distribution hacking 101 - how to achieve growth
TRANSCRIPT
Distribution [email protected]
Distribution Hacking is…
Data-driven paid advertising
Paid AdvertisingWORKS(When done
methodically)
Paid advertising is the easiest way to acquire new users
Many startups don’t do paid advertising
Let’s fix that
Distribution
HackingFramework
A methodology for measuring, experimenting, and optimizing
user acquisition
The distribution hacking framework is…
CPACost Per Acquisition
Key Metrics
LTVLifetime Value
CPACost Per Acquisition
Our Goal
LTVLifetime Value
<
CPACost Per Acquisition
Our Goal
LTVLifetime Value
<+
Scale
$8 CPA
Example…
$20 LTV
=$12 RPU
Revenue Per User
-
$8 CPA
Example…
$20 LTV
=$12 RPU
Revenue Per User
-
+ Scale
Let’s dive in…
Six Steps
Step 1:
Implement analytics & testing tools
Example…Three step conversion funnel
SignupAdd to Cart Checkout
(Conversion Goal)
Example…
Track each step of the funnel
B20%
A30%
Example…
And split test
When you have data…
You can optimize!
Analytics
Split Testing
Step 2:
Define target customer
Pre vs. PostProduct Market Fit
Pre-PMF
Customer Discovery
Post-PMF
Customer Scaling
Pre vs. PostProduct Market Fit
Whois your
customer?
AgeGenderGeographyIncome
Demographic factors
Marital StatusEducationOccupationInterests
Critical Question:
What is your customer’s persona when they are using
your product?
People have multiple personas
Personal vs. Business
Step 3:
Define conversion goal & funnel
Conversion goal is a single event such that when a user completes it, they are considered
a customer.
Sign upLeadOpt in newsletterSaleSubscription
Examples…
Conversion funnel is the path your customers take to complete the
conversion goal.
Example…
Signup Add to Cart Checkout(Conversion Goal)
10,000 users
40% 20% 5%
500 customers
Step 4:
Hypothesize acquisition channel
Think about demographic
+ persona
Where do customers “hang out” online?
Step 5:
Setup ads & execute experiment
Learn each ad platform that
you want to use
Your budget should be enough to accumulate
statistically significant data
Simple imagesClear value propositionSingle call-to-action
General tips…
Step 6:
Optimize
Potential for success?
YES NOOptimize
Step 4
CTR, Cost
Conversion Rate
What to optimizeAdvertisem
entLanding Page
Copy
Call to Action Image
Ad optimization
Landing page optimizationDesig
nCall to Action
Value Prop
Fields
Step 1: Implement analytics & testing toolsStep 2: Define target customerStep 3: Define conversion goal & funnel--------------------------------------------Step 4: Hypothesize acquisition channelStep 5: Setup ads + execute experimentStep 6: Optimize or return to Step 4
Recap…
THANK [email protected]