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The emoji is becoming the fastest growing language across the world. While testing is still in initial stages, there is increasingly more evidence that using these little colourful pictures in your marketing and communications will result in significant increases to your online traffic, which is a great passage to overall business growth.
To better understand this, we must first appreciate the driving nature behind emojis, and just how they are engaged as an evolving language in international society. With this understanding, we can draw on reasoning and method for the use of this little caricature in an array of marketing and communication techniques.
The key to unlocking the benefits of emoji use is to admit, even if it makes you cringe, that this IS a language. In fact, some are calling it THE fastest growing international language. As language is communication, and good business relies on communication, there is probably enough evidence right there to build emoji use into your marketing and communication strategy into the future.
Though what is it that makes emojis such a key growth area? The primary reason, without sounding cliché, is that it really does SPEAK to us. While the science behind emojis is still emerging, there is a building forum of evidence that shows that emoji tells us things that words cannot. Also, in a busy world of limited time and patience, this little picture can sum up a whole story with the strategic click of a button (take for example tennis star Andy Murray, who described his whole wedding day using only emojis).
Context is a key factor in understanding communication, and in an online world where context of words is easily lost, emojis allow us to hit the context nail on the head, all in one little picture. That being said, we must also beware of context in emoji use, there is still a highly varying perception of many emoji or emoticon meanings, as well as technical issues between platforms and providers.
Finally, one of the key, and most interesting recent findings, is that viewing emojis or emoticons can actually impact our mood when we see them. They can activate certain parts of the brain that not only create a change in feelings, but cause us to actually mimic the image we are viewing.
Emotional interaction is a strong form of real communication, and emojis allow us to clearly express our feelings and engage with people in a short and sincere way. With such a focus on communication and real interaction as successful components of business, there are strong lines we can draw between this science and how we then use emojis to create growth.
So how do we bring this background science across into our everyday, targeted communication mechanisms? While testing of emoji use is still in its relative infancy, a good place to begin is an already relatively well-tested subject, being emoji use in email communication. Email subjects are a great example, as they require a short burst of attractive information, enough to force the recipient to choose, open, and then read the content you have sent. So far, a majority of the testing on this topic is telling us to get cracking on emoji use in emails.
There are some key points on emoji use in online communications, being:
Interestingly, another recent study found that the use of emoji was considered positive and well-accepted for both formal and social emails, however perhaps it is still worth erring on the side of caution with more formal audiences for now.
While on this topic, it is worthwhile considering potential issues relating to mediums such as blog headings, as such use may actually decrease your traffic, due to technical platform confusion.
While it may seem like a no-brainer, the acceptance of emoji use is not as cut and dry as one may believe. Once considered the domain of teenage girls, recent testing has completely blown this idea out of the water, with emoji user demographics actually spread quite evenly, although the female gender still shows higher rates of use. Some tests have even found acceptance rates higher in the over-45 age range.
So if this is the case, then how do we identify the right or wrong audience? Well, we can run our own small initial tests, splitting use and non-use to different recipients. Or we can identify the attractiveness of emoji use as explored above, and weigh the relevance of it in relation to our content. The do-not-bombard rule is still applicable here, remain strategic and understand the meaning of the emoji and the audience that you have identified.
Also, pay high attention to the type of emoji you use, and just how it will be perceived and accepted by different audiences. There is no shortage of emoji perception testing across all demographics to assist you.
An Emerging Emoji Future
As the language of emoji grows, so to does its advance into the wider world of marketing and advertising. The use of emoji in advertising products online continues to expand, probably down to the fact that they are simply effective. Click rates and attention time significantly increase when emojis are in play.
McDonalds, for example, recently undertook a campaign using emojis as their only form of communication. In reverse, Twitter is opening the door to advertisers targeting customers based on the user’s emoji use (think of Dominos targeting Twitter users who often tweet the pizza emoticon). On top of this, it’s key to remember the ‘identifying’ nature of emoji. Google plan to release new emoji that focus on gender equality, portraying women in a variety of roles and situations.
Finally, when considering the idea of a real global market, remember that emoji are a truly becoming an international language. They not only allow us to communicate clearly and efficiently, but open up to interaction with the entire global market. They break down language and cultural barriers, and may well become a transformative feature of expanding your business into a truly global market.
Many people wonder what path I took to get into growth. I can’t say it was traditional. There was no marketing, there was no programming, yet here we are.
