[U&I SUMMIT 2017] FabFitFun >> David Oh "Scalable Growth"

SCALABLE GROWTH
500 STARTUPS
UNITY AND INCLUSION SUMMIT (LOS ANGELES) - DIVERSITY IN TECH
JAN 21ST 2017
@davidyoh | david@fabfitfun.com |linkedin.com/in/davidoh

HELLO, I’M DAVID OH
Chief Product Officer &
Head of Growth @ Fabfitfun

BEFORE WE DISCUSS GROWTH…
A little bit about FabFitFun
and..
A little bit about me

We are a Quarterly Lifestyle Subscription Box for Women.
For $49.99 a season, FabFitFun members receive a curated lifestyle box filled with over $200 of the best full-
size beauty, fashion, fitness, health, wellness, technology, and home essentials. Brands gain unparalleled
access hundreds of thousands of women across the US and Canada through the box.

79% Female 21% Male
57% Minority. Pretty diverse.

Dan Broukhim
Founder, Co-CEO
Katie Rosen
Founder, Editor in Chief
Zeina Charara
SVP of Finance and Operations
Leslie Burthey
VP of Marketing
Michael Broukhim
Founder, Co-CEO
David Oh
CPO & Head of Growth
Danilo Stern-Sapad
Chief Technology Officer

Launched in the beginning of 2013 and was bootstrapped until mid 2015
We have raised a total of 3.5 million. (Thank you for your contribution,
500Startups)
In 2016, we generated 40+ million in revenue and currently have over
300,000 customers who are active subscribers.
We are also cash-flow positive.
OUR GROWTH

ABOUT ME
• Prior to 2006, was a full-stack developer. Worked on an application that created
websites (Kind of like an ancient Squarespace, or Shopify).
• 2007 – Reunion.com/MyLife.com - Lots of optimizing creatives, landing pages, and
spend on channels like Facebook, Google, and Display networks.
• 2011 – BeachMint. Head of Optimization, then became Head of Customer Acquisition,
and was Head of Product for JewelMint (one of their properties).
• 2014 – Joined FabFitFun

SUSTAINABLE GROWTH

Growth isn’t something you can work on.
Growth isn’t something you can do.
Then what is it?

WHAT IS NEEDED FOR SUSTAINABLE GROWTH
Growth IS the by-product of improvements you make to your
service or product. (Product, Customer Experience)
Growth IS the by-product of you getting better at
understanding what the market (i.e. customers) want, and
better at telling the market that you exist. (Marketing,
Advertising)

WHAT IS NEEDED FOR SUSTAINABLE GROWTH
Growth can only happen when these two things are developed
to the point that the market is willing to pay more money than
it costs to provide the product/service. (Product-Market Fit).

THE REALITY OF STARTUPS
• There will be differences between your initial vision and what you end up with
because of real life. There will be a lot of adjustments and pivots (minor and major)
even before launch. You will probably launch something that you are surprised
actually works.

YOUR IMMEDIATE GOAL
In any case, your immediate goal after launching:
• Find a good product-market fit as fast possible by:
• Improving on your core product/service
• Convincing the Market that they should pay more than what it
costs you to make to provide product/service

TYPICAL STARTUP MISTAKES
• It will cost money, and thus will make it more difficult to find product
market fit if you:
• Hire a lot of people before they are ready to contribute
• Immediately have free lunches every day, get the most expensive equipment
• Get a big ping-pong table, make a lot of startup schwag, throw elaborate launch parties,
etc.
• Spend too much time promoting to the wrong people; i.e prioritizing investor nurturing
over the business.
• Invest in expensive silver bullets

• At FabFitFun focused on improving our COG and LTV for as long as
possible until we had well over 10,000 customers.
• Shiplists were created manually in excel, cross-referencing via
vLookups from many CSVs.
• Upsells, upgrades, cancellations, refunds, were all handled manually.
We simply asked customers to email us for any requests and we
would charge them manually.

• Eventually, we had so much practice doing it by hand, we were able to
provide extremely clear specifications for implementing automation
quickly and accurately.
• By the time we were at 50,000 customers, when it almost became
impossible to do it manually, we had most of the major systems
implemented.

