Using Your Growth Model to Drive Smarter High Tempo Testing

•

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In this presentation, Sean Ellis highlights how to use a growth model to inform your high tempo testing efforts. It goes through the key steps for building your growth model including establishing a north star metric, and identifying your "aha moment" and the core benefit that drives retention. Finally he shows how the GrowthHackers team has used a growth model to plan our growth roadmap.

Marketing

Testing with a Growth Model
Using a Growth Model for more
Effective High Tempo Testing

Testing Drives Growth
Twitter boosts testing tempo 20X GH boosts testing tempo 10X

High Tempo Testing Process
Analyze
IdeasPrioritize
Test

Analyze Growth Model First
Analyze
IdeasPrioritize
Test

Establish a North Star Metric
•  Provides lens for measuring sustainable growth
•  Should be correlated with value delivered to customers
•  Examples: Airbnb nights booked, Facebook DAUs

Understand Your Growth Model
Relationship between variables that move your
North Star Metric
•  Acquisitio - Sources and motivation to try
•  Ac - Aha moment
•  - “Must have” experience
•  - User-get-user loops
Acquisition
Activation
Retention
Referral

Build Your Growth Model
?
(Aha Moment)
?
?
(North Star
Metric)
?
Acquisition
Activation
Retention
Referral
Revenue
?
*simpliﬁed
(Core Beneﬁt)

LinkedIn Example Growth Model*
SEO Int’l expansion Invites
(Aha Moment)
Create proﬁle,
4+ connections
Stay connected
with work people
(North Star
Metric)
Proﬁle
connections
Acquisition
Activation
Retention
Referral
Revenue
Invites
*simpliﬁed
(Core Beneﬁt)

What’s Your “Aha Moment”?
•  Elements of an “aha moment”
–  First taste of core beneﬁt
–  Achievable on ﬁrst visit
–  Signiﬁcantly increases likelihood of revisit
•  If NO “aha moment” reached on 1st visit, unlikely
to ever see prospect again

Growth Model for GrowthHackers*
Invites
(invites)
Unique growth
insights from
testing
(North Star
Metric)
Card hops
SlideShareAcquisition
Activation
Retention
Referral
Revenue
Twitter
Sharing a
great idea
(Aha Moment)
*simpliﬁed
(Core Beneﬁt)

Analyze to Find Leverage in Model
(invites)
Unique growth
insights from
testing Card hops
Acquisition
Activation
Retention
ReferralSharing a
great idea
(Aha Moment)
InvitesSlideShare
Twitter
(North Star
Metric)
Revenue
(Core Beneﬁt)

Deeper Understanding of Problem
No ideas added yet

Generate Ideas in Leverage Area
Majority of new ideas should be in leverage area
Activation

Formalize ideas in Experiment Doc
•  Include hypothesis, research, target lever
ICE Score 1 - 10
I - Impact
C - Conﬁdence
E - Ease

Team Members Nominate Ideas
Filter to focus area Sort by ICE score

Analyze Results
Analyze
IdeasPrioritize
Test

Repeat Process
Analyze
IdeasPrioritize
Test

Weekly Growth Meeting Agenda
15 min: KPI review & update focus area
10 min: Review last week’s testing sprint
15 min: Key lessons learned from analyzed tests
15 min: Select next tests via nominations
5 min: Check growth of idea backlog

Manage High Tempo Testing
1) Team Ideation 2) Prioritize Testing 3) Capture Learning
Try GrowthHackers Projects Free
Projects.GrowthHackers.com
GrowthHackers Projects

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Using Your Growth Model to Drive Smarter High Tempo Testing

1. Testing with a Growth Model Using a Growth Model for more Effective High Tempo Testing

2. Testing Drives Growth Twitter boosts testing tempo 20X GH boosts testing tempo 10X

3. High Tempo Testing Process Analyze IdeasPrioritize Test

4. Analyze Growth Model First Analyze IdeasPrioritize Test

5. Establish a North Star Metric •  Provides lens for measuring sustainable growth •  Should be correlated with value delivered to customers •  Examples: Airbnb nights booked, Facebook DAUs

6. Understand Your Growth Model Relationship between variables that move your North Star Metric •  Acquisitio - Sources and motivation to try •  Ac - Aha moment •  - “Must have” experience •  - User-get-user loops Acquisition Activation Retention Referral

7. Build Your Growth Model ? (Aha Moment) ? ? (North Star Metric) ? Acquisition Activation Retention Referral Revenue ? *simpliﬁed (Core Beneﬁt)

8. LinkedIn Example Growth Model* SEO Int’l expansion Invites (Aha Moment) Create profile, 4+ connections Stay connected with work people (North Star Metric) Profile connections Acquisition Activation Retention Referral Revenue Invites *simplified (Core Benefit)

9. What’s Your “Aha Moment”? •  Elements of an “aha moment” –  First taste of core benefit –  Achievable on first visit –  Significantly increases likelihood of revisit •  If NO “aha moment” reached on 1st visit, unlikely to ever see prospect again

10. Growth Model for GrowthHackers* Invites (invites) Unique growth insights from testing (North Star Metric) Card hops SlideShareAcquisition Activation Retention Referral Revenue Twitter Sharing a great idea (Aha Moment) *simpliﬁed (Core Beneﬁt)

11. Analyze to Find Leverage in Model (invites) Unique growth insights from testing Card hops Acquisition Activation Retention ReferralSharing a great idea (Aha Moment) InvitesSlideShare Twitter (North Star Metric) Revenue (Core Beneﬁt)

12. “Activation” Growth Objective

13. Deeper Understanding of Problem No ideas added yet

14. High Tempo Testing Process Analyze IdeasPrioritize Test

15. Generate Ideas in Leverage Area Majority of new ideas should be in leverage area Activation

16. Formalize ideas in Experiment Doc •  Include hypothesis, research, target lever ICE Score 1 - 10 I - Impact C - Conﬁdence E - Ease

17. High Tempo Testing Process Analyze IdeasPrioritize Test

18. Team Members Nominate Ideas Filter to focus area Sort by ICE score

19. Quick Team Nomination Pitches

20. High Tempo Testing Process Analyze IdeasPrioritize Test

21. Launch and Manage Testing

22. Integrate Your Testing Tools

23. Analyze Results Analyze IdeasPrioritize Test

24. Analyze Results

25. Organize Learning

26. Repeat Process Analyze IdeasPrioritize Test

27. Monitor Key Testing Inputs

28. Weekly Growth Meeting Agenda 15 min: KPI review & update focus area 10 min: Review last week’s testing sprint 15 min: Key lessons learned from analyzed tests 15 min: Select next tests via nominations 5 min: Check growth of idea backlog

29. Manage High Tempo Testing 1) Team Ideation 2) Prioritize Testing 3) Capture Learning Try GrowthHackers Projects Free Projects.GrowthHackers.com GrowthHackers Projects

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