One article teaches you to understand growth hacking theory
Growth Hacker origin
Sean Ellis, who entered the workforce in early 1994, was also a salesperson of commercial magazine advertisements. Foreseeing the wave of the Internet, I joined Uproar, a game portal, but quickly realized the limitations of relying on traditional marketing methods: Due to the small number of users, advertising companies were not optimistic about Uproar’s ads; coupled with insufficient funds, even Putting on the cloak of the new Internet era, such as the method of placing banners, it is difficult to effectively drive growth.
Sean Ellis has creatively introduced a new form of advertising-the webmaster integrates a small piece of Uproar game code, and the webmaster can get revenue every time a new Uproar player is attracted.
Later, LogMeIn once again worked on marketing growth and changed the charging model to a freemium model, but the conversion rate was not ideal. After investigating user feedback, I came to a conclusion: "Users do not believe that the service position is free." After brainstorming with the technical and marketing teams and many attempts, I finally decided to add a paid version to the page to purchase the entry, which is a perfect realization The combination of page design, information communication and service options has increased the conversion rate many times.
During the cooperation with Dropbox, it was proposed not to spend more money on paid advertising, but to find other ways to trigger growth through experiments. In-depth analysis of user data, organization of brain storms, and rapid growth experiments based on the conclusions, by the beginning of 2010, Dropbox users will send more than 2.8 million invitations every month, and the number of users has increased from 100,000 at the time of product release to more than 4 million.
The ability of companies to collect, store, analyze, and track large amounts of user data in real time is constantly improving. Even small startups can test new features of products and deliver them to users at extremely low cost, faster speed and higher accuracy. New methods of information or brand building and other new marketing methods have given birth to a practice of driving growth through high-speed, cross-functional experiments. Sean Ellis proposed the concept of "Growth Hacker".
“A Growth Hacker is a person whose true north is growth.”
——Sean Ellis
The Progressive Significance of Growth Hacking
The growth hacking method breaks the traditional "silo" structure within the enterprise, and gathers employees in data analysis, engineering, product management and marketing to form a cross-functional collaborative team, enabling the enterprise to integrate powerful data analysis and technical knowledge Combine with marketing ability efficiently and quickly find more potential means of growth. By quickly testing new ideas and new ideas, and evaluating the results according to planned indicators, we will look for new growth points again to maximize corporate benefits.
Growth Hacking Methodology
In fact, growth is not about new growth, but retention, the compound interest effect of retention.
1. Build an excellent growth team
Break silos to achieve multi-departmental collaboration
At present, there is a bad phenomenon in many companies. The different business departments of the company are usually isolated silos from each other, and rarely communicate, share information or cooperate. This organizational structure has been widely criticized.
To break the status quo of this silo, cross-departmental and cross-functional cooperation, and work together in one direction, effective knowledge sharing is essential for growth. It not only promotes and accelerates the cooperation between product, engineering, data and marketing departments, but also motivates team members to learn more about the perspectives of other members and their work.
Reasonable division of labor
1) Person in charge of growth
The head of growth plays the role of manager, product owner and data scientist in the team.
main duty:
Select the core focus and the team’s work goals and schedule
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Ensure that the team uses metrics suitable for current growth goals to measure and improve results
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Data analysis, product life cycle management capabilities
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Substantial product knowledge of related industries
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Excellent leadership, leading the team to explore forward
2) Product Manager
In most cases, the product manager concurrently assumes the role of part of the person responsible for the growth of the product line.
3) Data analyst
main duty:
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Proficient in data collection, sorting, and dimensional analysis
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Ensure that the experimental design is rigorous and has a statistical basis
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Ability to quickly draw conclusions from data
4) R&D personnel
main duty:
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Realize the team’s new test strategy
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Express your thoughts and suggest growth
5) Marketing operations staff
6）UED
Fast and executable workflow
1) Data analysis and insight collection
2) Idea generation
3) Prioritize trials
4) Test execution
2. The prerequisite for growth is a good product
Many people have a misunderstanding of thinking that "even if the product is bad, growth hackers can push it into flames."
However, real growth must be based on an excellent product, just like building a house, it must have a solid foundation. "Excellent (indispensable) product features/user experience is the foundation for growth."
One of the basic principles of Growth Hacking is to determine whether the product is indispensable, whether it has target users, what is the core value of the product, and what is the core content that the product provides to the market/user.
When the product has not been validated by the market, the user retention rate is not high, and the product is not perfect, excessive user growth will only lead to two results: waste of time and money; negative reputation and loss of a large number of users, and ultimately accelerate the death of the product.
Capture the "surprise joy" of the product
There are 5 classic demand types in the KANO model:
Basic (required) requirements-Must-beQuality/ Basic Quality
Expectation (willing) demand-One-dimensional Quality/ Performance Quality
Exciting (charm) demand—Attractive Quality/ Excitement Quality
Indifferent demand-Indifferent Quality/Neutral Quality
Reverse (reverse) demand-Reverse Quality, you can also translate'Quality' into "quality" or "quality".
The point that meets user expectations and excites users is what I call "aha moment + unexpected joy". In the process of using the product, the user feels that the user really discovers the core value of the product-why the product exists, why they need it and what they can get from it, and what spirit they can get while solving their own needs. / Many aspects of material satisfaction.
The unexpectedly happy aha moment is a necessary element for sustainable growth, because users who have this experience will feel that the product is really awesome and amazing, making people love it and can’t help sharing it with friends, using users to convert from target users Be a core user and become a promoter!
How to achieve the "Aha Moment"
1) Product indispensability research
1. Set the target group of the survey
The target group of the survey is preferably active users rather than "dormant users";
Only use indispensability surveys to determine whether your product already has core values;
2. Measure and evaluate retention rate
Retention rate: the percentage of users who continue to use the product or pay for the product within a certain period of time, which can be evaluated from the aspects of 7-day retention, monthly retention, etc.
2) Fast-paced product testing
3) Dig into the data
4) Walk into the real world of users
5) According to the test situation, evaluate whether to reposition the product
6) Realize "Aha Moment" + "Unexpected Joy"
Once the aha moment is achieved, we need to consider how to make more users experience this moment.
3. Find growth levers
Develop a clear growth strategy
Creating and enabling more users to experience the "aha moment" is the first step to solving the growth problem. Then it is clear what the growth strategy is.
Get to the real North Star indicator
Sort out a "fundamental growth equation". All the key factors related to growth are a variable of the equation, and these factors and variables together drive the growth of the enterprise. The indicators change over time, but don’t deviate from the course.
The dependent variable of the equation can be used as the North Star metric, such as:
Financial management new user transaction volume = target user * registered conversion rate * activation conversion rate * real-name conversion rate * order conversion rate * customer unit price
The new user transaction volume of financial management is the North Star indicator, target user volume, registered conversion rate, activation conversion rate, real-name conversion rate, and order conversion rate. Customer unit price is a key factor in the growth equation. Each key factor can then be broken down into a specific implementation product test.
4. Fast-paced growth experiment
Rely on data to conduct rapid product testing and generate dashboards
When designating fast and executable product tests, a process for tracking test results is required. You can use a dashboard or an overview chart to visually monitor the data changes of key factors after the adjustment of the growth test, and the North Star indicator The data changes.
Based on the rapid test results, adjust and optimize strategies to capture better growth opportunities.
In the face of the future, we will always be children. Constant thinking and constant learning can make us go further.