startup #7 : how to get customers
TRANSCRIPT
How to get customers
1. Such a long journey
Most startups don't fail because they can't build a product.
Most startups fail because they can't get traction.
Gabriel Weinberg & Justin Mares
The goal
Traction ?
Quantitative evidence of market demand.Naval Ravikant
Purchase funnel ?
The purchase funnel, or purchasing funnel, is a consumer focused marketing model which illustrates the theoretical customer journey towards the purchase of a product or service.en.wikipedia.org
The old customer journey
Source : http://www.tcs.com/resources/white_papers/Pages/Unified-View-Customer-Experience.aspx
The New Customer Journey
Source : http://www.tcs.com/resources/white_papers/Pages/Unified-View-Customer-Experience.aspx
The AARRR framework by Dave McClure
Acquisition
Activation
Retention
Referral
Revenue
How to implement AARRR Metrics?
2. Acquisition
2.1 Methodology
Acquisition ?
Acquisition is the first contact point with a customer and your product or website.http://blog.trak.io
Drive traffic to your site.
The goal
CAC < LTV
The rule
CAC ?
Customer Acquisition Cost is the cost associated in convincing a customer to buy a product/service. This cost is incurred by the organization to convince a potential customer.https://en.wikipedia.org
LTV ?
In marketing, user lifetime value (LTV) is a prediction of the net profit attributed to the entire future relationship with a customer.https://en.wikipedia.org
Channels ?
A company can deliver its value proposition to its targeted customers through different channels. Effective channels will distribute a company’s value proposition in ways that are fast, efficient and cost effective.https://en.wikipedia.org
What is the best channel for your
startup ?
The question
The Bullseye Framework by Gabriel Weinberg & Justin Mares
Brainstorm
Rank
Prioritize
Test
Focusing
2.2 Channels
2.2.2 Search Engine Marketing
What ?
Search engine marketing (SEM) is a form of Internet marketing that involves the promotion of websites by increasing their visibility in search engine results pages through advertising.en.wikipedia.org
Example
Terminology (1)
The click-through rate (CTR) is the number of times a click is made on the advertisement divided by the total impressions en.wikipedia.org
For example, if you received 7 clicks out of 1000 ad views, your ad CTR would be .7%support.google.com
Terminology (2)
Pay per click (PPC), also called cost per click, is an internet advertising model used to direct traffic to websites, in which advertisers pay the publisher when the ad is clicked.en.wikipedia.org
Terminology (3)
Cost per acquisition (CPA) is a measure of the costs associated with acquiring a new customer. en.wikipedia.org
For example, if one spends 100€ on a campaign and gets 10 “acquisitions” this would give a cost per acquisition of 10€.en.wikipedia.org
Long-tail
Source : http://www.smallbusinessonlinecoach.com/blog/tips/why-long-tail-search-engine-optimization-is-essential-to-small-business-seo-success/
Tools
2.2.3 Social & Display Ads
Display advertising ?
Display advertising is a type of advertising that is located on websites. It can be seen in a wide range of different formats and contains items such as texts, images, flash, video and audio.en.wikipedia.org
Display advertising : example
Display advertising : Tools
Social advertising ?
Social advertising is advertising that relies on social information or networks in generating, targeting, and delivering marketing communications.
en.wikipedia.org
Social advertising : example
Social advertising : networks
2.2.4 Search Engine Optimization
What ?
Search engine optimization (SEO) is the process of affecting the visibility of a website or a web page in a search engine's unpaid results - often referred to as "natural," "organic," or "earned" results.en.wikipedia.org
Fat-head VS
Long-Tail
Tactics
Niche content
Automation
Link building
Tools
Black Hat SEO
2.2.5 Content marketing
What ?
Content marketing is a strategic marketing approach focused on creating and distributing valuable, relevant, and consistent content to attract and retain a clearly-defined audience — and, ultimately, to drive profitable customer action.http://contentmarketinginstitute.com
The content marketing model
Create
Promote
Convert
What content ?
Blogs
Videos
User-generated content
Curation and Crowd-Sourcing
2.2.6 Email marketing
What ?
Email marketing is directly marketing a commercial message to a group of people using email. In its broadest sense, every email sent to a potential or current customer could be considered email marketing.https://en.wikipedia.org
Types of emails
TransactionalTransactional emails are usually triggered based on a customer’s action with a company.
NewsletterDirect email or interruption based marketing involves sending an email solely to communicate a promotional message.
Spam ?
Source : Return Path
1995: 95% of email = legitimate 2015: 70% of email = spam
Deliverability (1)
Email deliverability measures the ability to deliver email messages in recipients’ inboxes for email marketing campaigns and to avoid messages being lost, blocked or driven to the spam folder.http://digitalmarketing-glossary.com
Deliverability (2)
Example : Mailjet
How to Find Emails Quickly ?
Ask nicely
Scrapers
Buy listX
Tools
2.2.7 Influencer marketing
What ?
