try to find new visitors, or Click HERE
optimize the funnel for them, until you have a product that people actually want.
This creates a little bit of a catch 22. If you don’t have any traffic then you won’t have users
to poll as you try to find out how disappointed they would be in your absence. However,
focusing solely on growth would be a bad move, as you’d be optimizing in vain if your core
offering is lacking
Therefore, here is what I recommend. Use this funnel, use the process from the previous
chapter, and use the tactics in the following chapters, to get an adequate user base. Then,
circle back to them to find out how well your product fits their needs before taking things to
the next level. You have to grow some to know if you’re even on the right path to grow
more. Just don’t put yourself in a situation where you are expending massive energy in an
attempt to growth hack a product that people don’t love. It’s that simple.
Most companies only track three things
TRAFF IC
US E R S
R EVEN UE
Phase 1 Phase 2 Phase 3 Phase 4 Phase 5
Get Get
Traffic ? Users ? Profit
The Magic Is
What Happens
In Between!
IT ALL BEGAN WITH
PIRATES PIRATES METRICS
“ AARRR “
??
CREATES AN VISITS AGAIN
ACCOUNT LATER
You need to measure conversions at each step
1744
1% 18% 0%
17 3 0
Acquisition Activation Retention Revenue
AT FIRST YOUR NUMBERS WILL BE
REALLY NOT GOOD
1744
FOCUS
HER E
1% 18% 0%
17 3 0
Acquisition Activation Retention Revenue
TIPS
Time
it views CUSTOMERS as
an afterthought, not a
driving force.
FUNNEL TO FLYWHEEL
Funnels produce customers but don’t consider how those
customers can help you grow. There is no way to reinvest
what comes out at the bottom to get more at the top to
continue to feed growth over time.
Every business is different, and the way you design your flywheel is dependent on your business model. Figure out
the teams and areas of your business that have the biggest impact on growth. Ask yourself, “how does my product
grow?” and personalize your flywheel by leveraging those insights and applying force to those areas.
Pinterest
The driving force behind Pinterest’s growth is:
At HubSpot, shifting to the flywheel model helped them change in the following ways:
2. Friction kills flywheels. They’ve made investments that systematically target thier
biggest points of friction: Great free software as an entry point, channels that help
people connect now instead of later, a sales process that solves for prospects,
and a broad range of customer education.
FLYWHEEL
RESOURCES
➢ Flywheel Model
SEO Contests
➢ INSTANT RETWEETS
7. SEO
Even today, SEO is considered as the
So, when you create a lot of such content, search engines will soon
primary way to get maximum traffic to your
realize that you have high authority on the topic of your interest.
website. This is simply because thousands
Eventually, your website rankings will increase, and give another
of people search for product information by
chance to your potential customers to visit your website. However,
using popular search engines. In this case,
there are really two kinds of SEO strategies. I call them:
your efforts of writing eBooks, user guides,
and whitepapers about something related content and code.
to your business are worth it.
➢ However, this requires you to interact with
your potential customers on a regular
basis, but once your social media
activities are carried out professionally,
FUNDAMENTALS the results will be worth noticing.
9. CONTESTS
➢ Give away gifts which are actually meaningful to your potential
For startups, contests are an customers. Also, the gift should represent your company.
amazing way to drive traffic. You can ➢ A free trip to a memorable destination may mean a lot to your
pull your potential customers to get potential customers than just giving them an iPad. So, give away
in touch with your products or experiences too.
services by following ways:
➢ Do not announce the giveaway of a grand prize. Instead, divide it to
first, second, and third prize.
➢ B2C APP MARKETPLACES
FUNDAMENTALS If your company made an app for a
consumer then you’ll probably be in a
OF A PULL B2C app store like the Apple App
Store.
