"Video Lecture _ Lecture 6 Growth"
In this post, I'm going to discuss tactics for growth by
Alex Schultz. The lecturer has been working in internet marketing/growth now
for 10 years. Based on his experience in taking a good product, helping it grow
faster and hiring a great team Alex Schultz explains beneficial tips and tools
on these topics. Therefore, this post is concerning points such as how to build
a great team, what good retention seems to be, and what tactics are needed for
growth.
First of all, let's
understand why there is or no need for building a great growing team. Previously, we learned the importance of a great
team, however, now we should consider the main steps why to make the team grow.
In the early stages, it is normal for a startup not to have a growing team.
Furthermore, when a team starts to grow some issues may occur. This means that
more people will have to do the same work and it would not be easy to regulate
them and their work. Moreover, in these cases having a lot of people in a team
will cause having more impact rather than sufficient control. Next, you should
know what retention is and how it
should look like. A retention curve is just a graph that reveals how many
people you are retaining/holding, which means how many of them are continuing
to use your product over time. Myth and reality: in a utopian world, every
person who downloaded your mobile app or signed up on your website would
continue using the product forever. However, in reality, some people will
download the app and then never try it or use it for some period of time and
then stop. So how to get an idea of what your own curve looks like. Therefore,
you should look at the percentage of the people actively using your product
after the first month. In a result, if the curve doesn’t level out, concentrate
on product-market fit rather than growth. The main concept is that retention
occurs from having a great idea, product, and product market fit. For example,
Facebook used a retention curve within 90 days of launching to help predict the
one-year value of an advertiser. Moreover, for social media if the first group
of people is not about 80% retained it is unlikely to grow. However, for
E-commerce manages to do well when about 20 to 30% of monthly active users are
preserved. Besides, the people already using your product aren’t the ones to
worry about; you’ll need to focus on the marginal user. Consequently, it is essential to think about
a metric that anyone in your company is anticipating about and driving their
products toward. Any metric that joins with your mission and value is the one
you should go for. Accordingly, you should be able to have several tactics. The primary tactic is
internationalization. Not doing the first tactic may cause some issues
regarding the product. The second tactic is considering observing virality. So,
the initial feature is payload, following is the conversion rate, and third is
frequency. Thirdly, you should remember that everyone has different needs and
interests. Therefore sending emails or doing newsletters are not the best
tactic. In conclusion, I've reviewed the growth of a team, retention, and
tactics which are beneficial in use. Hence, startups should not have growth
teams, but the whole company should be the growth team. Retention is the single
most important thing for growth and retention come from having a great idea and
a great product to strengthen that idea and great product-market fit. After
creating an incredible product optimizing it for the most active users, but
when it comes to driving growth, you should focus on new users.
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