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Strategizing for Growth
PM @qualtrics, Data Driven Product Management
Shek Viswanathan
Shek Viswanathan abishekv@qualtrics.com
Product Management
The Big Question
The Big Question
How do you know if
The Big Question
How do you know if
your
The Big Question
How do you know if
your
The Big Question
players,
customers,
users
><
How do you know if
your
enjoy
The Big Question
players,
customers,
users
playing,
using
><
><
How do you know if
your
enjoy
your
The Big Question
players,
customers,
users
playing,
using
game,
product,
service
?><
><
><
Understanding and improving your product health
comes down to breaking customer signals into a suite
of metrics and identifying key levers that drive growth.
Understand the Core Loop
Growth Playbook
Understand the Core Loop
Growth Playbook
Step 4.
Prioritize product features,
build and iterate
Step 3.
Identify which KPI influence growth
Step 2.
Build a Growth Model based on core KPI
from the product
Step 1.
Establish the core loop.
Measure Core Loop Engagement
Understand the Core Loop
Model for Growth
Growth Playbook
Step 4.
Prioritize product features,
build and iterate
Step 3.
Identify which KPI influence growth
Step 2.
Build a Growth Model based on core KPI
from the product
Step 1.
Establish the core loop.
Measure Core Loop Engagement
Understand the Core Loop
Model for Growth
Growth Playbook
Step 4.
Prioritize product features,
build and iterate
Step 3.
Identify which KPI influence growth
Step 2.
Build a Growth Model based on core KPI
from the product
Step 1.
Establish the core loop.
Measure Core Loop Engagement
Understand the Core Loop
Model for Growth
Identify Leverage
Growth Playbook
Step 4.
Prioritize product features,
build and iterate
Step 3.
Identify which KPI influence growth
Step 2.
Build a Growth Model based on core KPI
from the product
Step 1.
Establish the core loop.
Measure Core Loop Engagement
Understand the Core Loop
Model for Growth
Identify Leverage
Growth Playbook
Step 4.
Prioritize product features,
build and iterate
Step 3.
Identify which KPI influence growth
Step 2.
Build a Growth Model based on core KPI
from the product
Step 1.
Establish the core loop.
Measure Core Loop Engagement
Understand the Core Loop
Model for Growth
Identify Leverage
Growth Playbook
Prioritize
and Build
Step 4.
Prioritize product features,
build and iterate
Step 3.
Identify which KPI influence growth
Step 2.
Build a Growth Model based on core KPI
from the product
Step 1.
Establish the core loop.
Measure Core Loop Engagement
Understand the Core Loop
Model for Growth
Identify Leverage
Growth Playbook
Prioritize
and Build
Step 4.
Prioritize product features,
build and iterate
Step 3.
Identify which KPI influence growth
Step 2.
Build a Growth Model based on core KPI
from the product
Step 1.
Establish the core loop.
Measure Core Loop Engagement
Understand the Core Loop
Model for Growth
Identify Leverage
1. Understand the Core Loop
Prioritize
and Build
Step 4.
Prioritize product features,
build and iterate
Step 3.
Identify which KPI influence growth
Step 2.
Build a Growth Model based on core KPI
from the product
Step 1.
Establish the core loop.
Measure Core Loop Engagement
What constitutes a Core Loop?
What constitutes a Core Loop?
What constitutes a Core Loop?
Playing Words
What constitutes a Core Loop?
Playing Words
What constitutes a Core Loop?
Playing Words
Playing Hands
What constitutes a Core Loop?
Playing Words
Playing Hands
What constitutes a Core Loop?
Playing Words
Playing Hands
Posting
What constitutes a Core Loop?
Playing Words
Playing Hands
Posting
What constitutes a Core Loop?
Playing Words
Playing Hands
Posting
Grammin'
Completing the core loop is correlated to long term
retention.
Someone who plays a Word in 24 hours
after install, is more likely to return next
week than someone who doesn’t.
User with 7 friends in 10 days likely to
retain forever
Measuring core loop engagement is key to understanding product health
Only core action will not do. Other features that
complement the core loop need to be monitored.
