How to Build a Growth Machine at TheNextWeb San Paulo Brazil

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@Thenextweb Conference

Dec 2nd, San paulo, Brazil

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The Growth Master

• Founder, CEO of DoRevolution and Growth

Mentor at 500Startups Silicon Valley,

Optimized $1B+ in Ads.

• Founder of SearchForce and pioneer to apply

Wall Street Analytics and Quantitative Trading

Techniques to Advertising for Portfolio

Optimization. Raised $10M+ in financing,

developed a Cross-Channel Optimization SaaS

Platform Based and took the company to

profitability.

• MBA in Brand Marketing from Cornell's Johnson

School of Business.

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DoRevolution Growth Services

• Growth Marketing & Analytics

– Google Adwords

– Facebook Ads

– Mobile Advertising

– Retargeting

– SEO : On-page & Off-page

– Analytics: Google Analytics, Mixpanel,

Kissmetrics

• Growth Training Seminars for CEO’s, CMO’s

and Staff

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Moneyball for Growth

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How to Build a Growth Engine

• Scalable

• Repeatabl

e

• Predictab

le

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BOTS Take Over Social Selling

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Automate Visits to Profiles

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Profile Current & Clear Action

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Be Vanilla or a Gorilla

International Ice Cream Association the Top 10 flavours of ice cream in order are: vanilla,

chocolate, butter pecan, strawberry, neapolitan, chocolate chip, french vanilla and cookies ‘n’ cream.

Vanilla (#1) got approximately 28% of sales and chocolate (#2) got approximately 8% of sales.

The rest got 6% or less.

In this instance, being #1 makes you 350% better off than #2.


Dave McClure Startup

Ecosystem

12

• 1,000 Bootstrap Startups ($0-10K)

• = 1,000 Parents/Garages/Basements @ $0-500/mo food+rent

• 300 Accelerator Startups ($10-100K)

• = 10-20 Accelerators @ $1-5M/yr, 20-50 co’s/yr

• 100 Seed-Stage Startups ($100K-$1M)

• = 5-10 Micro-VC Funds @ $10-30M/yr, 10-20 co’s/yr

• 30 Series A/B Startups ($1-10M)

• = 3-5 Early-Stage Funds @ $25-100M/yr, 5-10 co’s/yr

• 10 Later-Stage Companies ($10-100M)

• = 2-3 Later-Stage Funds @ $50-250M/yr, 3-5 co’s/yr

• 1-3 Mature Company IPOs ($100M+)


- McKinsey & Company




Growth Trumps all Metrics

15

• High growth companies return 5X more to

share holders

• Growth predicts long-term success

• SuperGrowers (growth rate >60%) when

reached $100M were 8X more likely to

reach $1B than ones <20% growth rate

• Growth matters more than margin or cost

structure. Increases in revenue growth rates

drive 2X as much market cap gains



Action

Grow Fast

or

Die Slow


But Growth is Hard

• Law of Vanilla Ice-cream

• Rapid Evolution of Platforms

• Increasing precision brings

complexity

• Speed & Machines

• Lots of Money at Stake


Platforms 2.0Search, Social, Mobile,

Video, Messaging

$100M+ Users

~ Dave McClure


A Zillion Ways to Acquire Users


Hyper Inflation & Irrational

Bidders


Efficient Markets


Easy to Lose Money

It’s Complex.

Know if you don’t know.


SEO is not JUST SEO

~ Rand Fishkin, Wizard, Moz


Unprecedented Complexity


Action

Reflect on your current

knowledge and feel the gap


Precision Marketing


Action : A Historical Opportunity

Laser-Like

Precision Marketing


The Rise of the Machines


High-frequency trading factoids


High-frequency trading factoids




Hedge fund Spent

$300M to increase speed by

3 Milliseconds


Billions at Stake



Google Pays $500M for AI




Self-Aware Robots


Elon Going to Mars



You vs. (Machines +

Geniuses)

Do you have

DataStarson your team?


