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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.

Product-Led Alliance

March 16, 2021
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Transcript

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

    model. 3. A “do | don’t do | continue” framework. 4. Optimizing team throughput.
  2. 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)
  3. 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
  4. 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
  5. Comparable Products Prior Experiments Data & Analytics User Research Brainstorming

    Confidence = Data + Relevancy Subject Matter Experts
  6. 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?
  7. 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
  8. 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
  9. 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
  10. 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
  11. 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
  12. 1) User-Centric Ideation 4) Focused Learnings 3) High-Velocity Execution 2)

    Disciplined Prioritization The Growth Experimentation Process
  13. 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
  14. 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