The year was 1741, a magazine in Philadelphia publishes one of the first known advertisements for a product, and it was for coffee.
Over the years businesses have continually looked for new ways to grow an audience for their product or service. Direct mail, online banner ads, excessive email, content marketing, the tactics have changed as technology has evolved.
In this presentation we’ll cover a product driven growth framework. We’ll go through 3 key areas and give examples of how some of the fastest growing companies in the world are leveraging them to scale up their businesses at record speeds.
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Over the past 12 months that
business has grown rapidly
achieving some major
milestones.
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The following are 3 components
I feel are key to making a
product driven growth model
work.
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How can my product leverage existing
platforms for growth?
How can I add virality to my product?
How can I quickly introduce the user to the
value of my product?
Product Driven Growth
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How can my product leverage
existing platforms for growth?
#1
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After Facebook updated their algorithm the Pinterest growth
team doubled down on Google as their growth platform.
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RapGenius dominated SEO by providing unique features that
made their content 10X what competitors had.
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AirBnB provided a plugin that allowed their listings to be
automatically posted on Craigslist.
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We’ve recently built into Slacks platform with a GrowthBot to
help both marketers and sales grow their business.
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Figure out what channels
potential users of your
product spend their time on.
Use both quantitative and qualitative feedback.
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Channels Scale Predictabilit
y
Ease
Google SEO Medium High Low
Google
Adwords
Medium High Medium
Facebook
Ads
High Medium Medium
Referral Medium Low Medium
Virality High Low Low
Stack rank them in order of scale, the
predictability of results and ease to
implement.
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How can I add virality to my
product?
#2
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Viral loops are one of the best
ways to increase awareness of
your product and grow acquisition
of new users.
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Viral loops and product virality are not the same
things.
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Product Virality
Product spreads from one user
to another through customer to
customer contact.
Low CAC acquisition channel.
Does not include Word of
Mouth, PR or Incentivized
referrals.
Viral Loops
Product spreads from one user
to another through a number of
different loops.
The objective is to find
methods of converting your
existing user base into
promoters of your product.
Does include WOM and
Incentivization.
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What kind of viral loops can I add to my product?
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Word of Mouth Product Virality
(Distribution)
Product Virality
(Push)
Incentivized
Referrals
Customers
recommends the
product to other
customers or distribute
via communication
channels e.g. social
media
The product spreads
through customer to
customer contact. One
customer using the
product exposing it to
others.
The product spreads
through organic usage.
Customers require
other users in their
network to use the
product.
The product spreads
through incentivized
referrals. Customers
are rewarded in some
way for referring
others.
** Read: http://bit.ly/productvirality
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Word of mouth is typically measured by NPS.
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[Add HubSpot Chart Here.]
Word of Mouth
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Loop of a 1 billion dollar SaaS business
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User signs up to
Zoom and hosts a
meeting
Sends Zoom
meeting link to a
number of non Zoom
users
% of users accept
Zoom meeting and
click on branded link
% of those users
sign up for Zoom
account
PV (Distribution)
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User signs up to
Zoom and hosts a
meeting
Sends Zoom
meeting link to a
number of non Zoom
users
% of users accept
Zoom meeting and
click on branded link
% of those users
sign up for Zoom
account
PV (Distribution)
You need to know:
To track the performance
of this loop you need to
know.
1. How many users will
host meetings?
2. Average number of
attendees?
3. What channel is invite
sent?
4. % of users who click
on invite
5. % of users who sign
up
Loop of a 1 billion dollar SaaS business
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We’ve started to push on these loops in our own
products.
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PV (Distribution)
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We’ve started to push on these loops in our own
products.
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PV (Distribution)
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We’ve started to push on these loops in our own
products.
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PV (Distribution)
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We’ve started to push on these loops in our own
products.
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PV (Distribution)
You need to know:
To make this kind of loop
work, you need a lot of
sign ups and a great
product experience e.g.
loop for Zoom wouldn’t
work if the technology
sucked.
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Users in Slack need to invite their network to make
the tool valuable.
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PV (Push)
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Users of our CRM also need to invite their team onto
the product to get value from it.
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PV (Push)
You need to know:
We need to measure
1. The user wants to invite
their team to start using
CRM.
2. User invites a bunch of
recipients to the CRM.
3. Email is used to send
out the invites
4. % of those users click
on the link in invite to
signup.
5. % of them become new
users of the CRM.
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Incentivized Referrals
Loom incentivize users to refer two friends in order to
gain access to limited features.
You need to know:
Incentivizing users with
access to limited features
works best if they’re paying
the bill.
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Incentivized Referrals
PayPal spent up to $70 million on their incentivized
referral loop. It drove 5% to 7% of their daily growth.
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You can also incentive people to refer your product
before it’s ever launched.
You need to know:
Why it works:
1. Exclusivity: Feeling
part of a group, being
‘in the know’.
2. Anticipation: Provided
you with real time
update on position in
the list.
3. Referral: Provided you
with option to jump the
queue if you refer
others.
Incentivized Referrals
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Incentivized Referrals
You can also incentive people to refer your product
before it’s ever launched.
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How can I quickly introduce
the user to the value of my
product?
#3
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Product onboarding should
introduce users to the value of
your product in as short
amount of time as possible.
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User connects with 10 friends within 7 days
– Chamath Palihapitiya Former Growth Lead
One file in one Dropbox folder on one device
– ChenLi Wang Growth Team
2000 messages sent between a team
– Stewart Butterfield, Co-Founder
X users followed, Y% followed back
– Josh Elman, Former Growth Lead
It helps the user find your products AHA! moment
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We use R analysis to find predicators of an active
team within our free CRM.
Read: http://tomtunguz.com/performance-marketing-for-startups/
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We know weekly active
teams retain a lot better
and continue to use our
product for longer.
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It’s a lot easier to develop your
product with growth in mind rather
than it being an afterthought.
#DTS
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