Now that we’ve define a clear Value Proposition, and you know exactly who are your Personas, it’s time to start preparing the ground base rules of what Growth Hacking is and to create scalable processes.
Remember the Growth Hacking definition: “Experience-Driven Marketing”
Experiences are always happening and we can’t lose track of them, because those experiences will drive our Marketing Efforts!
Makes sense? Of course, that’s why you’re a future Growth Hacker.
What does it take for companies to implement a Growth Process that will help them to have faster learning phases?
- Find your Product/Market Fit: know if your product or service is right for that specific market
- Define a Clear Objective: finding their North Start Metric that will lead to the final destination
- High-tempo Tests: where ideas are tested constantly and allows companies to iterate or move to the right direction faster without spending to much time and money (MVP concept)
- Scalable Processes: where processes are implemented to that specific process, so it can be fully automate, or done by anyone when required
- Small Wins, Compounded: by working on their MVP to their NSM, each bit of learning will lead to better performances, better ideas and a compound growth effect, ultimately turning small improvements into landslide competitive advantages
In order to be sucessfull on the last 4 points, you will always need to understand how is your Product/Market Fit.
Based on the Growth Pyramid by Sean Ellis, PMF is the baseline by which any business can be led to a Growth Mindset.
PMF is the leading indicator that will tell you if you have a product that the market wants.
How can you know if you have achieved this model or if you’re going to?
The most common way of knowing is by doing user or customer surveys where if at least 40% of your existing customers indicate that they will be “disappoint” or “missing” the product or service, you are on the right path.
This will always be qualitative, and it can be geared towards your gut feeling, so it is utterly important that you try to be as impartial as possible.
If you are still starting to launch a product or service, then this questions are not for you. You’ll need to do a market research and understand how important your product or service will be and if you’ll have enough adherence on that product. (This should also be done with users surveys but it will be harder to measure).
This can be done in several ways, but the easiest is with a survey where you question 3 things:
- From 0 to 10 how important is our product or service?
- From 0 to 10 how would you rate the use that you give to our product in your day-to-day?
- From 0 to 10 how hard it is to use our product?
If your average on questions 1 and 2 is over 4 then you have achieved part of the PMF (higher the number, better the outcome)
If at question 3 your average is above 4 then you must consider making the product or service easier to use to achieve a better average in questions 1 and 2. This is baseline, and you can go further down this road and make it even more useful and detailed. At GHS this is the 3 questions that we use to start this process and that have been working better up-to-now.
Do you want to get our Survey Template? Sign Up for Our Courses here.
NORTH START METRIC
After looking what your PMF, it’s time to find out what is your North Star Metric.
Your North Star Metric can be the same as the Main Key Performance Indicator (KPI) that you use, or your main Objective.
We like to call it North Star Metric because it is your core value that will lead your business.
If you are Nespresso, your NSM is going to be “number of coffees sold”, if you are “Clash Royale” you will be looking at “number of downloads” per time frame that you define.
This is extremely important because all growth activity will be geared towards this metric.
This will make everyone on the same page and thinking for the same objective.
Then you can create several mini KPIs that each team can work, just like the OKR (Objectives and Key Results) Framework.
At this moment we will look only at the NSM because we need to focus on only 1 objective, growing!
If you want to know more about OKRs and explore further, you can do it at this blog post from Google
So we’ve defined that we have achieved or going into a PMF, we know our NSM, so it’s time to start looking at our Growth Process!
With this framework, you’ll be preparing your Business to a high-tempo process that will help you to test your assumptions quickly so you can move the needle towards, your north!
Remember that at this phase everything that we will gather are just assumptions looking to build to our NSM
The Growth Process used is broken down into a repeatable and scalable four-step process:
- Analyze — data analysis and insight gathering
- Ideate — idea generation
- Prioritize — experiment prioritization
- Test — running the experiments
Go back to 1 and REPEAT
Let’s look further down each step:
1. Analyze Data and Insights
Insights are the most important thing that you need to start this process. They will be your guiding lights towards your goal, they are based on your assumptions or based on your business data.
