Customer growth sells your product. Learn how to hack it.
Building Growth Teams
The growth team is in charge of increasing a company’s revenue and bringing in new clients. A growth team has individuals with cross-functional competence. They originate from data analysis, product design, and marketing. These social groups are complementary to one another.
Steps Of The Hacking Process
Analyze: look out for what features customers use, what screens they use to visit the app, how often they open the app, and what other apps they use.
Ideate: members need to submit as many ideas as possible
Prioritize: Prioritizing means scoring ideas.
Test: Testing is done with the goal of identifying which ideas have practical value.
Learning more by learning faster is also the goal—and the great benefit—of the high-tempo growth hacking process. Companies that learn the most quickly grow the most quickly.
Hacking Retention
The purpose of a business is to create and keep customers. The main strategy for retaining customers is to provide a product or a service that is of high quality and that continuously addresses a need of theirs.
Three Phrases Of Retention
- The initial retention period: a new user becomes convinced that using a product or a service is beneficial to them
- The medium retention period: the interest in a product’s novelty fades. The mission of the growth team is to make using the product a habit
- The long-term retention. The role of growth teams is to ensure that the product keeps offering more value.
Organizational Arrangements for Growth Teams
- Models that are product-led (functional) and report to a product manager
- A separate team that reports to the growth team’s leader.
Developing a must-have product is a prerequisite for rapid and sustainable growth.
To determine whether a product is a must-have, create a survey with the following question: “How disappointed would you be if the product was no longer available tomorrow?” If at least 40% of respondents said they were “very disappointed,” it is a must-have.
It should go without saying that the longer you retain customers, the more opportunity you have to earn more revenue from them, whether that’s from selling them more items or services, from ongoing subscription renewals, or from bringing in more advertising revenue due to advertisers wanting to target your large and loyal customer base.
Achieving stable retention should not be viewed as a benchmark that once passed can be assumed has been accomplished and that the team is done with it; teams must expect to continue to work on sustaining retention.
Hacking Acquisition
You’re ready to start hacking the first stage of the growth funnel: acquiring customers, once you’ve assembled your growth team, identified your key growth levers, and done enough testing to establish that your product is a must-have.
The first message a potential customer sees about your product should explain what they hope to gain from it.
Hacking Monetization
Products are created so that they can be monetized.
The ideal situation is to increase the lifetime value of a customer (LTV).
Retailers are concerned with making sure that their customers buy more of what they sell. While a SaaS company might be more concerned with getting customers to renew their subscriptions.
The Right Leader
A leader who actively engages in concept generation and experimentation should be on growth teams. Selecting fundamental emphasis areas and goals is one of the development leader’s main duties. They must also confirm that the metrics selected by the team to track and aim to improve upon are appropriate for the set growth objectives.
Channels that Bring Customers
There are two ways to discover which marketing channels bring in the most customers: discovery and optimization.
Ranking factors:
Cost. How much do you expect to expand on a particular channel compared to others?
Targeting. How easy is it to reach your intended audience?
Control. How likely is it for you to change an experiment that’s running?
Scale. How large an audience can you reach with the experiment?
Input time. How much time will it take to launch the experiment?
Output time. How long will it take to get results from the experiment?
Hacking Activation
The first step in hacking activation is to identify all the steps that a customer takes to realize your product is a must-have.
The next step is to calculate the conversion rates for each of the steps on the way to the aha moment. The goal of the growth team is to identify problems in the activation process and eliminate friction.
Desire – Friction = Conversion Rate
