george revutsky

ROAARRR:Theframeworkweusedtogrow

Soothe600+%in1yearandraise$45.6MM

GeorgeRevutsky,ex-CMO,HeadofGrowth@SootheCEO,[email protected]

600% Monthly Revenue Growth

Highlights: ü  12 months’ double-digit revenue growth, e.g. 20-30% in Q4 2015

ü  The largest on-demand massage service, now in 50 cities and 3 countries. Three yrs. old.

ü  100+ Local and National Placements in Publications and TV Shows, including Ellen, USA Today, Bloomberg, GQ, Men’s Health and Techcrunch.

ü  Grew revenue at 3x the rate of Zeel, former #1 and first mover in the space. Funding: -  $10.6 MM Series A -  $ 35 MM Series B (~8 months after Series A)

What is Growth Marketing? A process …. of research, prioritization, and rapid experimentation ….. across marketing channels, product development, and messaging …. to identify the most effective and efficient ways to grow a business.

Growth largely a function of: - prioritization and focus - quality of hypotheses - test velocity - process

ROAARRR: A Simple Growth Framework

ResearchOpUmizaUonAcquisiUonAcUvaUonRetenUonRevenueReferral

-NamedaYermy7yearold,obsessedwithLionKing-BuildingonDaveMcClure’s“AARRR”PirateMetrics

Get on the Same Page Before You Grow

1)  Principles 2)  Process 3)  Team 4)  Tactics

Principles We Used:

•  Growth is Measured Day over Day, Week over Week •  Optimize for Maximum Impact •  Rapid Beats Perfect •  Growth Is Never Done

TheGrowthDashboard:DaybyDay,WeekbyWeek*dummydata

**Tracksrevenuegrowthbydayvs.samedaylastweek.

Research: WHERE is the opportunity?

•  AnalyUcsinstrumentaUonandFunnelBaselines–  Pladormsapp,web,phone,store)–  Devices–  NewvsReturningUserFunnels–  FunnelsByGeography–  DayparUngTimeofDay–  FormAnalyUcs–  PageSpeedbaseline

Research: WHERE do I test next?

Research: WHY are they dropping off?

•  ModeratedUserTesUng–  BegerthanusertesUng.com

•  CustomerDevelopment–  JustdoitFFS…

•  Polls–  Hotjar,Qualaroo

Optimization: Hypothesize & PRIORITIZE Tests

•  CreateanExperimentMatrix(rankedbywhatwouldmakeyouthemostmoney/impactwiththeleasteffort)

•  AvoidtesUngwithoutastronghypotheses.

•  WhentesUngtopoffunnel,startwithmajorsimultaneouschanges,thennarrowinfuturetests.

Acquisition – we said NO to most things

•  Unpaid Social media marketing (until after Series B) •  Blogging (until 2.5 yrs after start of co.) •  Content Marketing •  Outdoor, Radio, Cable, Print •  Airline Magazines •  Board members (occasionally). •  Our CEO (rarely) •  Our friends selling us $^%t. •  Friends of friends selling us $^%t.

Research: WHO are we targeting?

1) Goal: Find the LTV, CTR, and CVR by age, gender, + insights into urban vs. suburban, HHI, etc. 2) Used: •  Google Display Network •  FB Audience Insights •  Google Analytics •  Customer database

3) Build Personas

Acquisition: Digital

•  Adwords-theyalreadywantwhatyouareselling.

•  Facebook-Lookalikes.Findyourbestcustomers.TellFacebooktofindmorelikethem.

•  Re-EngagementAds-MarkettoexisUngcustomersagain.

•  RemarkeUng-useGDN,Facebook.MarkettothosethatdidNOTconvert.GARemarkingLists-cando“drip”withcreaUve

•  Twiger,Yelp.

Acquisition: Earned Media •  NaUonalPR

•  LocalPR-launches–  Haveaplaybook–  CoordinateUghtlywithsupplyifyouareamarketplace

•  Financial/TechPR(usefulforraising,posiUoning)

•  1NaUonalPRfirm+1LocalPRConsultant.

Activation

•  Did formal moderated user testing + guerilla testing in airports while traveling.

•  Sample app. testing insight: TOO MUCH FLESH in the app at first glance for some female customers.

•  Result: raised the download-to-register rate from 6% to 20% with our first before-after test app test.

Retention •  Via email, re-engagement ads.

•  Manually sent all email via Mailchimp for 6 month, shifted to Autopilot and more automation, triggers.

•  Segmentation of lists based on RFM (recency, frequency, monetary value)

•  Testing: Time of Day, Day of Week, Promotion Amount, Subject, Copy, Imagery

Revenue & Referral •  REVENUE

–  PricetesUng,esp.incertainciUes-e.gNewYork

•  REFERRAL–  Incented,unincentedreferralloops.–  Testthemall:

•  aYerregistraUon.•  aYerpurchase.•  Post-servicedelivery,aYerhighreview

Good hypotheses leverage both quant and qual research.

You can either do the research to form a good hypothesis, or you

can throw $*%t at the wall.

Most companies just throw $*%t at the wall and waste

their testing time and traffic.

[email protected]

Note:TheROAARRRframeworkisbuildontopofDaveMcClure’sAARRRPirateMetrics,andnamedaYermy7yearoldwho’sobsessedwithLionKing

Qualities You Want in Growth Team Members:

•  Scrappy-figureoutquickanddirtywaystotesthypotheses.•  “Pi-Shaped”–has1-2areastheyaredeepin,andbroadexposuretoallfacetsofgrowth/product/digitalmarkeUng.

•  DataDriven•  Learnsnewstufffast•  Aggressive/compeUUvewhenitcomestohiungnumbers

Referral

RevenuePricing,PromoUonsMerchandising

Reten-onEmail+Re-Engagement

Ac-va-onNewUserExperience(NUX)

Acquisi-onPaid(PPC),Owned(SEO)andEarnedMedia(PR)

A/BTes-ngCopyTesUngSite/AppPerformanceDesign

ResearchUXResearchAnalyUcsCustomerDevelopment

george revutsky

Small Business & Entrepreneurship