Only core action will not do. Other features that
complement the core loop need to be monitored.
Creating a game with others
Only core action will not do. Other features that
complement the core loop need to be monitored.
Creating a game with others
Adding Friends, posting pictures, status updates, etc
What is a Product Core Loop?
What is a Product Core Loop?
Inner Loop
Low Investment
Daily Habit
What is a Product Core Loop?
Outer Loop
Medium/High Investment
Inner Loop
Low Investment
Daily Habit
What is a Product Core Loop?
Inner Loop
Outer Loop
Low Investment
Daily Habit
Medium/High Investment
Minor
Reward
Major
Reward
What is a Product Core Loop?
Inner Loop
Outer Loop
Low Investment
Daily Habit
Medium/High Investment
Trigger
Notification,
User Initiated
Minor
Reward
Major
Reward
What is a Product Core Loop?
Inner Loop
Outer Loop
Low Investment
Daily Habit
Medium/High Investment
Trigger
Notification,
User Initiated
Activity
Passive,
Active
Minor
Reward
Major
Reward
What is a Product Core Loop?
Inner Loop
Outer Loop
Low Investment
Daily Habit
Medium/High Investment
Trigger
Notification,
User Initiated
Activity
Passive,
Active
Start
Task
User Initiated
Minor
Reward
Major
Reward
What is a Product Core Loop?
Inner Loop
Outer Loop
Low Investment
Daily Habit
Medium/High Investment
Trigger
Notification,
User Initiated
Activity
Passive,
Active
Start
Task
User Initiated
Complete
Cross a
milestone
Minor
Reward
Major
Reward
2. Modeling for Growth
Understand the Core Loop
Model for Growth
Identify Leverage
Prioritize
and Build
Step 4.
Prioritize product features,
build and iterate
Step 3.
Identify which KPI influence growth
Step 2.
Build a Growth Model based on core KPI
from the product
Step 1.
Establish the core loop.
Measure Core Loop Engagement
Now that we know what core loop action to measure,
how do we build a model for growth?
Building the model
Modeling Audience Growth v1: Installs + Retention = DAU
Modeling Audience Growth v2: Over time WAU * Engagement = DAU
Modeling Revenue Growth v1: DAU * % Converting * ARPPU = Revenue
Building the model
Modeling Audience Growth v1: Installs + Retention = DAU
Modeling Audience Growth v2: Over time WAU * Engagement = DAU
Modeling Revenue Growth v1: DAU * % Converting * ARPPU = Revenue
Building the model
Modeling Audience Growth v1: Installs + Retention = DAU
Modeling Audience Growth v2: Over time WAU * Engagement = DAU
Modeling Revenue Growth v1: DAU * % Converting * ARPPU = Revenue
Building the model
Modeling Audience Growth v1: Installs + Retention = DAU
Modeling Audience Growth v2: Over time WAU * Engagement = DAU
Modeling Revenue Growth v1: DAU * % Converting * ARPPU = Revenue
Building the model
Similar models can be built for lower frequency products such as Travel or Payments
Modeling Audience Growth v1: Installs + Retention = DAU
Modeling Audience Growth v2: Over time WAU * Engagement = DAU
Modeling Revenue Growth v1: DAU * % Converting * ARPPU = Revenue
Building the model
Similar models can be built for lower frequency products such as Travel or Payments
Choosing a right platform to measure and instrument metrics
is as important as the act of measurement
A model can look like this over time…
Retention
Return Rates
Activations
Lapsers
Reactivations
Engagement
Cohorts
New Users Returning Users
Payers
High Value Payers
High, Med, Low
Engaged
Txn size, Conversion
So, now you know how to measure the core loop, and
also have a model for growth. How do you iterate
towards success state?
Success State
Success state is usually a single metric (often termed the Northstar
Metric) or a suite of metrics that are directly correlated with growth.
Product teams set goals for success state and rally the team around
those goals.
Example: Grow Active Users by x% YoY
Success State
Success state is usually a single metric (often termed the Northstar
Metric) or a suite of metrics that are directly correlated with growth.
