Rating: 8.5/10Author: Sean Ellis/Morgan Brown Read More on Amazon
Wonder how companies like Snapchat, Pinterest, Uber, Stripe, and Instagram became billion-dollar companies in less than a decade? The answer is "Growth Hacking" and in the book, Ellis walks you through step by step how you can apply these techniques to your business or company. Growing a company this fast was unheard before the age of the internet, it usually took generations for companies to become well-established powerhouses but now almost any individual can do it. If you're looking to take your product and customer base to the next level this is a must-read.
Hacking Growth Summary
- Engineers, data scientists, and marketers all have to work together to make exponential growth happen.
- A ton of tests and data analysis to see whats working and whats not.
- Uproar beat behemoths such as Sony by embedding free playable widgets on websites.
- Youtube did the same thing.
- Paid ads were too expensive, LinkedIn and paypal examples: "growth was achieved not with traditional advertising, but rather with a dash of programming smarts and on a shoestring budget".
- Building marketing into the programs themselves
- Dropbox referral program for more storage, paypal $10 referral program
- growth hacking allows companies to efficiently marry powerful data nalysis and technical know-how with marketing savy, to quickly devise more promising ways to fuel growth.
Part 1: The Method
- BitTorrent making the most out of the customers they had
- Pg 38 "All growth leads require a basic set of skills: fluency in data analysis; expertise or fluency in product management (meaning the process of developing and launching a product) and an understanding of how to design and run experiments. → Usually the founder
- A good product product manager is the CEO of the product
- Cycle growth teams should use:
- data analysis and insight gathering
- idea generation
- experiment prioritzation
- running the experiments and then circles back to the analyze step to review results and decide the next steps.
- Mark Zuck growth > revenue
Ch 2 Determining if your product is a must have
- Airbnb growth team "love creates growth, not the other way around"
- Branchout exploded with growth but there product was trash, so they lost all there users.
- Yelp pivot from asking friends for recommendations to review platform
- Can you identify an aha moment users love? If u can ur ready to push for growth
- The must have survey
- Measure retention on how they use app on a weekly or daily basis, average mobile apps retain 10% of users with good ones retaining over 60%
- Tinder focused on a small group or sorities and fraternities and bcz of this blew up
- Etsy focused on a small group of sellers and they shared and blew up
- click is a poor indicatior bcz customer might just be enticed by the headline and not be a lasting customer
- New User Experience critical to success (NUX)
Ch 3 Identifying your growth levers
- average freemium conversion rate = 1%
- everpix kept adding features instead of focussing on subscribing user numbers → dont focus on just growth but on the right levers of growth
- Creating an aha moment and driving more ppl to it is the starting point for hacking growth, next step is to determine ur growth strategy
- The north star metric, airbnb = nights booked, ebay number of items listed, whatsapp = number of messages sent
- Rob Sobers dating tracking/analyzing step list
- constant visibility to the numbers posi
Ch 4 Testing at High Tempo
- Learning more by learning faster is the goal of growth hacking
- a 5% increase in retention leads to an increase in profits of between 25 and 95%, over a year this is compounded retention percent is 80%, which halves the cost of acquiring each customer.
- Maximize the # of experiments run each week
Ch 5 Hacking Acquisition
- language market fit = how well the way you describe the benefits of your product resonates with your target audience.
- channel/product fit = how effective the marketing channels are that you've selected.
- How is the thing your showing me gonna improve my life?
- Upworthy creates 25 different possible headlines which then get filtered. A/B test
- Ranking channels by these 6 channels: Cost, Targeting, Control, Input time, Output time, and scale
- Hubspot offering free tools such as a website grader
- building a community, or being the first one to build a hot new product like snapchat
- acquistion, to activation and then on to retention.
- virality of any product is controlled by 3 factors: payload, conversion rate and frequency.
- Virality = payload x conversion rate x frequency
- payload = # of people to whom each user will likely send the promotion to.
- frequency the number of times your doing this
- optimize these three variables to create a viral loop
- Learning how your customers use your product and where potential and where potential loops can be created and optimized, will save you a lot of bad trials.
- product/incentive fit
CH 6 Hacking Activation
- mobile apps lose 80% of their users within three days.
- Remove friction, desire - friction = conversion rate, eliminating friction is low hanging fruit.
- New User Experience must: communicate relevance, show the value of the porduct and provide a clear call to action.
- Not all friction is bad, for example getting people to take little commitments in a game will get them hooked.
- Questionaires, in the NUX is good, "asking customers about their inteerests or about the porblems they are seeking solutions for immediately creates a form of commitment"
- Gamification should be thought of as a toolkit of options to choose from rather, rather than a predefined set of tactics that work for all businesses.
- Triggers to try out follow these rules :
- Commitment and consistency
- Social proof
Ch 7 Hacking Retention
- High acquisition costs and low retention leads to rapid demise.
- The longer users stay with your product, the more opportunities they;ll have to talk about it and show it to their friends.
- One to may to one-one
- Long term retention - 1) optimizing the current set of product features, notifications, and subsequent rewards from repeated use; 2) Introducting a steady stream of new features over a long period of time.
Ch 8 Hacking Monetization
- Jaccard similarity coefficient - determines how similar two products are
- Getting a personalization wrong can dramatically hurt revenue
- MIT study with web only, print edition and web-print edition where because of the middle addition people were able to compare the value of the wep-print edition and chose that option 84% compared to 16% when the middle option was not present.
- Adding picture of person (friend) to referral saw a 300% increase per day in sign ups and nights book from friend referrals to Airbnb.
Ch 9 A Virtuous Growth Cycle
- Breakout companies that sustain their success are those who constantly push for more.
- Double down on whats working
- They become complacent, look what happened to skype
- Mine deeper for data gold