Transcript
The 500 Growth Process
Chandini Ammineni Distribution Partner
@ammineni
@ammineni #MHW #500STRONG
Should my startup focus on “Growth”?
Depends on stage of startup
@ammineni #MHW #500STRONG
Pre P/M Fit Post P/M Fit
GOAL P/M fit Scalable, repeatable, predictable growth
METRIC Engagement, Retention Growth Rate
DATA Qualitative + quantitative Quantitative + qualitative
GROWTH STRATEGY Hustle Build a Growth Machine
@ammineni #MHW #500STRONG
Pre P/M Fit Post P/M Fit
GOAL P/M fit Scalable, repeatable, predictable growth
METRIC Engagement, Retention Growth Rate
DATA Qualitative + quantitative Quantitative + qualitative
GROWTH STRATEGY Hustle Build a Growth Machine
@ammineni #MHW #500STRONG
Product-Market Fit
A product that solves a problem “well enough” for a “big enough” market
@ammineni #MHW #500STRONG
Early Stage - Pre-P/M Fit
Non-Scalable work
Macro-Iterations on:
• product features • messaging • target audience
@ammineni #MHW #500STRONG
Qualitative Data
NPS
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Quantitative DataRetention
Img credit: Brian Balfour
@ammineni #MHW #500STRONG
Pre P/M Fit Post P/M Fit
GOAL P/M fit Scalable, repeatable, predictable growth
METRIC Engagement, Retention Growth Rate
DATA Qualitative + quantitative Quantitative + qualitative
GROWTH STRATEGY Hustle Build a Growth Machine
@ammineni #MHW #500STRONG
Pre P/M Fit Post P/M Fit
GOAL P/M fit Scalable, repeatable, predictable growth
METRIC Engagement, Retention Growth Rate
DATA Qualitative + quantitative Quantitative + qualitative
GROWTH STRATEGY Hustle Build a Growth Machine
@ammineni #MHW #500STRONG
Users Customers Revenue Gross Margin Profit…
Depends on $$ in bank
Growth Rate of What?
@ammineni #MHW #500STRONG
Pre P/M Fit Post P/M Fit
GOAL P/M fit Scalable, repeatable, predictable growth
METRIC Engagement, Retention Growth Rate
DATA Qualitative + quantitative Quantitative + qualitative
GROWTH STRATEGY Hustle Build a Growth Machine
@ammineni #MHW #500STRONG
Growth Machine
Not Tactics, but Mindset & Process, ingrained in culture
@ammineni #MHW #500STRONG
Growth Machine - Goal
OMTM
Start with the end objective in mind
@ammineni #MHW #500STRONG
@ammineni #MHW #500STRONG
Growth Machine
Brainstorm Experiments
Define GoalsPick Key MetricsHypotheses
ImplementAnalyze
Rinse & Repeat
$30k Monthly Revenue in 3 months
# of Visitors; Visitor to Purchase conversion rate
Lack of Trust
Testimonials; Return guarantees
Git ‘er doneTestimonials increased revenue by 20%
Systemize Productize or systemize
@ammineni #MHW #500STRONG
Growth Mindset• NO FAILURE
• Everything is a lesson learnt
• Hypotheses validated or invalidated
• Move Fast, Break Things, take Calculated Risks
• Momentum in testing required to outrun failures
• Faster Learnings = Faster Earnings
@ammineni #MHW #500STRONG
Focus here
Double down on what’s already working
Fixing leaks in your AARRR Funnel
@ammineni #MHW #500STRONG
Identify what already worksProduct: Core Value of product, Magic Moment - obvious post P/M fit
Acquisition: Top of Funnel Segmentation (homework)
Most Valuable Customers Customer Segmentation (homework) If applicable, Segment Product Category
Other: Customer Service, Brand Value - Qualitative feedback (homework)
@ammineni #MHW #500STRONG
Doubling Down - How?Doubling down on Product Reducing friction, referrals, push notifications…
Doubling down on Acquisition Spend more money, broader reach, expanding keyword list…
Doubling down on Most Valuable Customers Evangelists, heavy spenders, better acquisition targeting…
@ammineni #MHW #500STRONG
But, there’s a limit to Doubling Down
Product You can send only so many emails, push notifications, and referrals before returns diminish
Acquisition CPA starts to increase
@ammineni #MHW #500STRONG
Focus here
Double down on what’s already working
Fixing leaks in your AARRR Funnel
@ammineni #MHW #500STRONG
@ammineni #MHW #500STRONG
The Pirate FunnelEcommerceACQUISITION
REFERRAL
REVENUE
RETENTION
ACTIVATION100 add to cart
10 repeat
10 shares
30 purchases
1000 Visitors
@ammineni #MHW #500STRONG
The Pirate Funnel
ACQUISITION
REFERRAL
REVENUE
RETENTION
ACTIVATION
1000 Visitors
500 Accnts created
100 Users
50 Advocates
10 Customers
SaaS
10/1000 = 1% conversion rate
@ammineni #MHW #500STRONG
The Pirate Funnel
ACQUISITION
REFERRAL
REVENUE
RETENTION
ACTIVATION
1000 Visitors cvr = 50%
cvr = 20%
cvr = 10%
@ammineni #MHW #500STRONG
Funnel OptimizationFixing Leaks = Funnel Optimization
• Asking for signup/login after/during product value delivery
• Exit pop-up survey • Login with social credentials • Ad landing pages • Personalized user experience (geo, return user
experience..) • more…
@ammineni #MHW #500STRONG
The Pirate FunnelACQUISITION
REFERRAL
REVENUE
RETENTION
ACTIVATION
1000 Visitors cvr = 50%
cvr = 20%
cvr = 10%
Revenue = Visitors x activation cvr x retention cvr x revenue cvr x AOV
$2500 = 1000 x 0.5 x 0.2 x 0.1 x $250@ammineni #MHW #500STRONG
Bottom of funnel = Higher impact
@ammineni #MHW #500STRONG
Thank You
@ammineni #500STRONG
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