product school: growth explained by facebook's core product manager
TRANSCRIPT
GROWTH
Yaron Fidler | Product School | Feb 2017
Jake StrichCampus Director
Contact me for more info about PS courses!
Mondays and WednesdaysFebruary 27 - April 19*1 spot left* Tuesdays and ThursdaysFebruary 28 - April 20 *SOLD OUT*
SaturdaysMarch 4 - April 22*1 spot left*
Upcoming Courses in Silicon Valley
GROWTH
Yaron Fidler | Product School | Feb 2017
Introduction• Yaron Fidler• Product manager @ FB • Worked on Growth for the past year
and a half• Currently PM in ads (my new gig)• Previously at ebay (Structured data,
SEO) • Soccer Junky• Can train your dog
Agenda1. Why Growth2. Growth Metrics3. Growth Accounting 4. Growth products / tactics 5. Discussion
Agenda1. Why Growth2. Growth Metrics3. Growth Accounting 4. Growth products / tactics5. Discussion
Why Growth?
Why do organizations have dedicated efforts around Growth?
Why Growth?• Growth answers a fundamental question about a
product: Is there a product market fit?• It’s hard to drive revenue with product – market fit
but you can have product market fit without revenue or without profit (Uber)
• Growth is up = Your product creates repeating value for its users, so users keep coming back
Agenda1. Why Growth2. Growth Metrics3. Growth Accounting 4. Growth products / tactics5. Discussion
Growth Metric• Your growth metric should reflect the product
market fit • It should also imply about future financial results
How can you identify an organization’s growth metric?
Growth Metric
“We added 7.05 million net new members globally in the quarter, against our forecast of 5.20 million
and last year's Q4 performance of 5.59 million. This was the largest quarter of net additions in our
history and was driven by strong acquisition trends in both our US and International segments. “
Growth Metric – ExamplesOrganization
Monthly / Daily active users
GMV - Gross merchandise value
Payments volume
Metric
Units sold Two
Sided
Market
s
Agenda1. Why Growth2. Growth Metrics3. Growth Accounting 4. Growth products / tactics5. Discussion
Growth Accounting - Users• Active users – a user that used the product
over a certain time period (e.g. last month)
How does the number of active users grow?How does the number of active users shrink?
Growth Accounting - FormulaActive users today = New Users + Resurrected users – Churned users
• New Users – users that joined today• Churned users – users that their last day using the product
was exactly X+1 days ago (X = growth period)• Resurrected users – users that didn’t use the product in the X
days and are using it today
Growth Accounting - Example• Yesterday we had 100 monthly active users• Today 10 more registered • 3 users used the product for the last time 31 days
ago • 1 user that didn’t use the product for over 30 days
used it today • Monthly active users today = ?
Growth Accounting - Retention• Retention isn’t part of the accounting formula
but it is critical for growth and to understand product market fit!
• Whiteboard…
Agenda1. Why Growth2. Growth Metrics3. Growth Accounting 4. Growth products / tactics 5. Discussion
Growth Funnel
Discovery / Top of the funnel
Conversion
Retention
Resurrection
Growth Products / Tactics – Discovery
• SEO• Paid traffic • Invites• Partnerships • Playstore / Appstore optimization
Tactics that aim to bring users on
your product
Growth Products / Tactics – Conversion
• Requires deep conversion funnel understanding• Site / Load speed• Forms layout• Button colors • Value proposition• Flow simplification • Mostly about removing friction!
Tactics that aim to convert
non active users to
active once landed on
your product
Growth Products / Tactics – Retention
• Requires deep understanding of your retention drivers
• Users will stay active if they find value • These products aim to increase the sense of
value you are producing • Off platform Notifications (email, SMS, push)• Contact point acquisition• New user experience
Tactics that aim to keep active users active
A word about dataGROWTH PRODUCTS MUST BE DATA DRIVEN! • You must be able to answer questions like: – Where are my non users spending their time? – Why do people fail to convert ?– Who are the people that retain / churn? – Etc…
• Then start segmenting (country, network, age, platform, language, traffic source…)
Recommended Video• Alex Schultz (VP Growth & Analytics at FB) on
Growth• Part of “How to start a startup” series• Video Link: http
://startupclass.samaltman.com/courses/lec06/ • Or search on google: How to start a startup Alex
Schultz
Agenda1. Why Growth2. Growth Metrics3. Growth Accounting 4. Growth products / tactics 5. Discussion
Short Exercise (5 minutes) • Introduce yourself to the person next to you• Choose a company (can be yours) • Answer these questions: – What is the company’s Growth Metric (or what you
think it should be)?– What growth tactics it is using? – What data does it need?
Jake StrichCampus Director
Contact me for more info about PS courses!
Mondays and WednesdaysFebruary 27 - April 19*1 spot left* Tuesdays and ThursdaysFebruary 28 - April 20 *SOLD OUT*
SaturdaysMarch 4 - April 22*1 spot left*
Upcoming Courses in Silicon Valley
Fred Radford
Director of Product at 8x8
5-time Product School Instructor
Feb 27 - April 19Monday & Wednesday 6:30-9pm
*1 spot left*
Upcoming Course Instructors
Inbal Cohen
Product Manager @ FacebookPreviously Sr. PM @ Amazon
Feb 28 - April 20Tuesday & Thursday 6:30-9pm
*sold out*
Upcoming Course Instructors
Jamal Eason
Product Manager @ GooglePreviously PM @ Intel
March 4 - April 22Saturdays9:30am-3:30pm (12-1 lunch)
*1 spot left*
Upcoming Course Instructors
Feb 15: Ask Me Anything with Product School’s Lead Instructor
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