Influencer marketing, is a form of marketing that has emerged from a variety of recent practices and studies, in which focus is placed on specific key individuals rather than the target market as a whole. It identifies the individuals that have influence over potential buyers, and orients marketing activities around these influencers.https://en.wikipedia.org
How to find social influencers ?
http://traackr.com
https://followerwonk.com
https://klout.com
Examples
Betty Autier Tim Feriss Manuel Dorne
How to engage with influencers ?
VIP Access
Sponsoring
Link-sharing communitiesY
2.2.8 Affiliate marketing
What ?
Affiliate marketing is a type of performance-based marketing in which a business rewards one or more affiliates for each visitor or customer brought by the affiliate's own marketing efforts.https://en.wikipedia.org
Affiliate programs
Retail
Information product
Lead generation
2.2.9 Existing Platforms
What ?
Existing platforms are websites, apps or networks with huge numbers of users that you can potentially leverage to get traction.Gabriel Weinberg & Justin Mares
Strategies
Build-early
Multiple app
Newer platforms
Examples
Social platforms
App stores
Marketplaces
2.2.10 Community building
What ?
Community building is a field of practices directed toward the creation or enhancement of community among individuals within a regional area or with a common interest.https://en.wikipedia.org
The Trust Framework by BlaBlaCar (1)
D.R.E.A.M.S.Source : http://www.betrustman.com
The Trust Framework by BlaBlaCar (2)
DECLARED RATED ENGAGED
ACTIVITY MODERATED SOCIAL
Lisa M 26 y.o.
D.R.E.A.M.S. The Trust Framework by(
Source : http://www.betrustman.com
Examples
Evangelists
Events
Mission driven
Public & personal interest
3. Customer Activation
Activation ?
Activation is when visitors do what you’ve decided beforehand they should do, when they take an action which furthers your goals.Oussama Ammar
Examples
Get their email address
Get them to create an account
Get them to read something
Get them to comment on something
Get them to share something
Get them to buy something
Get them to fill out something
Get them to watch something
Get them to interact with someoneOussama Ammar
Aha! moment
Growth teams have learned to identify leading indicators of whether a user will turn into an engaged user later on – often known as the “Aha! moment”. It’s called this because this is the moment a user gets what your product is really about and why it’s valuable to them.http://www.growhack.com
Examples
Follow 30 other people
Reaching 7 friends in 10 days
Day 1 retention
Put at least one file in one Dropbox folder
3.1 Coming soon page
Before launch ?
The best thing to do is create a simple “Coming soon” page to notify visitors of what will eventually be there. Good “Coming soon” pages come in two basic varieties: the informational design, which simply tells visitors what will be there after launch; and the page that invites early visitors to sign up for updates or even to request a beta invitation.http://www.smashingmagazine.com
Tools
3.2 Homepage VS Landing page
Homepage ?
A home page or index page is the initial or main web page of a website.en.wikipedia.org
Homepage ?
Example : Dropbox
Landing page ?
In online marketing, a landing page is a single web page that appears in response to clicking on a search engine optimized search result or an online advertisement. The landing page will usually display directed sales copy that is a logical extension of the advertisement, search result or link.en.wikipedia.org
Landing page ?
Example : Dropbox
Squeeze page ?
A squeeze page is a single web page with the sole purpose of capturing information for follow-up marketing; that means NO exit hyperlinks. Quality squeeze pages use success stories that the prospect would relate to when making a buying decision.en.wikipedia.org
Squeeze page ?
Example : Uber
Call to action ?
In web design, a Call to action (CTA) is a banner, button, or some type of graphic or text on a website meant to prompt a user to click it and continue down a conversion funnel.en.wikipedia.org
Tools for Building Landing Pages
Tools for landing page optimization
3.2.1 How to Make Great Landing Pages
Fewer choices, more conversions.
Example : https://www.hoteltonight.com
Inspiration
http://lapa.ninja
http://land-book.com
https://www.instapage.com/2015/02/17/landing-page-trends-in-2015/
http://www.pixelatingbits.com/10-amazing-landing-page-designs-for-inspiration/
3.3 Onboarding
Onboarding ?
The experience a customer has when they become oriented to a product or service.Henken Bean
« When you get it right, what happens is the boundary
between trying out a product and using it disappears. »
Ben Chow
Onboarding phases
Decide - Purchase or commit
Get - Self-install or pro-install
Start - First time use
Use - Ongoing use
Source : http://fr.slideshare.net/henkenbean/principles-of-onboarding
Manufacturing desire
But how do companies create the internal triggers needed to form habits?
The answer: they manufacture desire.
Startups manufacture desire by guiding users through a series of experiences designed to create habits. I call these experiences “desire engines,” and the more often users run through them, the more likely they are to self-trigger.Nir Eyal
3.3.1 Best practices for user onboarding
Front load your user experience
Example : Quora
Simplify login : Social login
Example : Quora
Simplify login : Embedded form
Example : Slack
Tutorial
Example : Pinterest
Scaffolding
Example : OkCupid
Show by example.
