NPS Driven growth or How to grow your startup without spending money on marketing. Slides from the GrowthHackingConference

1. @nilanp
NPS driven growth!
OR!
How to grow without spending a
TON on marketing!
!
Nilan Peiris!
VP Growth TransferWise

2. @nilanp

3. Startups
@nilanp

4. Startups Tequila
@nilanp

5. Helped startups get to
traction

7. Opinion is an outcome of
experience

8. Back to traction
@nilanp

9. Revenue

10. Revenue

11. Revenue

12. Death Zone

13. Revenue

14. How do I get
out of the
death zone ?

15. A typical founder
conversation

16. Anonymised using
characters from the
Wire

17. x

18. GROWTH
Dude - we’re running
outta cash in 6 months

19. GROWTH
Lets go see the Man -
he can give us funding

20. Introducing the Man
@nilanp

21. GROWTH

22. GROWTH
Come back when you
have traction…

23. GROWTH
We need to get
traction, we need to
find customers, you
know what we need ?

24. GROWTH
Marketing

25. GROWTH
Word.
Marketing is what we
need… but marketings
expensive. You know
what we need ?

26. GROWTH
Money… lets go see
the Man.

27. GROWTH

28. How do I get
out of the
death zone ?

29. 4 principles for NPS
driven growth
@nilanp

30. 1. Supply is your biggest scaling lever!
2. Systemically improve your
experience for your customers
through curating supply!
3. Once product is working, focus on
building NPS to drive growth!
4. Once product is growing add
marketing
@nilanp

31. PRINCIPLE 1
Supply is usually your
biggest scaling lever

32. Focus on supply or
customers first ?!

33. OR
Chicken Egg

34. OR
I came first
Chicken Egg

35. SUPPLY CAME FIRST!

36. SUPPLY IS THE
BIGGEST DRIVER OF
YOUR CONVERSION
RATE!
@nilanp

37. e Drivers of
conversion rate

38. Availability of
product
I WANT A T SHIRT!

39. Availability of in
right size / date
I WANT A MEDIUM T
SHIRT!

40. Availability at
price point
ITS GOT TO BE
UNDER £30!

41. MARKETING
BULLSHIT (CRO)

42. Drivers of conversion rate
1. Availability of product!
2. Availability of product
on right date / size!
3. Availability at right price
point!
4.Marketing bullshit (CRO)!

43. Start with one market and
build from there
@nilanp

44. Learn how to systemically
acquire supply!
@nilanp

45. Understand your value to
suppliers!
@nilanp

46. Summary!
1. Acquiring supply solves the
chicken / egg problem!
2. Focus on availability of product
at price point!
3. FIgure out how to scalable
acquire supply and get clear over
time on your value proposition to
suppliers!
4. Focus on growth through
systemically improving your
supply base
@nilanp

47. PRINCIPLE 2!
!
Systemically improve the
experience of your
customers!

48. Focus on single
users
Practical advice
credit: Klinger.io

49. Figure out your
supply curation
metrics
@nilanp

50. CookIt
optimises
recipes to keep
customers
come back for
more

51. Amazon’s!
recommendation
algorithm curates
their supply
optimising for
conversion rate

52. HouseTrip’s
recommendation
algorithm measures
quality of stay

53. Facebook’s
news feed
optimises
for
engagement

54. Uber takes
into account
driver and
passenger
quality when
you hail a cab

55. • Prioritise !

56. Summary
1. Systemically improve
your customer experience
by improving the quality of
supply!
2. Focus on outcome
metrics for your customers!

57. PRINCIPLE 3
Focus on NPS and
your business will
grow

58. Would you recommend us to
your friends?
Detractors Neutral Promoters
1 2 3 4 5 6 7 8 9 10

59. Would you recommend us to
your friends?
Detractors Neutral Promoters
1 2 3 4 5 6 7 8 9 10
Promoters - Detractors
Total
= NPS

65. If promoters >
detractors you WILL
grow

66. N.B. This is fucking
hard.

67. It works ! !
(But barely)

68. It works with!
no significant
issues !
It works ! !
(But barely)

69. It works. Wow that
was slick
It works with!
no significant
issues !
It works ! !
(But barely)

70. You’ve just blown
my socks off that
was fucking
incredible
It works. Wow that
was slick
It works with!
no significant
issues !
It works ! !
(But barely)

71. ONLY focus on NPS
once the product is
working

72. Every app
on your
phone has
an insanely
high NPS

73. What drives
recommendation ?

74. Rational Emotional

75. Rational! Emotional
• Meeting &
exceeding
expectations!
• Product
features
• Narrative!
• Reason for
sharing!
!
!

78. You can’t copy
that !

79. ONLY focus on NPS
once the product is
working

80. Summary!
1. Focus on NPS and you will grow!
2. Understand the drivers of NPS
and align your product and
marketing organisation behind
this

81. !
!
!
!
PRINCIPLE 4
Once product is
growing add
marketing

82. !
!
!
!
PRINCIPLE 4
Once unit economics
are strong explore
marketing

83. 1. Performance
marketing!
2. Viral growth!
3. Inbound
marketing!

84. 1. Performance
Money in Money
marketing!
out

85. Money in < Money out

86. When to focus on
performance
marketing ?
Practical advice
1. If your unit economics are
better than anyone else in
the industry
2. You can target relevant
traffic
@nilanp

87. Viral growth!

88. Viral growth =!
Word of Mouth
Referral programs!
Crazy social sharing

89. Referral programs =
tracked Word of
Mouth

90. Focus!
!
Give away value!
NOT money!

91. Focus!
!
=

94. What amplifies viral
growth rate ?

95. Frequency of use!
Relevance!
Shareability

96. Pre-requisites
Practical advice
1. Have a great product
2. Have your first 1000
customers
3. Customers are part of high
trust networks with other
target customers
@nilanp

97. Inbound marketing

98. Build acquisition into
your app

103. NPS driven growth!
4 principles

104. 1. Supply is your biggest scaling lever!
2. Systemically improve your
experience for your customers
through curating supply!
3. Once product is working, focus on
building NPS to drive growth!
4. Once product is growing add
marketing
@nilanp

105. @nilanp