STRATEGY
Purchase ads •
Promo Swap “ Cross Promotions “ •
Affiliates •
Direct Sales •
FUNDAMENTALS
PURCHASE ADS OF A PUSH
STRATEGY
When it comes to selling your product to your online customers,
purchasing ads can help you accomplish your goal. However, this requires
you to identify the right platform of purchasing ads. Is your target
audience familiar with the platform you have placed your ad in? Did your
potential customers even see that ad? To answer these questions correctly,
it is necessary to choose an ad platform which aligns well with your target
audience. Here are some things you must keep in mind as you approach
this push tactic:
▪ SWAP TWEETS
▪ SWAP FACEBOOK POSTS • AD SPACE SWAP
▪ DEDICATED EMAIL SWAP • PRE-ROLL VIDEO SWAP
▪ SPONSORED EMAIL SWAP • GIVEAWAY SWAP
AFFILIATES
One more tactic to push customers to view
your website is hiring affiliates. This is
when you have to pay a person for
reaching a specific goal for your company,
such as, activating any member or bringing
a visitor to the website. Here, the main
purpose is to assign a responsibility of
increasing your website traffic to someone
rather than worrying about it. Here are a
few things to know if you are
FUNDAMENTALS OF A PUSH STRATEGY
going to use this tactic:
Have a look below how to apply product tactics the right way:
o NETWORK INVITATIONS
o SOCIAL SHARING
o API INTEGRATIONS
o BACKLINKS
o INCENTIVES
o ORGANIC “Word-of-Mouth Marketing”
1. Network Invitations
In this competitive world of networks, people are
already into a number of networks depending on
their interests. Some of the examples include
LinkedIn, Email, Facebook, Twitter, and Pinterest.
This is where you need to show your product too.
Once your product is present in a relevant
network, it is time to invite your prospects to join
the network.
“Traction Bullseye”
CHAPTER 8
HOW TO ACTIVATE
MEMBERS
ACTIVATING USERS
TECHNIQUES
Now that you have read about the tactics to bring
visitors to your website, you are going to accomplish
your goal of increasing your website traffic soon. But
remember that these are just visitors, and not your
-40 customers. They need to be activated and retained so
that they remain the source of your revenue, but how
to make this possible? Read on, and find out the
answer.
❖ CONGRUOUS LANGUAGE
Since you know the source of a person that ends up on a particular landing page
then you can tailor the experience for them. You should use language which will
appeal to them, even if it doesn’t appeal to your visitors at large. The language, and
even imagery, of your landing page should be congruous with their expectations
based on the source they came from.
If you want your website visitors to like the image you have created about your
company, then the first thing you should do is to focus on your content. Are the words
powerful enough to influence their purchase decisions? They will get impressed and
will purchase your product only if your words are really louder than their perception.
Make this possible by following these tips:
ACTIVATING
USERS TECHNIQUES
v.GAMIFICATION
PROGRESS Bar
Who doesn’t love progressing, leveling up, and completing tasks more
efficiently than others, and getting awards? If everybody loves this, then
your potential customers may love it too. This is considered as another
Growth Hacking technique in which you are required to implement game
mechanics to sell your product. LEADERBOARDS
This is a profitable technique through which you can activate your website
visitors, and turn them into loyal customers. If you offer them any kind of
award to purchase a certain number of products, and promise to mention their
name as the winner on your website, then most of them will be ready to spend
money on purchasing your product.
Without facing any loss, set a pricing strategy by dividing your website visitors into
multiple tiers. Mention the prices of your different products on your website to give
them an idea that the products they are interested in are not as expensive as they
might have perceived.
ACTIVATING
USERS TECHNIQUES
MULTIPLE TIERS
Another popular strategy to activate purchases is to have three
pricing tiers. Just the fact that there is a more expensive option
makes you feel like you’re not wasting money, and you are getting a
good deal. Options give people confidence to buy.
ACTIVATING
USERS TECHNIQUES
FREE TRIALS
People are afraid to make an irreversible mistake with their money. If
you give them a money back guarantee, or a free trial of some kind,
then you are taking the risk away from them and placing it on
yourself.
DISCOUNT CODES
One of the most powerful forces, in terms of getting someone to make a
purchase, is a discount code. But there is a trick that makes discount
codes even more effective.
BUNDLING
Another way to get people to make a purchase is through bundling your
ACTIVATING product with other products. If you can overwhelm people with value then
they are more willing to make a buying decision. Hacker Bundle is a good
USERS TECHNIQUES example of a service that uses this activation tactic.
CHAPTER 9
HOW TO RETAIN
USERS
R E TA I N
USERS
if you retain them then they are literally using your product often. If you are
a SaaS company then this means lowering your churn. If you are an
ecommerce site then this means helping people become repeat buyers. If
you are a content company then this means getting people to consume
your content on a regular basis. You get the point. Many growth hackers
actually consider retention the most important aspect of the funnel. There
are a number of reasons for this:
❑ An increase in retention increases the lifetime value of the customer (LTV). This
opens up the potential to try a number of push methods at the top of the funnel
that might not have been possible before, Retention benefits the funnel as whole
more than we sometimes realize.