Example : Snapchat
Clear path
Example : Periscope
Make it hard to do wrong (1)
Example : https://www.useronboard.com/how-twitter-onboards-new-users/
Make it hard to do wrong (2)
Example : http://uxarchive.com/tasks/creating
Inspiration
https://www.useronboard.com/onboarding-teardowns/
http://uxarchive.com/tasks/onboarding
https://fr.pinterest.com/marcuscoghlan/ui-patterns-onboarding/
3.3.2 Example : Buffer
Home page
Complete signup
Schedule a Tweet
4. Retention is King
Retention ?
By retention, I mean the process in which you convert new users who don’t care about your site into recurring users that are loyal and continually drive pageviews.Andrew Chen
The leaky bucket theory
I think of websites as "leaky buckets" where users are constantly getting poured into the top, and the site is constantly leaking users. The rate at which this happens can be a turned into a metric just like any other number.Andrew Chen
How to mesure retention ?
Cohort analysis
Cohort analysis ?
Cohort analysis is a subset of behavioral analytics that takes the data from a given web application and rather than looking at all users as one unit, it breaks them into related groups for analysis. These related groups, or cohorts, usually share common characteristics or experiences within a defined timespan.https://en.wikipedia.org
Cohort analysis : Example
Source : https://blog.kissmetrics.com/throw-away-vanity-metrics/
Churn rate ?
Churn rate (sometimes called attrition rate), in its broadest sense, is a measure of the number of individuals or items moving out of a collective group over a specific period of timehttps://en.wikipedia.org
4.1 Retention tactics
Emailing
Notifications
Content curation
Education
Drip marketing (1)
Drip marketing is a communication strategy that sends, or "drips," a pre-written set of messages to customers or prospects over time. These messages often take the form of email marketing, although other media can also be used.https://en.wikipedia.org
Drip marketing (2)
Source : http://www.pardot.com/infographic/basics-drip-campaigns-infographic/
Customer support
When we were acquired we had about 500,000 users on the system, 5 million people used Wufoo forms and reports whether they knew it or not. But our response time from 9 AM to 9 PM was between 7 to 12 minutes, from 9 PM to midnight was an hour, and then on the weekend it would be no longer than 24 hours.Kevin Hale
Ask for feedback
The best "growth hack" for user retention is talking to your users. They are the ONLY people that can tell how to keep them and how to find more like them. Unfortunatley, a lot of SaaS companies don't ask for feedback and when they do, they send out long surveys no one wants to answer.Ashli Do
Tools
5. Referral & Growth
Referral ?
Referral marketing is a process to increase word of mouth marketing by encouraging customers and contacts to talk as much as possible about a brand or product.https://en.wikipedia.org
Viral loop (1)
The steps a user goes through between entering the site to inviting the next set of new users.Andrew Chen
Viral loop (2)
See
ClickShare
CR - ClickRate
SR - ShareRate
k-factor (1)
The k-factor or viral coefficient measures how many new, secondary users an individual new user you acquire brings in over their lifetime.Jesse Farmer
k-factor (2)
K = i multiplied by c« i » is the number of invitations sent out by each customer or user
« c » the percent conversion rate of each invitation
k-factor (3)
A viral growth factor > 1 means an exponential organic user acquisition.
k-factor : example
Source : http://qz.com/249222/slacks-explosive-word-of-mouth-growth-in-one-amazing-chart/
The cycle time
The cycle time is the average time it takes from the moment that one of your users performs a viral action to the moment that a new user signs up because of this very action.http://techcrunch.com
Types of virality (1)
Inherent virality
Collaboration virality
Communication virality
Incentivized virality
Types of virality (2)
Embeddable virality
Signature virality
Social virality
Pure word of mouth virality
6. Money time
Revenue ?
This is basically counting the number of customer that you have.http://www.pierrelechelle.com
6.1 Tactics to increase revenue
Discount on an annual payment
Example : https://www.growthhacker.tv/signup/
Promotions and Discounts
Example : https://deals.creativebloq.com/sales/15th-anniversary-bundle
Test pricing
Talk to users!
Bundling
Example : https://www.designcuts.com/product/24-exceptional-quality-fonts/
Guarantees and support
Example : https://aws.amazon.com/fr/premiumsupport/
7. Final thoughts
« If you can not measure it, you can not
improve it. »Lord Kelvin
« Measure what can be measured, and make
measurable what cannot be measured. »
Galileo Galilei'
What now ?
Merci pour votre attention.
BibliographieTraction: A Startup Guide to Getting Customers - Justin Mares & Gabriel Weinberg http://www.amazon.com/Traction-Startup-Guide-Getting-Customers/dp/0976339609
Startup Metrics for Pirates - Dave McClure http://fr.slideshare.net/dmc500hats/startup-metrics-for-pirates-seedcamp-2008-presentation
The Ultimate Guide to Funnel Optimization - Sean Johnson http://www.slideshare.net/seanjohnson/ultimate-guide-to-funnel-optimization
Growth Hacking Like A Pirate, A Beginner’s Guide To Pirate Metrics - Liam Gooding http://blog.trak.io/growth-hacking-like-a-pirate-a-beginners-guide-to-pirate-metrics/
AARRR: Pirate Metrics for SaaS - Pierre Lechelle http://www.pierrelechelle.com/aarrr-pirate-metrics
