Growth hacking. The future of marketing in Tech

GROWTH HACKINGTHE FUTURE OF MARKETING IN TECHby Victoria Rusnac@VictoriaRusnac

Marketing strategy

Brand strategy Product marketing

P&L management

Customer MarketingGrowth Marketing

Digital Marketing

Executive MBA

MARKETING IN FMCG, TELCO AND TECH

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§ Why growth hacking emerged?§ Growth hacking explained§ Growth hacking epic examples§ Growth hacking tools§ Q&A

AGENDA

GROWTH HACKING

WHY GROWTH HACKING EMERGED?

DIGITAL AND MOBILE HAVE DISRUPTED THE MARKETS

DISRUPTIVE TECHNOLOGIES REQUIRE A

BEHAVIOURAL CHANGE

SOCIAL MEDIA RESHAPED THE CUSTOMER JOURNEY

SOCIAL MEDIA & UGC IMPACT PURCHASE BEHAVIOR

GROWTH HACKING EXPLAINED

MARKETING IN TECH… GROWTH HACKING

&PSYCHOLOGY

THE TANDEM OF MARKETING AND DATA

Growth hacking is all about• developing creative strategies and unconventional tactics • to dramatically increase users as• cheaply as possible.

GROWTH HACKING

MARKETING + DATA + PRODUCT

Growth Hacker is a person whose true north is growth, combining engineering,

designing and marketing simultaneously in order to find optimal product-market fit. Sean Ellis, DropBox founder.

How can you design a product experience that—just by using it—generates marketing visibility?

A mindset which focuses marketing activities on increasing the scale and

profitability of a business through testing and optimisation techniques for improving the value of audience touchpoints across the customer lifecycle.

PERSPECTIVES ON GROWTH HACKING

PRODUCT MARKET FIT

THE ONLY FUNNEL I BELIEVE IN

LEAN MARKETING FUNNEL AARRR

Startup Metrics for Pirates Dave McClure

ACQUISITION – People come to your homepage or other landing pages from various channels, from press to blogs to search engine traffic to word of mouth.

ACTIVATION – People have a happy first experience while on your site, usually culminating in some action like the creation of an account or giving you their email address for more information.

RETENTION – People become active users of your product, coming back to use it multiple times and staying engaged each time.

REFERRAL – People share your product with their friends, who then have to be activated, retained, etc.

REVENUE – You monetize people using your product, either through advertising, subscriptions, lead generation or business development.

AARRR OR CUSTOMER LIFECYCLE MARKETING

AARRR IN ACTIONHIGH VOLUME #HIGH CONVERSION %LOW COST €

THE CONSUMER DECISION JOURNEY BY MCKINSEY

§Google AdWords campaigns §Display advertising§Social Media campaign§ Telesales scripts§Email campaigns § Landing pages§Customer Journeys

HYPOTHESIS TESTING IS EASY AND CHEAP TO RUN

A/B TESTING

GROWTH HACKING EPIC EXAMPLES

P.S.: I love you. Get your free email at Hotmail.

§ Automated integration to cross-post accommodation listings on Craigslist§ Free professional photos§ Network effect

AIRBNB: PRODUCT & UX HACKS

GROWTH HACKING TOOLS

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GROWTH HACKING TOOLKIT

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1) PRODUCT MARKETING

2) PARTNERSHIP MARKETING

3) RETENTION

4) VIRALITY & REFERRAL

TOOLS WE WILL COVER

PRODUCT MARKETING

HUMANS HAVE SHORTER ATTENTION SPAN THAN GOLDFISH

FEATURES CUSTOMER BENEFITS

QUANTIFIABLECUSTOMER BENEFITS

PRODUCT MARKETING EXPLAINED

A feature is a factual description of how your product works. The features are the functioning attributes of your product. The features also provide the ‘reasons to believe’.

A benefit is what your product does for the customer. The ways that the features make your customer’s life better by increasing pleasure or decreasing pain.