❑ People that have been retained for long periods of time are more likely to
evangelize for your product. If your product is built into their weekly routine then
they are going to talk to their friends about it, take it into the workplace, and
generally be an advocate for you.
RETENTION
TA C T IC S
- Retention, like anything, is a skill set that can be learned. Here are the tactics that we
recommend trying as you focus on retention:
STAGED TRAFFIC
It would be smaller to try a single tactic and use only some of your resources just so
that you can track the progress Of your traffic through your funnel. Then you can fix the
obvious holes that were uncovered using this test traffic. Now when you spend more Of
your resources on traffic your product will be better optimized to capitalize on it. In
essence, you test your funnel, including retention, when the stakes are low, so that when
it’s time to accelerate growth you've done the requisite work that will allow your product
to handle it. Early on, stage your traffic in order to master retention.
SPEED TO AHA
Even if a lot of people from your target market have purchased
your product, there is no guarantee that they will return to your
website for a repeat purchase. If they do, it means that you
have successfully retained them! You can do this by bringing
that “WOW Factor” to your product. Introduce something with
your product the competitors do not currently offer them. Your
customers will more likely feel that they are special for you
There are number of different
kinds of Emails that your
DON’T FEAR EMAIL product should send, and they
each have their own purpose.
Emails are perceived to be the
worst thing a customer can DRIP CAMPAIGNS:
receive from a company. A drip campaign is when you send
people prewritten emails at preselected
However, there are a lot of intervals.
positive facts about email
distribution that justify that A new member might get an email on
day 1, day 3, day 7, day 14, and day 21.
emails can do wonders in terms You can use a drip campaign to
of retaining customers. However, introduce them to your product, share
when you work on this, make testimonials, give them case studies or
other inspirational reasons to use your
sure that you do not irritate product, and many other things. A drip
your customers by repeating campaign burns your product into
them. To avoid this situation, people’s minds when they are most
impressionable, right after they’ve
there should be something new signed up.
to offer your customers through
an email, such as, event-based Every email sent is a chance to bring
them back into your product and retain
notifications them. Fools ignore drip campaigns.
DON’T FEAR EMAIL
EVENT BASED NOTIFICATIONS
We are all familiar with these because of
Facebook. Every time someone does
anything which is remotely related to us GENERAL UPDATES
on their social network then we get an People love to see how other people
email notifying us about it. Facebook has work (it’s a weird obsession, I know), so
become very clever with their event use
based emails, and one of the things they these emails to also give people a
do is force you to click through to their behind the scenes view of your company.
website to get the most out of their Show
emails. They tell me that someone liked them photos of your new workspace.
a photo I was in, but I have to Show them an image of your team next
click a call to action to see the photo. to the
This is smart because once I’m back on company logo. If people feel like they
their site then I’m sucked into the know you then they will be more likely
Facebook world again. What actions are to be
people already taking in your product retained by you.
that could also warrant an email?
ALERTS AND EXIT
NOTIFICATIONS INTERVIEWS
If you are building a mobile When people cancel your service,
app then in addition to email or go long periods of time being
you have another avenue inactive, or generally show
available to get people back themselves to not be retained,
into your product. You can then you have an opportunity to
also use alerts and learn from them. I would
notifications to help retain recommend emailing them and
users. Are you currently asking them the worst thing about
using push notifications your product that made them
within your mobile app? Are cancel (or whatever the
you currently using badges appropriate verbiage is for your
to alert people to new situation). Just cut to the chase
features, or new updates, or and ask them what sucks the
anything else? Remember, most. Have thick skin. You can
people can turn off alerts use the responses of this exit
and notifications within their interview to inform the product
settings. Let people roadmap, and thereby increase
manage their own life, and future retention.
send them relevant updates.
THE RED CARPET
It may be that a new competitor has entered the market, and your
first 100 customers have started buying their brand. Will you be
able to bring them back? Yes, but you should give them something
extra now. This can be anything such as, sending 100 t-shirts to
the first hundred customers, conducting a lucky draw for the free
trip to a destination, or mentioning your loyal users in your email
newsletters. Here some ways that you can give the red carpet
treatment to your best users:
At the heart of any product is the value it provides. This means that
keeping one eye on the value of your product is always going to help
retention. Just because someone found value in your product on day
1 doesn`t mean they will necessarily find value in it on day 100. You
have to always stay ahead of the value curve if you want to retain
users. Here are a few generic ways to provide value:
• ADD FEATURES
• SUBTRACT FEATURES
❑ CUSTOMER SUPPORT: Great customer support is always the
key to the best service and satisfaction to customers
GROWTH
What you need to know
What you need to know
PRODUCT
GROWTH
A Technique For Producing New Ideas
Step 1: Gather Raw Materials
Step 2: Digest The Materials
Step 3: Unconscious Processing
Step 4: The A-HA Moment
Step 5: Idea Meets Reality
RESOURCES
If you don't know where you are going,
any road will get you there.
