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Measurements & Frameworks for Growth Optimization

Measurements & Frameworks for Growth Optimization

Speaking at the Product-Led Festival, Michael Berliner, Masterclass, explained how to create a growth model that helps you understand how your metrics span across different growth channels.

He covers:

- How to zero-in and focus on your goal.
- Creating a growth model that helps you understand how your metrics span across different growth channels.
- The do/don't do/continue framework.
- Maximising efficiency and effectiveness towards goals.

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Product-Led Alliance

March 16, 2021
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Transcript

  1. Measurements & frameworks for growth optimization

  2. Agenda 1. Focusing on the goal. 2. Creating a growth

    model. 3. A “do | don’t do | continue” framework. 4. Optimizing team throughput.
  3. What’s the antidote to these 3 failure reasons? Requires Focus

    *Data from CB Insights Study
  4. The goal = $$$

  5. Creating a growth model

  6. How to prioritize across growth levers? Partnerships Viral Monetization New

    Markets Paid Content Retention (SEO, Blog, Community) (Referrals, Incentives, Sharing Mechanisms) (FB Ads, Adwords, Retargeting) (First Experience, Renewal, Engagement) (International, Domestic, New Audiences) (Conversion, Pricing, Packaging) (Revenue Share, Distribution)
  7. Common growth metrics Paid Spend Cost / Click Viral Referred

    Visitors / Acquired Spend / User Referral Content SEO Visitors Partnerships Partner Referred Visitors Spend / Partner Referral Visitors Spend / Visitor Conversion Purchases / Visitor Average Order Value Acquired Revenue / Visitor Retention Retention Rate Purchases / Month Retained Revenue / Acquired CAC LTV Revenue
  8. Common growth metrics CAC LTV Revenue Each $1 less spent

    per acquired = X% Each $1 more earned per acquired = X% Each additional… ...Visitor ...Acquired ...Retained = +$X Healthy Growth
  9. Applying a “don’t do” framework

  10. The growth optimization process Ideation Prioritization Execution Learnings

  11. Confidence Impact Effort

  12. Confidence Impact Effort = Estimated effect on target metric =

    Estimated person-weeks of time
  13. Comparable Products Prior Experiments Data & Analytics User Research Brainstorming

    Confidence = Data + Relevancy Subject Matter Experts
  14. None
  15. How conversion works ( Perceived Value ) x Excitement (

    Perceived Costs ) x Context >
  16. Questions we ask 1. How would you describe the product

    to a friend or family member? 2. What was the most exciting part of your experience? 3. What do you like about the page? Dislike? Want? 4. At what point did you get the information you needed to make a decision? 5. Which of these is most important for deciding whether to buy? 6. Which of these, if any, would be your hesitation with buying? 7. If it cost $X, would you buy it? Why or why not?
  17. We want to maximize the perceived value

  18. And get them excited

  19. While reducing their perceived costs

  20. And helping them understand it’s feasible right now

  21. Process cheat-sheet Objective Tactics Hypothesis Ideation Comparables User Surveys On-Site

    Polls Prioritization I.C.E. Scoring Hypothesis “Themes” Execution Self-Contained Pod “1 Review” Standards Experimentation Architecture Streamlined Processes Learnings Standardized Segmentation Secondary Metrics Winning/Losing “Themes” Learning from Losers
  22. Confidence Impact Effort ( ) Confidence x = Value Score

  23. Double Down 80/20 Don’t Do

  24. Optimizing team throughput

  25. Throughput funnel Velocity Win-rate Success Rate Avg. Impact

  26. Throughput metric curves Test Design, Testing Medium, Pod Structure, Processes

    & Expectations Backlog Size & Quality, Winning Themes Advanced Data Analysis, Big Swings Testing Velocity Test Win-Rate Avg. Lift / Win Improve With: Eventually you calibrate these metrics by lever to more easily estimate a lever’s revenue potential Metric Time
  27. Voilà! A Hypothesis Driven Growth Strategy to Maximize Revenue Optimize

    backlog for maximum revenue ROI per time invested. Optimize resources towards highest revenue ROI levers
  28. Thank You www.MikeCrunch.com www.linkedin/in/berlinermichael

  29. Appendix / Philosophies

  30. Confidence Impact Effort

  31. Impact Effort ( ) Confidence x = Value Score

  32. Double Down 80/20 Don’t Do

  33. Breaking growth levers down into initiatives Monetization Content Paid Viral

    Retention
  34. There’s no “silver bullet” Safe Moderate Risky

  35. Paid (FB Ads, Adwords, Retargeting) Partnerships New Markets Retention (First

    Experience, Renewal, Engagement) (International, Domestic, New Audiences) (Revenue Share, Distribution) Viral (Referrals, Incentives, Sharing Mechanisms) Monetization Content (SEO, Blog, Community) (Conversion, Pricing, Packaging) Ideation
  36. Ideation Prioritization Execution Learnings Comparable Products Subject Matter Experts User

    Research Data Analysis Prior Experiments Brainstorming
  37. Size opportunity using quantitative user polls Evaluate solution execution complexity

    Comparable Products Subject Matter Experts User Research Data Analysis Prior Experiments Brainstorming RESEARCH SOURCES User Problems Solution Hypotheses more confidence less confidence
  38. 1) User-Centric Ideation 4) Focused Learnings 3) High-Velocity Execution 2)

    Disciplined Prioritization The Growth Experimentation Process
  39. Paid Spend Cost / Click Viral Referred Visitors / Acquired

    Spend / User Referral Content SEO Visitors Partnerships Partner Referred Visitors Spend / Partner Referral Visitors Spend / Visitor Conversion Purchases / Visitor Average Order Value Acquired Revenue / Visitor Retention Retention Rate Purchases / Month Retained Revenue / Acquired CAC LTV Revenue
  40. Each $1 more earned per acquired = X% CAC LTV

    Revenue Each $1 less spent per acquired = X% Each additional… ...Visitor ...Acquired ...Retained = +$X Healthy Growth
  41. We don’t know what we don’t know

  42. Acquisition Channel Mix Healthy Unhealthy

  43. Speed over completeness 1 Learning @70% 1 Learning @70% 1

    Learning @100% > 1 Learning @70%
  44. Don’t reinvent the wheel

  45. Practice ruthless prioritization Double Down 80/20 Don’t Do