busting the myth of growth hacking magic

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Growth Hacking Magic? Sean Ellis September 17, 2014 CEO of Qualaroo, GrowthHackers.com Twitter @seanellis Going Beyond the Hype to Take Your Business to the Next Level

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These are Sean Ellis's slides from Hubspot's 2014 Inbound Conference. The slides explain that growth hacking is not about silver bullets, but rather a rigorous process of generating ideas for experiments, prioritizing experiments, testing and analyzing them. The slides highlight key areas of exploration for generating your growth hacking ideas.

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Page 1: Busting the Myth of Growth Hacking Magic

Growth Hacking Magic?

Sean Ellis September 17, 2014

CEO of Qualaroo, GrowthHackers.com

Twitter @seanellis

Going Beyond the Hype to Take Your Business to the Next Level

Page 2: Busting the Myth of Growth Hacking Magic

About Me

• Founder/CEO of Qualaroo & GrowthHackers.com

• Previously VP Marketing from customer zero to NASDAQ IPO filing at LogMeIn and Uproar.com

• Then interim marketing exec roles at Dropbox, Lookout and Eventbrite

Page 3: Busting the Myth of Growth Hacking Magic

@seanellis

Extreme Competition for Attention

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012$0

$20

$40

$60

$80

$100

$120

$140

$160

US Online Ad Spend per User

3.5x

Page 4: Busting the Myth of Growth Hacking Magic

Rapidly Evolving Channels

@seanellis

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 20130

20

40

60

80

100

120

WOM Email

MySpace

Facebook

Craigslist

Twitter

iOS

Android

James Currier

Page 5: Busting the Myth of Growth Hacking Magic

Yet Some Huge Startup Successes

Little or no traditional marketing…

@seanellis

Page 6: Busting the Myth of Growth Hacking Magic

@seanellis

GROWTH HACKING MAGIC?

Page 7: Busting the Myth of Growth Hacking Magic

No – Rigorous Process of Experimentation

@seanellis

Page 8: Busting the Myth of Growth Hacking Magic

@seanellis

The Dropbox Growth Story

• Freemium reduced allowable CPA

• Natural advantages to grow with collaboration and sharing

• Catalyze sharing with double sided referral program

• Optimize conversions on sharing loops

• 300 million users with no traditional marketing

Page 9: Busting the Myth of Growth Hacking Magic

@seanellis

Desperation Drove Startups to Innovate

• Aggressive targets, tight resources

• Traditional approach not realistic

• Had to rethink growth…

Page 10: Busting the Myth of Growth Hacking Magic

The Growth Hacking Playbook

• Experiment with all available growth levers

• Understand what’s driving growth, test to improve it

• Heavy focus on product and optimization

http://www.michiganemploymentlawadvisor.com/

Page 11: Busting the Myth of Growth Hacking Magic

@seanellis

B2B or B2C?

• Growth hacking isn’t just for consumer-focused companies.

• B2B often requires integration with sales process.

Page 12: Busting the Myth of Growth Hacking Magic

@seanellis

HubSpot’s Growth Hack – Free Tools

Page 13: Busting the Myth of Growth Hacking Magic

@seanellis

Yammer – Engineered User-Get-User

Page 14: Busting the Myth of Growth Hacking Magic

@seanellis

LinkedIn - Engineered User-Get-User

Page 15: Busting the Myth of Growth Hacking Magic

PUTTING GROWTH HACKING TO WORK FOR YOUR BUSINESS

@seanellis

Page 16: Busting the Myth of Growth Hacking Magic

Finding Your Own Growth Hacks

@seanellis

• Areas of exploration

• Process, team and tools

Page 17: Busting the Myth of Growth Hacking Magic

Some Areas of Exploration

• Platform integrations

• Engineered user-get-user

• Free tools

Examples

25+ M users

@seanellis

Page 18: Busting the Myth of Growth Hacking Magic

Areas of Exploration (Cont)

• Powered by

• Reverse engineer success

Examples

@seanellis

Page 19: Busting the Myth of Growth Hacking Magic

Success Data: Airbnb’s Pro Photos

• Airbnb discovered that listings with high-quality photos received 2-3x bookings

• Airbnb invested in professional photography

• Booking activity explodes as desire increases

@seanellis

Page 20: Busting the Myth of Growth Hacking Magic

@seanellis

Other Growth Studies for Inspiration

Page 21: Busting the Myth of Growth Hacking Magic

@seanellis

Experimentation is Key to Success

• Generate many ideas for experiments

• Prioritize by impact, confidence & effort

• Balance high impact & high probability tests

Page 22: Busting the Myth of Growth Hacking Magic

GOAL: INCREASED UNITS OF GRATIFICATION

Page 23: Busting the Myth of Growth Hacking Magic

Double Down on Success

• Challenge is not finding many channels that work, but rather finding one.

• Often your best growth opportunity is to double down on what’s already working.

Page 24: Busting the Myth of Growth Hacking Magic

@seanellis

Growth Team Often Needed

• Multi-disciplinary

• Cross functional

• Evangelize experimentation culture

“Growth team” complements existing marketing team

Page 25: Busting the Myth of Growth Hacking Magic

@seanellis

Some Helpful Tools

• Analytics — Identify drop-off points and under-performing pages (e.g. Google Analytics, KISSMetrics)

• Qualitative Insights — Uncover the why behind the numbers (e.g. Qualaroo, SurveyMonkey)

• A/B Test — Find better performing combinations to drive conversion rate (e.g. Hubspot, Optimizely)

Page 26: Busting the Myth of Growth Hacking Magic

Relentless Execution of Growth Process

@seanellis

Page 27: Busting the Myth of Growth Hacking Magic

@seanellis

Key Takeaways

• Emerging marketing challenges require all to rethink growth

• Growth hacking is based experimentation, not silver bullets

• Add process/team to maximize number of experiments

• Get inspiration from data, VOC and what’s working for others

Page 28: Busting the Myth of Growth Hacking Magic

Questions?

THANK YOU.

Sean EllisCEO of Qualaroo

& GrowthHackers.com

Twitter: @seanellis