Product teams set goals for success state and rally the team around
those goals.
Example: Grow Active Users by x% YoY
Success State
Success state is usually a single metric (often termed the Northstar
Metric) or a suite of metrics that are directly correlated with growth.
Product teams set goals for success state and rally the team around
those goals.
Example: Grow Active Users by x% YoY
Success State
3. Identify Leverage
Understand the Core Loop
Model for Growth
Identify Leverage
Prioritize
and Build
Step 4.
Prioritize product features,
build and iterate
Step 3.
Identify which KPI influence growth
Step 2.
Build a Growth Model based on core KPI
from the product
Step 1.
Establish the core loop.
Measure Core Loop Engagement
Understanding where your product is in its life cycle is
important to establish what levers to pull to inflect
growth.
Product Life Cycle
Time
Audience/
Revenue
Early Stage
Product Life Cycle
Activation
Core Loop Engagement
Early Retention & Monetization
Time
Audience/
Revenue
Early Stage
Product Life Cycle
Growth Stage
Activation
Core Loop Engagement
Early Retention & Monetization
Stability in core metrics
Long Term Retention
Monetization
Virtuous Loops & Virality
Time
Audience/
Revenue
Early Stage
Product Life Cycle
Mature Product
Growth Stage
Activation
Core Loop Engagement
Early Retention & Monetization
Stability in core metrics
Long Term Retention
Monetization
Virtuous Loops & Virality
Identify Leverage
Optimize
Grow LTV
Time
Audience/
Revenue
What would you do?
Product A adds 100k new users every day and retains 5% of users after
30 days.
Product team has two ideas for features
Feature A - Increasing virality (installs)
Feature B - Increasing retention (D30)
What would you do?
Product A adds 100k new users every day and retains 5% of users after
30 days.
Product team has two ideas for features
Feature A - Increasing virality (installs)
Feature B - Increasing retention (D30)
What would you do?
Product A adds 100k new users every day and retains 5% of users after
30 days.
Product team has two ideas for features
Feature A - Increasing virality (installs)
Feature B - Increasing retention (D30)
What would you do?
In 1 Quarter
Feature A:
Hits 2.5M Users, with
5% D30 retention
Feature B:
Hits 2.1M Users, with
15% D30 retention
In 1 Year
Feature A:
Product Hits 4M
Users, with 5% D30
retention
Feature B:
Product Hits 5.5M
Users, with 15% D30
retention
Once you’ve identified leverage points, switch your hat
to that of a ruthless prioritizer and help the team
prioritize and build the product roadmap.
4. Building Product Roadmap
Understand the Core Loop
Model for Growth
Identify Leverage
Prioritize
and Build
Step 4.
Prioritize product features,
build and iterate
Step 3.
Identify which KPI influence growth
Step 2.
Build a Growth Model based on core KPI
from the product
Step 1.
Establish the core loop.
Measure Core Loop Engagement
The fun begins..
Brainstorm
Ideate
Define
Set Goals Add to List
Prioritize
BuildMeasure
Iterate
We talked about 4 things…
Understand the Core Loop
Model for Growth
Identify Leverage
Prioritize
and Build
Step 4.
Prioritize product features,
build and iterate
Step 3.
Identify which KPI influence growth
Step 2.
Build a Growth Model based on core KPI
from the product
Step 1.
Establish the core loop.
Measure Core Loop Engagement
Question: Did all of this add up for the product over
time? How do we measure this?
Most important health metric is LTV…
Retention
How long do your users retain? Is
this improving with every cohort?
Average Revenue per DAU
What % of your users convert?
How much do they spend per
day/month?
Lifetime Value
Revenue that a customer will bring
to your company over their life time
Is the core loop engagement getting stronger over
time? Will manifest in stronger LTVs over time.
Measuring LTV over time reveals changes in…
If retention is getting stronger - each same sized
cohort will generate more revenue over time.
Engagement
Retention
Monetization
Are users converting at the same levels over time?