Lewis Carroll, Author of Alice in Wonderland
• WHEN YOU’VE ALREADY GOT USAGE, ANALYZE IT.
The Typical
60 Features Usage
50
What percentage of
your customers or 40 50%
users have adopted 30
each feature? 20
18%
Intercom on Product Management
10
0
Jan Feb March April
PRODUCT
GROWTH
Growth Is Not
One-Size Fits All
Growth is a company-wide
mindset.
Netflix
knows that
growth is
cultural
6. Transparent community-based
processes promote participation,
accountability and trust
CAHPTER 11
HOW TO ACTIVATE
MEMBERS
WHAT YOU NEED TO KNOW
What you need to Do
What you need to Do
PRODUCT
GROWTH
“
I ASK EXISTING USERS
OF A PRODUCT HOW
THEY WOULD FEEL IF
THEY COULD NO
LONGER USE THE
PRODUCT.
SEAN ELLIS
“
If you’re above 40% of the
people saying they’d be
very disappointed, I tend to
say you’ve found
Product/Market fit, and if
you’re less than that, you
haven’t.
SEAN ELLIS
EXAMPLE: WE
PROVED THAT
GOOGLE
ANALYTICS HAS
PRODUCT/MARK
ET FIT
“
You’ll Create The Best Product If
You Know More About Customers
Than Your Competitors And You
Act On That Knowledge.
HITEN SHAH
THERE ARE EVEN MORE
WAYS TO ASSESS
PRODUCT/MARKET FIT
QUALITATIVELY…
NET
PROMOTER
SCORE (NPS)
delighted.com
WHY DO
PEOPLE
SIGN UP?
qualaroo.com
WHAT DO
THEY EXPECT
FROM YOUR
SOLUTION?
intercom.io
WHY DID
THEY BUY?
qualaroo.com
WHY DID THEY
VISIT CERTAIN
PAGES?
qualaroo.com
WHY DID THEY
DECIDE TO
CHECK IT OUT?
qualaroo.com
WHAT PROBLEMS
ARE THEY TRYING
TO SOLVE?
qualaroo.com
WHAT
OTHER SOLUTIONS
DID THEY CONSIDER?
qualaroo.com
WHAT
FRUSTRATES
THEM?
intercom.io
WHY ARE THEY
CANCELING?
lesschurn.io
WHY ARE THEY
CANCELING?
surveymonkey.com
WHY ARE THEY
CANCELING?
surveymonkey.com
PRODUCT
GROWTH
Only 1 out of 5 tests win.
$
Five ways that products can grow themselves
Powered By
Work Emails
Embeds
Integrations
Invites / Referrals
1.67 out of 5 tests win
(5 of our last 15 tests won)
TIPS
Time
GENERAL ANALYTICS
Analytics is by far the most popular analytics platform for general data. Its free and it’s very powerful.
Google Analytics is best for high level overviews of your product, but it is difficult to use for granular
event or people based analytics (like the kind of tracking that is becoming popular). If you want to
watch geography data, device data, bounce data, and other common metrics, then this is a great tool.
However, if you are trying to figure out if people churn less after they watch your demo video (a kind of
event/people based analytics) then you are going to have difficulties.
It simply wasn't built to provide this kind of information. Most companies have a number of analytics
platforms running simultaneously, so despite the drawback* of Google Analytics you should still have it
installed.
The most common analytics tools
TOOLS used by growth hackers fall into a
few broad categories:
When you install Google Analytics then you place a single piece of JavaScript in each page of
your site. When you install event/people based analytics tools then you actually attach a script to
each event on your site (not just the site as a whole). This simple change opens up huge
possibilities. Now you can get an answer to the following kinds of questions:
NICHE ANALYTICS
CUSTOM ANALYTICS
If you are selling software subscriptions then a KPI would be how many new
subscriptions you have sold today. Another KPI would be how many people
canceled their subscription today.