Actions• Grow Fast or Die Slow

• Markets are hyper-competitive and inflated

• Companies are using Artificial Intelligence,

Math and Stats to gain competitive

advantage

• Companies are hiring the best and brightest

minds and paying billions for them. It’s the

TEAM stupid.

• Easy to spend money, hard to make money

• Bottom-line : Pay attention OR you will end

up in the dead pool.





People

• Key

Qualities

• Quant

Skills


9 Qualities of World Class Growth

Teams• Possess Action-Driven Thinking

• Rapid Learners of Dynamically Changing

Marketing Channels and Growth Platforms

• Understand Growth Process

• Are Highly Product-Savvy

• Have a Hustle Mindset

• Possess a Cross-Disciplinary Skillset

• Connect Marketing to Product Development

• Possess Technical Acumen

• Hiring connections




Platforms

• Data Use / Action Ninjas /

GrowthStack


Data Storage & Retrieval


How Big is your Data?

52twitter @meetsamirStop Data

PUKING

53twitter @meetsamirTraffic Acquisition

Market Research & User Feedback

Email Marketing

Competitive Research Tools Sales Intelligence

Lead & Customer Acquisition

AB / Multivariate Testing




Your Eyes are ‘Analytics’


Website.com

Emails &

widgets

Campaigns,

Contests

Biz DevAds, Lead Gen,

Subscriptions, etc

Homepage /

Landing Page

Product

Features

1. ACQUISITION

SEOSEM

Apps &

Widgets

Affiliates

Email

PR Biz

Dev

Campaigns,

Contests

Direct, Tel,

TV

Social

NetworksBlogs

Domains

Emails &

Alerts

Blogs,

Content

System Events &

Time-based Features

~ Dave McClure


Process

•KPI’s

• Growthaly

tics

• Kaizen




~ Brian Balfour


Action

Establish Clear, Quantifiable

Goals.

Think Attribution Modeling.


Customer Lifecycle

• Acquisition: users come to the site from various channels

• Activation: users enjoy 1st visit: "happy" user experience

• Retention: users come back, visit site multiple times

• Referral: users like product enough to refer others

• Revenue: users conduct some monetization behaviorAARRR!

~ Dave McClure, 500Startups


Action

Think

Lifecycle.

Customer

Journeys.

65twitter @meetsamirGrowth Experiments

Framework


Experiment

• Objective

• Hypothesis

• Design

• Resource Estimation

• Results

• Findings

• Action Items



Action

You must Breathe

Continuous Improvement

69twitter @meetsamirEstablish Objectives and Key

Results (OKRs)

• Set your objective based on what’s going to

have the greatest impact on your business

right away

• Establish a timeline for testing

• Set multiple Key Results (KRs) based on

level of difficulty:

KR 1 – 90% chance of success. You did a good job.

KR 2 – 50% chance of success. You did a great job.

KR 3 – 10% chance of success. You hit it out of the park!


Example -- Growth via Adwords:

Target : Lower their CPA for accredited investor signups via AdWords without a significant drop in conversion volume.

1. Focus on Search Network to drive lower CPA

2. Set timeline for 60 days

3. Three Key Results will be attempted:

• KR1 -- (90% change of success): Raise conversion volume by 10% by focusing on strategic bid modifications RLSA audience lists.

• KR2 – (50% chance of success): Lower CPA by 20% by limiting the keywords they buy to high performing terms only, and setting location bid modifications by income-tier.

• KR3 – (10% chance of success): Lower CPA by 20% and raise conversion volume by 10% by combining these two strategies.


Action

Run Growth

Teams on

OKR’S.



It’s the Questions that drive

Change

1. Do you have millisecond strategy?

2. Have you identified a Growth Team?

3. Do you run Growth as Risk & Portfolio Management?


Samir [email protected]

President & CEO,

DoRevolution

Growth Mentor

@500Startups

Connect on Linkedin

Twitter@MeetSamir

mailto:http://www.linkedin.com/in/growthmaster

How to Build a Growth Machine at TheNextWeb San Paulo Brazil

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