If average revenue per daily active user stabilizes
or grows, it will show in increasing LTV.
Ultimately, breaking customer signals into a suite of
metrics and identifying key leverage points is vital for
strategizing and building a roadmap for growth.
Thank You
Shek Viswanathan
https://www.linkedin.com/in/abishekv

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Strategizing for Growth

  • 1. Strategizing for Growth PM @qualtrics, Data Driven Product Management Shek Viswanathan
  • 5. How do you know if The Big Question
  • 6. How do you know if your The Big Question
  • 7. How do you know if your The Big Question players, customers, users ><
  • 8. How do you know if your enjoy The Big Question players, customers, users playing, using >< ><
  • 9. How do you know if your enjoy your The Big Question players, customers, users playing, using game, product, service ?>< >< ><
  • 10. Understanding and improving your product health comes down to breaking customer signals into a suite of metrics and identifying key levers that drive growth.
  • 11. Understand the Core Loop Growth Playbook
  • 12. Understand the Core Loop Growth Playbook Step 4. Prioritize product features, build and iterate Step 3. Identify which KPI influence growth Step 2. Build a Growth Model based on core KPI from the product Step 1. Establish the core loop. Measure Core Loop Engagement
  • 13. Understand the Core Loop Model for Growth Growth Playbook Step 4. Prioritize product features, build and iterate Step 3. Identify which KPI influence growth Step 2. Build a Growth Model based on core KPI from the product Step 1. Establish the core loop. Measure Core Loop Engagement
  • 14. Understand the Core Loop Model for Growth Growth Playbook Step 4. Prioritize product features, build and iterate Step 3. Identify which KPI influence growth Step 2. Build a Growth Model based on core KPI from the product Step 1. Establish the core loop. Measure Core Loop Engagement
  • 15. Understand the Core Loop Model for Growth Identify Leverage Growth Playbook Step 4. Prioritize product features, build and iterate Step 3. Identify which KPI influence growth Step 2. Build a Growth Model based on core KPI from the product Step 1. Establish the core loop. Measure Core Loop Engagement
  • 16. Understand the Core Loop Model for Growth Identify Leverage Growth Playbook Step 4. Prioritize product features, build and iterate Step 3. Identify which KPI influence growth Step 2. Build a Growth Model based on core KPI from the product Step 1. Establish the core loop. Measure Core Loop Engagement
  • 17. Understand the Core Loop Model for Growth Identify Leverage Growth Playbook Prioritize and Build Step 4. Prioritize product features, build and iterate Step 3. Identify which KPI influence growth Step 2. Build a Growth Model based on core KPI from the product Step 1. Establish the core loop. Measure Core Loop Engagement
  • 18. Understand the Core Loop Model for Growth Identify Leverage Growth Playbook Prioritize and Build Step 4. Prioritize product features, build and iterate Step 3. Identify which KPI influence growth Step 2. Build a Growth Model based on core KPI from the product Step 1. Establish the core loop. Measure Core Loop Engagement
  • 19. Understand the Core Loop Model for Growth Identify Leverage 1. Understand the Core Loop Prioritize and Build Step 4. Prioritize product features, build and iterate Step 3. Identify which KPI influence growth Step 2. Build a Growth Model based on core KPI from the product Step 1. Establish the core loop. Measure Core Loop Engagement
  • 20. What constitutes a Core Loop?
  • 21. What constitutes a Core Loop?
  • 22. What constitutes a Core Loop? Playing Words
  • 23. What constitutes a Core Loop? Playing Words
  • 24. What constitutes a Core Loop? Playing Words Playing Hands
  • 25. What constitutes a Core Loop? Playing Words Playing Hands
  • 26. What constitutes a Core Loop? Playing Words Playing Hands Posting
  • 27. What constitutes a Core Loop? Playing Words Playing Hands Posting
  • 28. What constitutes a Core Loop? Playing Words Playing Hands Posting Grammin'
  • 29. Completing the core loop is correlated to long term retention. Someone who plays a Word in 24 hours after install, is more likely to return next week than someone who doesn’t. User with 7 friends in 10 days likely to retain forever Measuring core loop engagement is key to understanding product health
  • 30. Only core action will not do. Other features that complement the core loop need to be monitored.
