How to get your customers engaged.

1. ©2015 StratAlign Group 1
Growth Hacking For
Lean Startups

2. ©2015 StratAlign Group
Agenda
• Lean startup 101
• Why growth hacking?
• Growth hacking tools
• Growth hacking concepts
• How to hack growth

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LEAN STARTUP 101

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Steve Blank’s Stages

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Problem/Market
Fit
Solution/Market
Fit
Product/Market
Fit
Revenue Growth
Profit

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Problem/Market
Fit
Solution/Market
Fit
Product/Market
Fit
Revenue Growth Profit
One Metric That Matters
Validated/Invalidated Hypotheses
Goal
Validate a morphine problem for a specific
target market
Exit Criteria
• Customer archetype(s)
• Validated morphine problem
• Understand how the customer is solving the problem now
• Market size
• Organization chart and influence map (B2B)
Other Key Metrics
• # of customer interviews
Business Model Canvas
Customer Segments, Value Proposition

9. ©2015 StratAlign Group
Problem/Market Fit

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Problem/Market
Fit
Solution/Market
Fit
Product/Market
Fit
One Metric That Matters
Validated/Invalidated Hypotheses
Goal
Determine the minimum features that
solve a morphine problem for a specific
target market
Exit Criteria
• Customer archetype(s)
• Minimum feature set to solve the customer’s problem
• Understand what and how the customer is willing to pay to solve the problem
• Market size (revised)
• Have a set of customers who are willing to pay now
Other Key Metrics
• # of customer interviews
Business Model Canvas
Customer Segments, Value Proposition,
Revenue Model
Revenue Growth Profit

11. ©2015 StratAlign Group
Solution/Problem Fit

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Problem/Market
Fit
Solution/Market
Fit
Product/Market
Fit
One Metric That Matters
Churn rate
Goal
Engaged, paying customers who have a
churn rate less than 5% monthly
Exit Criteria
• Churn rate is less than or equal to 5% monthly
Other Key Metrics
• WAU (Weekly Active Users)
• MAU (Monthly Active Users)
• Cohort analysis by activity
• Long term cancellation rate
Business Model Canvas
Customer Segments, Value Proposition,
Revenue Model, Customer Relationships
Revenue Growth Profit

13. ©2015 StratAlign Group
Product/Market Fit

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Problem/Market
Fit
Solution/Market
Fit
Product/Market
Fit
Revenue Growth Profit
One Metric That Matters
WOWG (Week Over Week Growth)
Goal
Consistently grow revenues
Exit Criteria
• WOWG is greater than or equal to 5%
Other Key Metrics
• ARPU (Average Revenue Per User)
• Churn rate
• WAU/MAU
• Activation %
• Time to conversion
• Referral rate
Business Model Canvas
Customer Segments, Value Proposition,
Revenue Model, Customer Relationships,
Channels

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Revenue Growth

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Problem/Market
Fit
Solution/Market
Fit
Product/Market
Fit
Revenue Growth Profit
One Metric That Matters
Profit Margin %
Goal
Operationalize the product to get to
profitability
Exit Criteria
• The product is profitable and has a high growth rate
Other Key Metrics
• CAC (Customer Acquisition Cost)
• LTV (Life Time Value)
• ARPU (Average Revenue Per User)
• MRR (Monthly Recurring Revenue)
• LTV to CAC ratio
• Months to recover CAC
• COGS/customer (Cost Of Goods Sold)
• Time to breakeven
Business Model Canvas
Full canvas

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Profit

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WHY GROWTH HACKING?

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Problem/Market
Fit
Solution/Market
Fit
Product/Market
Fit
Revenue Growth
Profit

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You discovered a target market who has
that problem

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You have found a really painful problem

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You have created a solution that customers
tell you really solves the problem

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So, you build your MVP and invite your first
customers to use it

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The customers sign up and
become activated

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Then what happens?

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Nothing

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So, you buy some AdWords and get
more sign ups. Then, what happens?

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0
0.2
0.4
0.6
0.8
1
1.2
1 2 3 4 5 6 7
Product Usage

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Why?

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Your product sucks

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TheTrough of Sorrow

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Most startup founders
focus heavily on product but
most of a startup's risk lies
in distribution
Dave McClure

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Marketing
Customer
Development
Data
Growth
Hacker

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Growth HackingTools

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Install Analytics

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Google Analytics isWorth WhatYou Pay For It
People, not page views, buy software

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AnalyticsTools

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Email
You will want to be able to A/B test, track opens and click
through’s

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Triggered Email

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Chat
Talk to your customers in real time

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SMS
If your customer is a Millennial, they prefer texting

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WebsiteTours

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App Notifications
If you have a mobile app, you can use push notifications to
engage your customers

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In App Interventions

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Glue
Apps that put all the pieces together

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Growth Hacking Concepts

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Acquisition
Bring prospective customers to your site

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Activation
Sign up

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Retention
Engage users

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Referral

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A/B testing
LinkBaitPro
Get Started
LinkBaitPro
Get Started
A B

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What to/Not toTest
LinkBaitPro
Get Started
For recreational use only. Do not staple or paper clip. All models over
18 years of age. Prize not redeemable for cash value. If condition
persists, consult your physician. No user-serviceable parts inside.
Test the
Headline
Image vs.
Video
Call to action
text and color
Don’t
spend a
lot of time
testing
the copy

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Events
1. Login
2. Upload Photos
3. Tag Photos
4. Share Photos
5. Comment on Others Photos

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Don’t Focus on AcquisitionWhen
Activation and Retention are Low
Visited Site Signed Up Activation Billed
2,177
14 3 1
0.6% 21.4% 33.3%
0.0%

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Cohort Analysis

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Track Events
Across Cohorts

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The One MetricThat Matters
At least 7 friends within 10 days of signing up
Getting a new user to link a device and add a file
Once a user follows 30 people, they’re more or less active forever
If someone comes back a day after signing up for a game, that is a
leading indicator of them becoming an engaged and paying user.

