nps driven growth or how to grow your startup w
DESCRIPTION
NPS Driven growth or How to grow your startup without spending money on marketing. Slides from the GrowthHackingConferenceTRANSCRIPT
@nilanp
NPS driven growth!OR!
How to grow without spending a TON on marketing!
!
Nilan Peiris!VP Growth TransferWise
@nilanp
Startups
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Startups Tequila
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Helped startups get to traction
Opinion is an outcome of experience
Back to traction
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Revenue
Revenue
Revenue
Death Zone
Revenue
How do I get out of the death zone ?
A typical founder conversation
Anonymised using characters from the
Wire
x
GROWTHDude - we’re running outta cash in 6 months
GROWTH
Lets go see the Man - he can give us funding
Introducing the Man
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GROWTH
GROWTH
Come back when you have traction…
GROWTHWe need to get traction, we need to find customers, you know what we need ?
GROWTHMarketing
GROWTHWord. Marketing is what we need… but marketings expensive. You know what we need ?
GROWTHMoney… lets go see the Man.
GROWTH
How do I get out of the death zone ?
4 principles for NPS driven growth
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1. Supply is your biggest scaling lever!2. Systemically improve your experience for your customers through curating supply!3. Once product is working, focus on building NPS to drive growth!4. Once product is growing add marketing
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Supply is usually your biggest scaling lever
PRINCIPLE 1
Focus on supply or customers first ?!
Chicken Egg
OR
Chicken Egg
OR
I came first
SUPPLY CAME FIRST!
SUPPLY IS THE BIGGEST DRIVER OF YOUR CONVERSION
RATE!
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eDrivers of conversion rate
Availability of product
I WANT A T SHIRT!
Availability of in right size / date
I WANT A MEDIUM T SHIRT!
Availability at price point
ITS GOT TO BE UNDER £30!
MARKETING BULLSHIT (CRO)
1. Availability of product!2. Availability of product on right date / size!3. Availability at right price point!4.Marketing bullshit (CRO)!
Drivers of conversion rate
Start with one market and build from there
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Learn how to systemically acquire supply!
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Understand your value to suppliers!
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Summary!1. Acquiring supply solves the
chicken / egg problem!2. Focus on availability of product
at price point!3. FIgure out how to scalable
acquire supply and get clear over time on your value proposition to suppliers!
4. Focus on growth through systemically improving your supply base @nilanp
PRINCIPLE 2!!
Systemically improve the experience of your customers!
Practical adviceFocus on single
userscredit: Klinger.io
Figure out your supply curation
metrics
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CookIt optimises recipes to keep customers come back for more
Amazon’s!recommendation algorithm curates their supply optimising for conversion rate
HouseTrip’s recommendation algorithm measures quality of stay
Facebook’s news feed optimises for engagement
Uber takes into account driver and passenger quality when you hail a cab
• Prioritise !
1. Systemically improve your customer experience by improving the quality of supply!2. Focus on outcome metrics for your customers!
Summary
Focus on NPS and your business will
grow
PRINCIPLE 3
Would you recommend us to your friends?
1 2 3 4 5 6 7 8 9 10
Detractors Neutral Promoters
Would you recommend us to your friends?
1 2 3 4 5 6 7 8 9 10
Detractors Neutral Promoters
TotalPromoters - Detractors
= NPS
If promoters > detractors you WILL
grow
N.B. This is fucking hard.
It works ! !(But barely)
It works ! !(But barely)
It works with!no significant issues !
It works ! !(But barely)
It works with!no significant issues !
It works. Wow that was slick
It works ! !(But barely)
It works with!no significant issues !
It works. Wow that was slick
You’ve just blown my socks off that was fucking incredible
ONLY focus on NPS once the product is
working
Every app on your phone has an insanely high NPS
What drives recommendation ?
Rational Emotional
Rational! Emotional• Meeting &
exceeding expectations!
• Product features
• Narrative!• Reason for
sharing!!
!
You can’t copy that !
ONLY focus on NPS once the product is
working
Summary!1. Focus on NPS and you will grow!2. Understand the drivers of NPS
and align your product and marketing organisation behind this
!
!
Once product is growing add
marketing
!
!
PRINCIPLE 4
!
!
Once unit economics are strong explore
marketing
!
!
PRINCIPLE 4
1. Performance marketing!
2. Viral growth!3. Inbound marketing!
Money in Money out
1. Performance marketing!
Money in < Money out
Practical advice
When to focus on performance marketing ?
1. If your unit economics are better than anyone else in the industry
2. You can target relevant traffic
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Viral growth!
Viral growth =!Word of Mouth
Referral programs!Crazy social sharing
Referral programs = tracked Word of
Mouth
Focus!!
Give away value!NOT money!
Focus!!
=
What amplifies viral growth rate ?
Frequency of use!Relevance!
Shareability
Practical advicePre-requisites
1. Have a great product 2. Have your first 1000
customers 3. Customers are part of high
trust networks with other target customers
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Inbound marketing
Build acquisition into your app
NPS driven growth!4 principles
1. Supply is your biggest scaling lever!2. Systemically improve your experience for your customers through curating supply!3. Once product is working, focus on building NPS to drive growth!4. Once product is growing add marketing
@nilanp
@nilanp