  • 31. Only core action will not do. Other features that complement the core loop need to be monitored. Creating a game with others
  • 32. Only core action will not do. Other features that complement the core loop need to be monitored. Creating a game with others Adding Friends, posting pictures, status updates, etc
  • 33. What is a Product Core Loop?
  • 34. What is a Product Core Loop? Inner Loop Low Investment Daily Habit
  • 35. What is a Product Core Loop? Outer Loop Medium/High Investment Inner Loop Low Investment Daily Habit
  • 36. What is a Product Core Loop? Inner Loop Outer Loop Low Investment Daily Habit Medium/High Investment Minor Reward Major Reward
  • 37. What is a Product Core Loop? Inner Loop Outer Loop Low Investment Daily Habit Medium/High Investment Trigger Notification, User Initiated Minor Reward Major Reward
  • 38. What is a Product Core Loop? Inner Loop Outer Loop Low Investment Daily Habit Medium/High Investment Trigger Notification, User Initiated Activity Passive, Active Minor Reward Major Reward
  • 39. What is a Product Core Loop? Inner Loop Outer Loop Low Investment Daily Habit Medium/High Investment Trigger Notification, User Initiated Activity Passive, Active Start Task User Initiated Minor Reward Major Reward
  • 40. What is a Product Core Loop? Inner Loop Outer Loop Low Investment Daily Habit Medium/High Investment Trigger Notification, User Initiated Activity Passive, Active Start Task User Initiated Complete Cross a milestone Minor Reward Major Reward
  • 41. 2. Modeling for Growth Understand the Core Loop Model for Growth Identify Leverage Prioritize and Build Step 4. Prioritize product features, build and iterate Step 3. Identify which KPI influence growth Step 2. Build a Growth Model based on core KPI from the product Step 1. Establish the core loop. Measure Core Loop Engagement
  • 42. Now that we know what core loop action to measure, how do we build a model for growth?
  • 44. Modeling Audience Growth v1: Installs + Retention = DAU Modeling Audience Growth v2: Over time WAU * Engagement = DAU Modeling Revenue Growth v1: DAU * % Converting * ARPPU = Revenue Building the model
  • 45. Modeling Audience Growth v1: Installs + Retention = DAU Modeling Audience Growth v2: Over time WAU * Engagement = DAU Modeling Revenue Growth v1: DAU * % Converting * ARPPU = Revenue Building the model
  • 46. Modeling Audience Growth v1: Installs + Retention = DAU Modeling Audience Growth v2: Over time WAU * Engagement = DAU Modeling Revenue Growth v1: DAU * % Converting * ARPPU = Revenue Building the model
  • 47. Modeling Audience Growth v1: Installs + Retention = DAU Modeling Audience Growth v2: Over time WAU * Engagement = DAU Modeling Revenue Growth v1: DAU * % Converting * ARPPU = Revenue Building the model Similar models can be built for lower frequency products such as Travel or Payments
  • 48. Modeling Audience Growth v1: Installs + Retention = DAU Modeling Audience Growth v2: Over time WAU * Engagement = DAU Modeling Revenue Growth v1: DAU * % Converting * ARPPU = Revenue Building the model Similar models can be built for lower frequency products such as Travel or Payments Choosing a right platform to measure and instrument metrics is as important as the act of measurement
  • 49. A model can look like this over time… Retention Return Rates Activations Lapsers Reactivations Engagement Cohorts New Users Returning Users Payers High Value Payers High, Med, Low Engaged Txn size, Conversion
  • 50. So, now you know how to measure the core loop, and also have a model for growth. How do you iterate towards success state?
