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The Process To Growth

THE PROCESS TO GROWTH No silver bullet. No magic hack. A methodical approach. STEP 1 Make something people want PRODUCT PRODUCT MARKET FIT Build for and with your customers, know what they want, and find the message that resonates with them. AUDIENCE According to Sean Ellis, you have reached product market fit if 40% of your customers would be very disappointed if they could not use your product. 40% STEP 2 calculate how much a user is worth LIFETIME VALUE Predict how much a user is worth over his/her entire relationship with your product to know how much you can spend on acquisition and retention. Calculate Lifetime Value (LTV) by asking how much a user spends ($ value), how often (daily, monthly, etc.) and for how long (months). LTV = order value x order frequency x customer lifetime CUSTOMER LIFECYCLE Acquisition Activation According to Dave McClure and its pirate metrics, startups need to get customers through 5 key stages: AARRR - Acquisition, Activation, Retention, Referral, and Revenue. Know where your customers are and optimize at each stage. To turn the equation Cost per Acquisition (CPA) to LTVinto your favor you can either lower your CPA (e.g. by improving your paid acquisition targeting) or increase your LTV (e.g. by improving your retention period). Retention Referral Revenue STEP 3 Define your metrics & channels QUANTIFY & PRIORITIZE 1. Define your KPI's (Key Performance Indicators), be sure to include a time period, and know what you are optimizing for: Learning? Volume? Cost? 2. Brainstorm ideas and quantify your results according to cost, time, impact, targeting, and Ideas Cost Time Impact Targeting Control Perfect World Low Low High High High SEM Medium Medium Medium High High control. This will be different for each business. Content Low High High Medium High Paid acquisition Medium Low Medium High Medium 3. Prioritize according to your capacity, budget, and time constraints. STEP 4 Go for it Predict Optimize IMPLEMENTATION Prioritize Go ahead and implement your ideas. Use qualitative and quantitative data to inform your predictions. Choose 1-2 channels at a time and define your test period. Analyze the outcome and optimize. Double down on channels that work and skip the ones that don't. Then start over again. Analyse Test Good luck! Measure Source Tradecraft @ tradecrafted.com Sean Ellis @ startup-marketing.com Brian Balfour @ coelevate.com Dave McClure @ 500hats.com Growth. Marketing. Branding. Positioning. Katharina Stiegelmar katharinastiegelmar.com

The Process To Growth

shared by katharina.stiegelmar on Feb 05
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After joining an incubator for growth marketing professionals in tech and getting insights from some of the best growth practitioners in the industry, I put together this infographic. Some startups mi...

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