Hacking Growth: How Today's Fastest-Growing Companies Drive Breakout Success by Morgan Brown & Sean Ellis

Author:Morgan Brown & Sean Ellis [Brown, Morgan]
Language: eng
Format: azw3
Publisher: Ebury Publishing
Published: 2017-04-27T04:00:00+00:00

To illustrate how this method can work, let’s pick back up with the team working on the grocery store mobile app you read about in previous chapters, and see how they used it to both prioritize and optimize their first round of channel experiments.

You might remember that to drive initial adoption, the grocery chain, which has deep pockets, ran an aggressive radio and print ad campaign that generated an impressive 100,000 initial app downloads. But because not all that many of those people were buying much with the app, the growth team pivoted to focus on generating more revenue per user rather than on attracting more potential shoppers. Let’s say that they’ve now succeeded in improving the average revenue brought in per active app user, so they’re now turning their attention back to acquiring more users, and the mission (as it always should be) is to find more profitable channels.

First, they do another analysis of their user data. They’ve been monitoring the data continuously, of course, keeping a close eye on the metrics that matter most, but whenever a team shifts focus to a new growth lever, it’s important to dive into the data with fresh eyes looking for insights specific to their new mission. Recall that they had discovered earlier that a large number of their best customers were coming from the grocer’s main website, and that’s still true. So they decide that they will focus on organic ways of leveraging the website more powerfully as one key channel, and will also experiment with new channels to help them cast their net wider and bring in more users who aren’t regular visitors to the website, as was done at the initial launch. Facebook and Google advertising are obvious possibilities, so they conduct research to see how much of their existing user base is on those platforms, and how many similar types of users can be reached through advertising. They find that most of their users are quite active on both, so they dig deeper, scouring industry reports for benchmark data about where exactly their potential shoppers are spending time online and what other competitors have spent on Google and Facebook ad campaigns of what kinds, and what their relative success has been.

Armed with knowledge about their users’ online behavior, they hypothesize that Google AdWords might not be such a great opportunity after all because people aren’t searching on the wider Web for grocery items; they’re searching on grocery retailers’ websites. Facebook, on the other hand, allows them to target especially well by demographic groups and their interests, and they’ve got lots of demographic data about their customers, so they decide to put Facebook ads on their prioritization grid.

The team decides to also do some additional market research, running some feedback surveys on the company’s main website and on the app, and also interviewing some existing customers. From those shoppers who visit the website, they want to learn whether they downloaded the app and if not, what held them back; for the existing app users they ask what would make them likely to refer the app to their friends.

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