59. ©2015 StratAlign Group
Post Launch Stages
1. Product/Market Fit
USER
DISENGAGE
D USER
ENGAGED
USER
REACTIVAT
E
TRIAL OVER
PAYING
CUSTOMER
DISSATISFI
ED
RESOLUTIO
N
DISENGAGE
D
REACTIVAT
E
CANCEL CANCEL
ACCOUNT CANCELLED OR
BILLING INFO EXPIRES
Free user
disengagement
Paid
Conversion
Support
Data
Reactivaton
Rate
Freemium
Churn
Trial
Abandonment
Rate
Disengagement

60. ©2015 StratAlign Group
Post Launch Stages
1. Product/Market Fit
2. Revenue Growth
USER
DISENGAGE
D USER
ENGAGED
USER
REACTIVAT
E
TRIAL OVER
PAYING
CUSTOMER
DISSATISFI
ED
RESOLUTIO
N
DISENGAGE
D
REACTIVAT
E
CANCEL CANCEL
ACCOUNT CANCELLED OR
BILLING INFO EXPIRES
Free user
disengagement
Paid
Conversion
Support
Data
Reactivaton
Rate
Freemium
Churn
Trial
Abandonment
Rate
Disengagement
PAID DIRECT SEARCH WOM
Customer Acquisition Cost
VISITOR
FREEMIUM/
TRIAL
OFFER
ENROLLME
NT
Long funnel
health
INHERENT
VITALITY
INVITE
OTHERS
Viral coefficient
Viral rate

61. ©2015 StratAlign Group
Post Launch Stages
1. Product/Market Fit
2. Revenue Growth
3. Profit
USER
DISENGAGE
D USER
ENGAGED
USER
REACTIVAT
E
TRIAL OVER
PAYING
CUSTOMER
DISSATISFI
ED
RESOLUTIO
N
DISENGAGE
D
REACTIVAT
E
CANCEL CANCEL
ACCOUNT CANCELLED OR
BILLING INFO EXPIRES
Free user
disengagement
Paid
Conversion
Support
Data
Reactivaton
Rate
Freemium
Churn
Trial
Abandonment
Rate
Disengagement
PAID DIRECT SEARCH WOM
Customer Acquisition Cost
VISITOR
FREEMIUM/
TRIAL
OFFER
ENROLLME
NT
Long funnel
health
INHERENT
VITALITY
INVITE
OTHERS
Viral coefficient
Viral rate
UPSELLING
CAPACITY
LIMIT
FORMER USERS FORMER CUSTOMERS
Tiering
Upselling
Rate
Unpaid Churn Rate Paid Churn Rate
User Lifetime Value Customer Lifetime Value

62. ©2015 StratAlign Group
Post Launch Stages
1. Stickiness
2. Traffic
3. Revenue
PAID DIRECT SEARCH WOM INHERENT
VITALITY
Customer Acquisition Cost
VISITOR
FREEMIUM/
TRIAL
OFFER
ENROLLME
NT
USER
INVITE
OTHERS
DISENGAGE
D USER
ENGAGED
USER
REACTIVAT
E
TRIAL OVER
PAYING
CUSTOMER
UPSELLING
CAPACITY
LIMIT
DISSATISFI
ED
RESOLUTIO
N
DISENGAGE
D
REACTIVAT
E
CANCEL CANCEL
ACCOUNT CANCELLED OR
BILLING INFO EXPIRES
FORMER USERS FORMER CUSTOMERS
Long funnel
health
Free user
disengagement
Paid
Conversion Tiering
Upselling
Rate
Support
Data
Reactivaton
Rate
Freemium
Churn
Trial
Abandonment
Rate
Disengagement
Unpaid Churn Rate Paid Churn Rate
User Lifetime Value Customer Lifetime Value
Viral coefficient
Viral rate

63. ©2015 StratAlign Group
• Measure engagement
• DAU/WAU – What does active mean?
• Segment
• New Functionality
• Does it improve stickiness?
• How do we measure that?
• Lazy registration
Stickiness

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10X Product Launch

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How to Hack Growth

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It’s ALL About Onboarding

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1. Find OutWhy
Talk to your customers

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2. DetermineYour Hypothesis onWhat
Engaged Behavior Looks Like
Are your customers solving their problem?
What is the definition of engaged for your product?

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Get a Baseline
Signed Up Login Uploaded
Photos
Tag
Photos
2,177
366
41
3
16.8% 11.2% 7.3%
0.0%

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Create a Dashboard

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3. Create an Intervention and Do It

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Bugsnag captures errors from your web and
mobile applications. The first email they send
to new signups is very simple, but has been
yielding great results.
Hey {{ first_name }},
I'm James, CEO of Bugsnag. I wanted to reach
out to see if you need any help getting started.
Cheers,
James
Surprise Personal Email

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Bad
We've missed you on CouchSurfing! It's been
a long time since we've seen you around!
The last time you logged into CouchSurfing
was four months ago.
Props to Segment.io

76. ©2015 StratAlign Group
The Last EmailYouWill Ever Send
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In App Intervention

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4. Perform a Cohort Analysis

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5. Analyze the Results

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6. D.C. al Fine
Create a
Hypotheses
Measure the
Results
Test the
Hypotheses
With an
Intervention
Proceed,
Pivot, or
Punt

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Questions