B17 mhw - intro to 500 distro

The 500 Growth Process

Chandini Ammineni Distribution Partner

@ammineni

@ammineni #MHW #500STRONG

Should my startup focus on “Growth”?

Depends on stage of startup


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








Product-Market Fit

A product that solves a problem “well enough” for a “big enough” market


Early Stage - Pre-P/M Fit

Non-Scalable work

Macro-Iterations on:

• product features • messaging • target audience


Qualitative Data

NPS


Quantitative DataRetention

Img credit: Brian Balfour














Users Customers Revenue Gross Margin Profit…

Depends on $$ in bank

Growth Rate of What?








Growth Machine

Not Tactics, but Mindset & Process, ingrained in culture


Growth Machine - Goal

OMTM

Start with the end objective in mind



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


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


Focus here

Double down on what’s already working

Fixing leaks in your AARRR Funnel


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)


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…


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


Focus here

Double down on what’s already working

Fixing leaks in your AARRR Funnel



The Pirate FunnelEcommerceACQUISITION

REFERRAL

REVENUE

RETENTION

ACTIVATION100 add to cart

10 repeat

10 shares

30 purchases

1000 Visitors


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


The Pirate Funnel

ACQUISITION

REFERRAL

REVENUE

RETENTION

ACTIVATION

1000 Visitors cvr = 50%

cvr = 20%

cvr = 10%


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…


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


Thank You

@ammineni #500STRONG

B17 mhw - intro to 500 distro

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