A KPI is not an obscure data point that doesn’t have meaning unless it’s ran
through a complicated equation. A KPI is a number that matters for obvious
reasons, and by simply looking at you can get a sense of company trends and
company health. Here are a few best practices around KPIs:
TERMINOLOGY This is far from an exhaustive list, but following are some of
the terms that you will hear often in growth hacking circles
❖ Here some Going viral is based on an equation. It's not just a phrase thrown around to
describe something that is seemingly everywhere online.
❖ A viral coefficient over 1 is a great thing, but even if you are below 1 it's still a benefit to
the company. Virality isn't always the goal (or even possible). Anything above o means
that you are amplifying your product distribution to some degree.
❖ Virality is probably focused on too much. Growth hacking is a large set of skills, and it's
possible to grow a product substantially, and profitably, without worrying about virality.
TERMINOLOGY This is far from an exhaustive list, but following are some of
the terms that you will hear often in growth hacking circles
COHORTS
SEGMENTS
Segments are like cohorts, but instead of basing the group on signup date, you
base the group on other segmenting factors. You might categorize your users into
male and females groups, in order to see how they behave differently. You could
even break cohorts into segments if this gives you relevant data for your product.
Segments come in handy when calculating LTV because you might discover that
certain segments of your users have a much higher LTV than other users. This will
effect also the CAC
TERMINOLOGY This is far from an exhaustive list, but following are some of
the terms that you will hear often in growth hacking circles
MULTIVARIATE TESTING
Multivariate testing (or A/B testing) is when you make product changes
that are only seen by some of your users. This gives you some people
that see the A version of your product and other people that see the B
version of your product. Then you can see if version A or B gives you
the results you want. A debate within multivariate testing is whether or
not multi-armed bandit testing is the best kind of A/B test. Bandit testing
is a continuous form of A/B testing that always send people toward
the best performing options. In essence, the experiment never ends. I’m not going
to get into this debate here, but I wanted you to know that there is a debate.
TERMINOLOGY Conversion Rate Optimization (CRO)
CRO refers to the process of making changes to a website or landing page with the goal of increasing the
number of online visitors that take a specific conversion action (for example, completing a lead generation
form or purchasing a product).
Split Testing
The two types of split testing –A/B split testing and multivariate testing –involve conducting controlled,
randomized website tests that present website visitors with different combinations of text and images in
order to uncover the winning combination that improves a specific website metric. For example, a website
using A/B split testing might randomly deploy two versions of a landing page with different headlines to see
which contributes to more purchases.
Call-to-Action (CTA)
A call-to-action is a piece of text or an image that exhorts visitors to take a specific action. A “Buy Now’
button is a CTA, as is a closing paragraph to a blog post that reads, “Take advantage of this special offer
now by completing the form below.”
TERMINOLOGY Pivot
According to Steve Blank, a pivot is a fundamental change in a business’s customer segment, channel,
revenue model/pricing, resources, activities, costs, partners or customer acquisition strategy. Pivots occur
when untested business hypotheses are disproven, requiring a change in one or more elements
underpinning these assumptions.
Growth Experiment
A potential growth hack, currently in the experimental stage.
A/B Testing
Comparing 2 versions to check which performs better, usually by changing one element at a time.
CRO
Conversion Rate Optimization.
Deep Dive
Hustle
Working outside your comfort zone in the growth hacking execution phase.
ICE Score
Impact-Certainty-Ease Score. ICE and scored from 1 to 10 and divided by 3. Use best judgement.
Iterating
The cycle of Experiment > Adjust > Experiment repeated and analyzed.
TERMINOLOGY
Sprint
A set period of time when the team works to execute a specific process usually growth experiments typically
last 30 days.
T-Shape
Breadth and Depth of knowledge, growth hackers leverage each other's core competency to run campaigns
as a team.
TERMINOLOGY
Cohort Portion
of the users based on WHEN they signed up.
Example: November Cohort = Everyone who signed up in November. If you
don't use cohorts you're looking at overall data which is skewed because of
bad cohorts hence you won't be able to make the right decisions.
Viral Mechanics
Engineering growth (virality) into the product itself.
TERMINOLOGY
One Metric That Matters (OMTM)
As an alternative to a set of KPIs, some growth hackers prefer to focus on “one metric that matters.” This
OMTM might be any of the metrics listed below, or it could be any other data point that provides an overall
snapshot of the business’s progress.
Churn Rate
METRICS
Churn rate refers to the percentage of customers that stop subscribing to a service. If your business
involves a free trial or a month-to-month subscription, your churn rate would be the percentage of prospects
that fall out of your trial period without subscribing, or the percentage of customers that cancel their paid
subscriptions during any given month.