  • 52. Success state is usually a single metric (often termed the Northstar Metric) or a suite of metrics that are directly correlated with growth. Product teams set goals for success state and rally the team around those goals. Example: Grow Active Users by x% YoY Success State
  • 53. Success state is usually a single metric (often termed the Northstar Metric) or a suite of metrics that are directly correlated with growth. Product teams set goals for success state and rally the team around those goals. Example: Grow Active Users by x% YoY Success State
  • 54. Success state is usually a single metric (often termed the Northstar Metric) or a suite of metrics that are directly correlated with growth. Product teams set goals for success state and rally the team around those goals. Example: Grow Active Users by x% YoY Success State
  • 55. 3. Identify Leverage Understand the Core Loop Model for Growth Identify Leverage Prioritize and Build Step 4. Prioritize product features, build and iterate Step 3. Identify which KPI influence growth Step 2. Build a Growth Model based on core KPI from the product Step 1. Establish the core loop. Measure Core Loop Engagement
  • 56. Understanding where your product is in its life cycle is important to establish what levers to pull to inflect growth.
  • 58. Early Stage Product Life Cycle Activation Core Loop Engagement Early Retention & Monetization Time Audience/ Revenue
  • 59. Early Stage Product Life Cycle Growth Stage Activation Core Loop Engagement Early Retention & Monetization Stability in core metrics Long Term Retention Monetization Virtuous Loops & Virality Time Audience/ Revenue
  • 60. Early Stage Product Life Cycle Mature Product Growth Stage Activation Core Loop Engagement Early Retention & Monetization Stability in core metrics Long Term Retention Monetization Virtuous Loops & Virality Identify Leverage Optimize Grow LTV Time Audience/ Revenue
  • 62. Product A adds 100k new users every day and retains 5% of users after 30 days. Product team has two ideas for features Feature A - Increasing virality (installs) Feature B - Increasing retention (D30) What would you do?
  • 63. Product A adds 100k new users every day and retains 5% of users after 30 days. Product team has two ideas for features Feature A - Increasing virality (installs) Feature B - Increasing retention (D30) What would you do?
  • 64. Product A adds 100k new users every day and retains 5% of users after 30 days. Product team has two ideas for features Feature A - Increasing virality (installs) Feature B - Increasing retention (D30) What would you do?
  • 65. In 1 Quarter Feature A: Hits 2.5M Users, with 5% D30 retention Feature B: Hits 2.1M Users, with 15% D30 retention
  • 66. In 1 Year Feature A: Product Hits 4M Users, with 5% D30 retention Feature B: Product Hits 5.5M Users, with 15% D30 retention
  • 67. Once you’ve identified leverage points, switch your hat to that of a ruthless prioritizer and help the team prioritize and build the product roadmap.
  • 68. 4. Building Product Roadmap Understand the Core Loop Model for Growth Identify Leverage Prioritize and Build Step 4. Prioritize product features, build and iterate Step 3. Identify which KPI influence growth Step 2. Build a Growth Model based on core KPI from the product Step 1. Establish the core loop. Measure Core Loop Engagement
  • 69. The fun begins.. Brainstorm Ideate Define Set Goals Add to List Prioritize BuildMeasure Iterate
  • 70. We talked about 4 things… Understand the Core Loop Model for Growth Identify Leverage Prioritize and Build Step 4. Prioritize product features, build and iterate Step 3. Identify which KPI influence growth Step 2. Build a Growth Model based on core KPI from the product Step 1. Establish the core loop. Measure Core Loop Engagement
  • 71. Question: Did all of this add up for the product over time? How do we measure this?
  • 72. Most important health metric is LTV… Retention How long do your users retain? Is this improving with every cohort? Average Revenue per DAU What % of your users convert? How much do they spend per day/month? Lifetime Value Revenue that a customer will bring to your company over their life time
  • 73. Is the core loop engagement getting stronger over time? Will manifest in stronger LTVs over time. Measuring LTV over time reveals changes in… If retention is getting stronger - each same sized cohort will generate more revenue over time. Engagement Retention Monetization Are users converting at the same levels over time? If average revenue per daily active user stabilizes or grows, it will show in increasing LTV.
  • 74. Ultimately, breaking customer signals into a suite of metrics and identifying key leverage points is vital for strategizing and building a roadmap for growth.