At this moment, all we have are ASSUMPTIONS, nothing else. Now we will gather and filter them to so we can start to Ideate and Priorize.
We’ve created a USP and Personas because they are the most important thing for this first step of analysis. This is where they will be the most useful and used!
Here you would like to filter your audiences into 2 categories:
Engaged Customers (Hot Customers)
Inactive Customers (Cold Customers)
Ideas will be the baseline of your assumptions. Here you will list and write any idea that you would like to Test.
These are the leading input to achieve growth. If you don’t have any ideas you won’t know where to start and to impact your audiences.
This is why it is important to define your strategy before starting to growth hack. Having a clear idea of what your Personas are, and if you know what is your NSM, if you present this to anyone, everyone will be on the same page, and all ideas that will be tought off will be for the same objective.
At this stage any idea is valuable enough to be written, since we will be using a P.I.E.S framework to filter them.
Don’t think that any idea is stupid or that it is not worth it. Everything counts until we test it or prove that is not worth to test.
There isn’t a perfec tnumber of ideas to start or finish, but if you aim to have at least 10 ideas, this would be great!
After gathering a bunch of ideas, you need to decide which are the most important ones and which won’t make the final cut.
This is where you’ll need to score and prioritize all of the ideas that you gathered before.
Here is where P.I.E.S Framework gets into action. We’ll get more into detail in the next post.
We know there are several systems that you can use. The guys at Growth Tribe created their own G.R.O.W.S. Process, and Sean Ellis created I.C.E. and P.I.E.S was created by Wider Funnel.
Here at Growth Hacking School, we consider that every one of these frameworks are valuable and in the end, any of them will lead to the same outcome.
The main idea is to have a easy and quick system that will let you score your ideas leading to a rapidly prioritization that will help you to test your ideas in an effective way.
What is the most important thing here is that you need at least 2 to 3 persons to avoid biased results. The more the merrier, the outcome will be more accurate.
This is the last and final step before going again to the First Step of the Growth Process, building your first Growth Loop Process.
Testing is where you will start to figure out if your pieces will all fall into place or if your tower will collapse and you will Fail!
Failing is always good, because after failure we tend to try to avoid repeating the same mistakes, thus leading to new learnings.
Each test or experiment should have a start and an end date, this is really important!
The starting date will help you to define when you need to have everything ready to start testing and the end date is when you will start analyzing the data.
At this step most people tend to give inaccurate starting dates because most of them don’t know what are the required Tools to build their tests.
Testing is not just activating a button and wait for the final outcome.
Sometimes we need to create A/B tests in our Landing Pages or update our Email Marketing Campaigns or even just change the color of a button.
Other times, we need to create a new setup of new events that will take some time.
This is why it’s so important to fully understand the importance of the PIES framework and try to give an accurate score to each step.
Testing should be done quick, and not take long. Remember that we want to figure out what will drive Growth towards our NSM and not develop a Growth Loop with this test (yet!).
The baseline values for testing is between 1 to 3 weeks.
To prepare everything for testing you should not take more than 1 week setting everything up. If a test set up will take longer, you need to fully consider if at this time you have the resources (Time, money, man power) to spend on this test!
At GHS, our experience tells us that most tests can be done in 2 weeks tops.
When your test is starting, normally you should warn your company so everyone will be on the same page and understand why things are changing.
Afterwards, you should analyze your test and measure the final outcome to see if it reached the final goal. This is when you are going to go back to step number 1, Analyze!
It’s really important to, at the end of each Testing phase, gather the team around, or at least write the ideas on the final outcome.
This Growth Process is an ongoing loop and having a clear thought on why the test worked out or not is important.
Also by having a Backlog of the ideas that have been tested is really important.
Again, never assume that you are 100% right or wrong, ideate, select, test and analyze!
Data Levels All Arguments!
Next, let’s talk about the PIES Framework in a bit more detail?