A less commonly used growth metric is a business’s NPS, which is a score falling between -100 and 100
that measures customers’ willingness to recommend a company to others. This score can be helpful in
detecting changes in consumer sentiment, but does not always directly tie to revenue or growth.
Burn rate
METRICS
Burn rate refers to the speed at which an entrepreneur or startup spends its money. As an example, if
Startup A earns a $500,000 fundraising round and spends an average of $10,000/month on everything from
paid ads to paperclips, its $10,000/month burn rate gives it approximately 50 months of capital.
Describes the lifetime of any channel potentially used for growth hacking in 3 phases - Early Adopters
(Hacks), Early Majority (Organic), Late Majority (Paid).
O2I Hacking
User Personas
Detailed definitions of how your target audience looks.
Channel Personas
Detailed definition of how your target channels look.
Growth Triangle
Relationship between Patience, Budgets and Growth explaining the need for growth hacking.
RESOURCES HOW TO GET STARTED
Buffer Social – “Idea to Paying Customers in 7 Weeks: How We Did It”
The Muse – “You Have an Idea – Now What? 3 First Steps for Your Startup”
Tomasz Tunguz – “The 3 Minute Technique for Brainstorming Your Startup’s Product Roadmap”
The Next Web – “Creating Customers for Life: 50 Resources on Loyalty, Churn and Customer Retention”
Clarity – “Measuring the Health of Your SaaS Business: the Ultimate Metrics Guide”
Roy Povarchik – “7 Metrics Every Ecommerce Marketer Should Follow to Achieve Growth”
RESOURCES
CONVERSION RATE OPTIMIZATION
Conversion XL – “Unlocking Your Company’s Growth Engine with Conversion Rate Optimization”
Perception IT – “Some Minor Changes Can Give Big Increment in Conversion Rates”
The Agency Post – “The 50/50 Experiment: A New Technique for Growth Hacking”
Growth Hackers – “How Do You Capture and Manage Your Ideas for Growth Hacking Experiments”
PARTNERSHIP CONSIDERATIONS
Perception IT – “Major Things to Know About Entry-Level Business Development & Partnerships”
RESOURCES RAISING MONEY
Clarity – “Then & Now: Youngest Person to Raise VC Shares His Growth Path”
Blonde2.0 Blog – “How We Helped Raise $75,000 for an Indiegogo Campaign – Step-by-Step”
Jay Gould – “Value is What You Create – Price is What You Get”
RESOURCES BUILDING A TEAM
Social Media Today – “How to Assemble a Content Marketing Team for Your Blog”
Tomasz Tunguz – “Startup Best Practices #9 – Structuring One on OnesTo Maximize Your Team’sSuccess”
BUILDING A TEAM
Social Media Today – “How to Assemble a Content Marketing Team for Your Blog”
Tomasz Tunguz – “Startup Best Practices #9 – Structuring One on OnesTo Maximize Your Team’sSuccess”
OTHER RESOURCES and TOOLS
RESOURCES
Why traction is overrated - Retention _ engagement hacking and product analytics
The Ultimate Guide to Growth Hacking 168 Resources to Help You Become a Growth Hacker
The Ultimate Growth Hacking Sourcebook - Pirates Matrex
The Idiot Proof Guide to Making Money with Growth Hacking
The Growth Manifesto - Everything about growth Hacking
The Growth Hackers Guide to The Galaxy - Study Cases
The 10 Growth Hacking Articles that Broke the Internet by Vin Clancy
Steps to be a Growth Hacker
Mobile App Growth Hacking
100 Growth Hacking Things
140 Growth Hacks
Growth Hacking Resources
How to get 1 million swipes - Instagram
FAQs of Growth
Hacking
❑ Question: When should I choose Growth Hacking over other
marketing strategies?
Answer: You should choose Growth Hacking for sure if you have
a startup. Since you cannot afford to spend a lot on intense
advertising, Growth Hacking can turn out to be the safest option
to drive sales for your business.
Answer: If you know who your target audience is, how to carry out
some of the complex internet marketing activities required in Growth
Hacking, and how to work with the analytics then it is an easy game
for you. However, if you are new to this form of marketing, then hiring
an experienced growth hacker is a better option.
FAQs of Growth
Hacking
However, you can use each and every part of it only if you
are well aware of the tactics, techniques, and tools of
Growth Hacking. To ensure that you do it in the best way
possible, keep having an idea about the most useful
Growth Hacking strategies by consulting this book.