FEATURES & BENEFITS

FEATURES

BENEFITS

VIRTUAL BANK N26 HAS FEATURES FOR YOU

FUNCTIONALITY: send money at the market rateBENEFIT: cheaper money transfer QUANTIFIABLE BENEFIT: up to 8x cheaper. Save $72.

TRANSFERWISE: QUANTIFIABLE CUSTOMER BENEFITS

MESSAGING IN ALL TOUCHPOINTS

PARTNERSHIP MARKETING

Thomas Cook introduces interest-free direct debit paymentsA new method of spreading the cost of paying for holidays by the use of direct debit is being introduced by Thomas Cook.The monthly payments by direct debit scheme is linked to a low deposit as Cook becomes one of the first travel companies to offer an interest-free payment plan with zero fees for its customers.Consumers booking online select the date of the month that the direct debit is taken and can match the timing of payment with convenient dates, such as payday.Setting up the direct debit is integrated as part of the checkout process when booking on Thomascook.com.Cook has teamed up with direct debit provider GoCardless to offer the service.

PARTNERSHIP MARKETING IS A BIG OPPORTUNITY

ACCOUNTANTS partners and selling channel for financial management software

BENEFITS§ Special free software § Free training§ Promotion of their firm§ Marketing funds

PARTNERSHIP MARKETING FOR FINANCIAL SOFTWARE

RETENTION

GETTING USERS TO CONTINUE USING THE PRODUCT OR SERVICE

Also known as:§Engagement§Repeat purchases§Advocacy

HOW DO YOU KEEP RETENTION UP?

§Amazing product experience§Amazing service§Email marketing

§ 3, 7 and 30 days First Time Use§ Customised and automated emails

§Retargeting§Content marketing§Building community §Gamification§Social Media

TO ACHIEVE ADVOCACY YOUR PRODUCT NEEDS TO BE AN ORDER OF MAGNITUDE

BETTER THAN THE COMPETITOR’S

NPS SHOWS CUSTOMER ADVOCACY

Net Promoter Score is a customer loyalty metric based on a ‘likely to recommend’ survey.

Promoters: Enthusiasts who fuel growthPassives: Satisfied but vulnerable to competitorsDetractors: Unhappy, impede growth

In most industries, NPS explained roughly 20% to 60% of the variation in organic growth rates among competitors.

On average, an industry’s Net Promoter leader outgrew its competitors by a factor greater than two times.

NPS CORRELATES WITH ORGANIC GROWTH

Bain study, 2015

THE WINNERS TAKE ALL

CUSTOMER IS KING…. VOCAL KING!First positions in organic of azimoreview.comVideo was viewed 38,500 times

FULL TRANSPARENCY

VIRALITY & REFERRAL

Designing the user experience so that telling and even inviting others to join the service is natural VIRALITY, PEER RECOMMENDATIONbeneficial REFERRAL

NETWORK EFFECTAligned motivation occurs when new users see added value if there were more users in the system.

VIRALITY AND REFERRAL: IS THERE A DIFFERENCE?

§Make it easy to spread your product§Worth and conducive to spreading §Will customer spend their social capital

recommending your product?§Make it seem like it is not a favor§Refer a friend = help your friend discover

VIRALITY CAN BE ENGINEERED

REVOLUT: FINTECH EXAMPLE OF VIRALITY

WOM and eWOM“INVITE FRIENDS” IN APPSEND & RECEIVE MONEY

DOLAR SHAVE CLUB: LAUNCH VIDEO GOT TRACTION

§ Launch video in March 2012, starring founder Michael Dubinwent viral

§ The website crashed, and the blades sold out in six hours.

§ The video has been viewed about 23 million.

§ In July, 2016 Dollar Shave Club hit the jackpot when Unilever agreed to buy it for $1 billion.

https://www.youtube.com/watch?v=ZUG9qYTJMsI

TRANSFERWISE: REFERRAL BONUS

Transfer for free when you refer a friend!- Every friend that you invite to

TransferWise will get +£15 in fee credit - And for every invited friend who makes a

transfer over £200 (or equivalent in another supported currency) on TransferWise, you’ll also get +£15 in transfer credit

THANK YOUVictoria Rusnac

@VictoriaRusnac