Emily Grossman - How to Grow

Transcript

1. Real Talk:
   I’m worried about the discourse on Growth
   

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2. We need to go viral on TikTok.
   You don’t have a Podcast!?
   What’s your Chat GPT strategy?
   We need a Calendly-style invite link.
   Acronyms.
   So. Many. Acronyms.
   Thought pieces about acronyms.
   

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3. When we are desperate, we look for hacks.
   Quick wins.
   Copy-paste solutions.
   

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4. That’s not the growth I know.
   

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5. The growth I know is business strategy.
   It’s focused, planned work.
   

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6. Back to basics.
   

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7. Growth is a financial objective
   Achieved through product, sales,
   and marketing strategies
   What is growth?
   

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8. Growth is concerned with
   two (simple) things:
   As much and quickly as
   possible (or desired)
   Less than you’re making
   Making money Spending money
   1. 2.
   

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9. MAKING MONEY =
   People
   Conversion
   Rate
   Frequency
   Length of
   Time
   Size of
   transaction
   Cut of
   transaction
   (take rate /
   margin)
   

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10. MAKING MONEY =
    People
    Conversion
    Rate
    Frequency
    Length of
    Time
    Size of
    transaction
    Cut of
    transaction
    (take rate /
    margin)
    Acquisition & Monetisation Engagement & Retention Pricing
    

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11. A note on north stars,
    Only Metric That Matters,
    Core Actions…
    Ideal
    product use
    Leading indicator of
    ideal product usage
    Correlated action(s)
    w/ leading indicator
    

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12. Monthly
    Buyers
    4x/Month
    Browsers
    3x searches
    in first week
    A note on north stars,
    Only Metric That Matters,
    Core Actions…
    

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13. “Monthly Buyers” =
    People
    Conversion
    Rate
    Frequency
    Length of
    Time
    Size of
    transaction
    Cut of
    transaction
    (take rate /
    margin)
    Buying ≥ 1x Month
    People
    

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14. If you’re measuring “growth” in a
    way that doesn’t align to how your
    business makes money,
    you’re doing it wrong.
    

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15. Growth is concerned with
    two (simple) things:
    As much and
    As quickly as possible
    Less than you’re making
    Making money Spending money
    1. 2.
    

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16. MAKING PROFIT =
    REVENUES minus COSTS
    

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17. (no sh*t sherlock)
    

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18. Managing upfront costs
    vs. later returns
    Compares projected value
    to cost paid for that value
    Speed of CAC repayment
    Manages cash flow / burn
    LTV:CAC ratio Payback Period
    1. 2.
    How fast you make your money
    back to reinvest
    Good or bad investment?
    

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19. Calculating payback
    CAC
    Payback =
    CAC
    (Monthly) Revenue * Profit Margin %
    *
    * deduct your cost of goods!
    

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20. Setting your payback goals
    Instant 6 months 18+ months
    12 months
    Tried & True Tactics Unknown Tactics
    Less Risk More Risk
    Less Reach Broader Reach
    Monthly revenue &
    margin steady
    Expecting increases to
    monthly rev & margin
    

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21. Set at a company level (blended).
    Set for each channel or tactic.
    Don’t change too much or too drastically.
    

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22. Should you
    prioritise
    Profitability
    or Growth?
    

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23. Recap:
    1. Growth goals are financial
    2. Know your revenue drivers
    3. Manage investments
    

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24. How to Goal
    Reality
    Options
    Will
    

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25. Reality
    

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26. There is no one right way to grow.
    

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27. Commerce
    Model
    …increasing purchase events and
    purchase value
    People & Conversion Rate
    Frequency & Size of Transactions
    Cut of Transactions
    Grows primarily by… Key revenue drivers…
    

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28. Commerce
    Model
    Subscription
    Model
    …increasing purchase events and
    purchase value
    People & Conversion Rate
    Frequency & Size of Transactions
    Cut of Transactions
    …elongating customer lifetime &
    increasing purchase value
    People & Conversion Rate
    Length of Time & Size of Transactions
    Cut of Transactions
    Grows primarily by… Key revenue drivers…
    

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29. Commerce
    Model
    Subscription
    Model
    Marketplace
    Model
    …increasing purchase events and
    purchase value
    People & Conversion Rate
    Frequency & Size of Transactions
    Cut of Transactions
    …elongating customer lifetime &
    increasing purchase value
    People & Conversion Rate
    Length of Time & Size of Transactions
    Cut of Transactions
    …increasing matches of supply
    & demand, to drive transaction
    People & ‘Buy’ Rate
    Frequency & Lifetime
    Size & Cut of Transactions
    People/ Biz & ‘Sell’ Rate
    Frequency & Lifetime
    Grows primarily by… Key revenue drivers…
    