HOW
Is there a system?

OF COURSE!
BUSINESS TEXTBOOKS
SCIENCE
MEDICINE

GROWTH INFRASTRUCTURE
TEST TEST TEST. Companies should strive to implement systems and processes to measure and
observe, make it easier to come up with ideas, and then act decisively. As many times as it takes.
• Instrument (Tracking), Prepare, Gather Information (Analytics), Develop a Plan.
• Meetings, reports, dashboards.
• Analytics, Tag managers, Pixels
• Start at the area of greatest activity and potential opportunity
• Homepage
• Any registration walls, or payment walls (carts)
• Divide and Conquer. Segment.

TYPES OF TESTS
• MAXIMIZING LOCAL MAXIMA
• Singlevariate – Good for precise education on what variables improve performance -
• TRY TO FIND A BIGGER GLOBAL MAXIMA: DON’T ALWAYS TEST TRIVIALLY
• Good for improving yield rapidly, at a greater risk of reduced performance, and reduced knowledge of
which single variable
http://www.smashingmagazine.com/2010/08/26/in-defense-of-a-b-testing/

SOME COMMON THINGS TO TEST IN BETWEEN BIGGER
TESTS
• Different pictures and colors on ads
and landing pages.
• Different style of buttons.
• A different catch-phrase.
• Amount of forms to fill out.

GROWTH & MARKETING HACKS
IT’S GREAT WHILE IT WORKS!

GROWTH HACKING
• Everyone has a different idea of what growth-hacking or a growth-hack constitutes.
• Everyone has a different idea on what a “hack” is. Typically a “hack” is a new
technique few people know about, even experts– therefore the vast majority of
what you read online about growth-hacking is standard optimization.
• Here’s a selection of a few techniques from the past that I consider growth hacks
for its time.
• Immediately after, I will share a pre-VC investment marketing hack you can do right now with
some effort.

AIRBNB
Double posted on Craiglist for
their initial growth.
New for the time? Not really.
Other sites like ZipRecruiter
did similar things in the
beginning. But you can’t really
do that anymore.
LINKEDIN
Seeded all the initial users with
high-placed executives in the tech
sector.
They were one of the first major
companies to have address book
importing as part of their original
flows.
DROPBOX
Not the first to offer incentives for
referrals, but first to do it very well.
Wouldn’t be considered a hack
anymore.

GAINING ATTENTION FOR YOUR IDEA.
A SHORT STORY ABOUT A MARKETING HACK TO CHEAPLY ATTRACT INVESTORS.

I WAS TEACHING A CLASS…
• In late 2012, I was teaching a class about Digital Marketing @ General Assembly
• A student of mine got an idea for an on-demand delivery service.
• He set out to create a very basic MVP. He did a limited launch with a landing page.
He drummed up initial customer interest by telling everyone he could about it,
talking to everyone at startup events, and even putting flyers in dorms and big
buildings, door to door. He did this for weeks until he had some few regular
customers and found a basic product-fit.

FACEBOOK CUSTOM AUDIENCES
• After the class on Facebook advertising, and learning about custom
audiences, he combed through thousands of email addresses he had
gathered and found all the ones that looked to be potential investors.

MARKETING TO VC’S
• He uploaded that email list to Facebook and spent very little money marketing
specifically to investors to become early adopters so he could get the best possible
feedback and simultaneously educate potential venture capitalists.

IT’S EVEN BETTER NOW.
• These days, you don’t even need an email address. I’ve found First Name, last name, and
physical address will result in a really high match rate on Facebook. (over 80%)

I WAS TEACHING A CLASS…
• In any case, within 2 months, I was receiving some calls from potential
investors doing vetting, and eventually his company was able to raise
over 15 million dollars.
• Right now, if you were to pay $10 CPM on Facebook, this means if you
had 1000 people in your list, you have a chance for all of them to see
your ad for $10.

Q/A & DISCUSSION

[U&I SUMMIT 2017] FabFitFun >> David Oh "Scalable Growth"

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[U&I SUMMIT 2017] FabFitFun >> David Oh "Scalable Growth"