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30. Commerce
    Model
    Subscription
    Model
    Marketplace
    Model
    Advertising
    Model
    …increasing purchase events and
    purchase value
    People & Conversion Rate
    Frequency & Size of Transactions
    Cut of Transactions
    …elongating customer lifetime &
    increasing purchase value
    People & Conversion Rate
    Length of Time & Size of Transactions
    Cut of Transactions
    …increasing matches of supply
    & demand, to drive transaction
    …creating an active & targetable
    audience, to increase ad sales
    People & ‘Buy’ Rate
    Frequency & Lifetime
    Size & Cut of Transactions
    People/ Biz & ‘Sell’ Rate
    People & Ad Conversion
    Frequency & Lifetime
    Businesses & Spend CVR
    Size of Transaction
    Frequency & Lifetime
    Grows primarily by… Key revenue drivers…
    

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31. Businesses think about growth
    differently at different stages
    2
    3
    Build
    Scale
    Evolve
    1
    

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32. BUILD: seed to sapling
    1
    2
    3
    Build
    Scale
    Evolve
    Focused on learning what works:
    - Finding PMF
    - Which business model works best for the
    product and audience
    - The power of your revenue levers
    - The relationship between your spend,
    revenue levers, & profit
    Common pitfalls:
    - Ignoring profitability
    - Jumping to ‘scale’ goals too quickly
    

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33. SCALE: sapling to plant
    1
    3
    Build
    Evolve
    Focused on exploiting what works:
    - Building scale or automation around
    strategies that can move revenue levers
    (and/ or drive cost efficiencies)
    Common pitfalls:
    - No focus
    - Trying to Scale and Evolve at the same time
    2 Scale
    

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34. EVOLVE: planting the garden
    3
    Evolve
    2 Scale
    1 Build Focused on diversifying:
    - Discovering adjacent markets/ audiences,
    products, or business models that play to
    your strengths
    Common pitfalls:
    - Jumping from Build → Evolve (skipping
    scale)
    - Assuming the same revenue levers and
    costs will apply to the new business
    - Divesting too aggressively from the scaling
    business
    

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35. Growth strategy should adjust to suit
    your business model,
    not the other way around.
    

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36. 1. Every company is different
    2. Understand your business model
    3. Understand your company stage
    to set the right goals & strategies
    Recap:
    

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37. Goal
    

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38. Growth is concerned with
    two (simple) things:
    As much and
    As quickly as possible
    Less than you’re making
    Making money Spending money
    1. 2.
    

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39. Two methodologies for
    setting growth goals:
    BOTTOM
    TOP
    

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40. Bottom-Up Goal Setting
    ● Analytical exercise
    ● Forecasting a baseline
    & forecasting growth
    from planned changes
    ● Typically led by
    function owners
    ● Best when input/output
    relationships are known
    

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41. This is my friend Ed.
    Top-Down Goal Setting
    

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42. This is my friend Ed.
    “What do I need to believe?”
    Top-Down Goal Setting
    

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43. 2024 Revenue : 50 Million
    30 Million UK Revenue 20 Million EU Revenue
    Launch in France in
    April
    May - Dec Growth
    Rate same as UK
    Top-Down Goal Setting
    

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44. 2024 Revenue : 50 Million
    30 Million UK Revenue 20 Million EU Revenue
    Launch in France in
    April
    May - Dec Growth
    Rate same as UK 🤨
    Can I believe that a new market
    will instantly drive as much
    revenue as a mature one?
    Top-Down Goal Setting
    

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45. 2024 Revenue : 50 Million
    40 Million UK Revenue 10 Million EU Revenue
    Launch in France by
    March
    9 months EU =
    3 months UK
    Top-Down Goal Setting
    

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46. 2024 Revenue : 50 Million
    40 Million UK Revenue 10 Million EU Revenue
    Launch in France by
    March
    9 months EU =
    3 months UK
    Top-Down Goal Setting
    

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47. Top-down & bottom-up goals
    work together.
    

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48. Options
    

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49. Assess your options
    Strategy x Revenue Driver
    People
    Conversion
    Rate
    Frequency
    Length of
    Time
    Size of
    transaction
    Cut of
    transaction
    (take rate /
    margin)
    Product
    Marketing
    Sales
    

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50. Some of the best growth
    strategies hit on multiple drivers.
    

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51. Remember actions often have reactions
    People
    Conversion
    Rate
    Frequency
    Length of
    Time
    Size of
    transaction
    Cut of
    transaction
    (take rate /
    margin)
    Product
    Marketing
    Sales
    

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52. Will
    

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53. Ruthless filtering.
    

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54. Back to the all the questions floating around
    Should you be on tiktok /
    What’s your ChatGPT strategy /
    Should you do Product Led Sales
    You can answer it now.
    Is it the best way for you drive revenue?
    Could it have an acceptable payback period?
    Does it align to your business model?
    

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55. Growth is a financial objective achieved through
    product, sales, and marketing strategies.
    Break it down into revenue drivers.
    Don’t forget to manage your cash flow.
    Set your goals from the top-down and bottom-up.
    Evaluate best options for your business model & stage.
    Focus.
    Recap:
    

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56. Back to basics.
    

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57. Thank you.
    Let’s talk about growth
    linkedin.com/in/emilygrossman/
    emily.grossman@dojo.tech
    

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58. dojo.careers
    Work with
    us
    

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