The journey started when I studied journalism at university ten years ago, and decided to take a rebellious approach in my final year. I explored things like propaganda, street media and internet channels to bring to life a manufactured female identity which I marketed as a real person.
From the success of that campaign, I began messing with Israeli tech companies, leveraging my licence to challenge tradition to help differentiate their approach to market, and it grew from there until it became a reality far greater than my full time profession.
The university I attended recently ran an article about my journey, and you can read it in full, here.
I sat down with a psychologist friend of mine the other day, and after all the pleasantries were exchanged, we got to talking about product growth and human behavior. While I’m sure most psychologists are used to putting people on the spot, it was an interesting sight to see how uncomfortable I made him with the question I posed.
I asked something along the lines of: “Michael (name changed to protect his professional integrity), you deal with people and data sets all the time, and you know all about psychological profiling and making educated assumptions in order to help people overcome compulsions, right?”
“Yes,” he nervously replied.
That was my green light. “What would you need to do to turn the tables? To use profiling and data-driven stereotyping to amplify a compulsion?”
He paused, conflicted, partially by the thought of flipping his power for doing good on its head and partially by the surprise of such a request.
What followed was a discussion of the process one could use to profile, generalize, and deconstruct marketers’ tendencies to create more impulsive calls-to-action.
When working with a startup, getting from zero users to something a lot more tangible can be hard. There’s a specific switching point between the moment a product launches in stealth or private beta, to the point at which it can safely call itself ready for the real world.
Early adopters play a large part in this equation, for without them, a product would never get off the ground. Getting these early adopters however, can be a brutal wake-up call, where effort applied can sometimes lead you to a less-than-amazing result.
Still, as founders and growth technicians, we can never let these sub-optimal wins detract from the end goal. Growth or nothing. Live or die.
[Tweet “Growth or nothing. Live or die. @TomerGarzberg http://j.mp/shoulderofgiants”]
Take INDX.guru for example, the product I help grow, which provides a free solution to the startling fact: 98% of stock market investors are underinformed when they make a trade.
Their market is niche, highly critical, and savvy.
This is a guide on how I Frankensteined an approach that blended early learnings of who the users are, where they get their information from, and called out established ‘competitors’ to help seal the deal.
If you’re investing in the stock market, knowledge is everything. Without it, you’re trading blind. Shockingly, that’s the way most are doing it. It’s not because of the lack of opportunity to be well-informed, it’s just that you either need a lot of time, or a lot of money.
This traditional pathway to information is broken. Keeping up with price movements, company information, third-party information that could influence market movements, social data and alternative analyses means you have to sit there, with 10 browser windows open. It’s time-consuming, and clunky, and requires plenty of brain power.
The alternative is to spend up to US 28,000 for tools like Bloomberg Monitor. While Bloomberg Monitor is an exceptional tool, the price tag makes it far out of reach for the general trader.
INDX.guru wedges itself in between these solutions. It’s a free, beautiful stock market monitor, saving you hours upon hours of research with over six million points of data, instantly digestible.
The users of INDX.guru are therefore those who aren’t ready to spend large amounts of money, but still want access to information delivered to them in a timely manner, so they can make better decisions about when to buy or sell specific stocks.
Qualifying INDX.guru’s target audience wasn’t too difficult. They’re easy to find and target with a short survey. While we did ask a number of behavioural questions, one of the questions was specifically designed to help us learn how we might become part of their learning and discovery processes.
The question was: ‘How do you like to learn?’, with responses being:
Unanimously, the answer was ‘by reading’.
Armed with this insight, the next task was to find the most influential publications for our target market. Again, not too difficult.
[Tweet “Find the influential publications for your market. @TomerGarzberg http://j.mp/shoulderofgiants”]
A quick Google for ‘Stock Market News’ and ‘Stock Market Blogs’ provided a seemingly endless list. A collection of around 30 target publications yielded plenty of opportunity.
I called a meeting with everyone on the team helped to uncover in-roads to a number of publications which we may be able to get access to the editorial team, and then negotiated with our primary media source to secure a contribution opportunity.
While INDX.guru operates in its own space and supplies a unique value proposition in the midst of other market solutions, it was critical to identify which other products our target audience were using and determine where we fit into this equation.
I was able to identify through this process, not only the closest-match offerings, but highly publicised startups which had grown from very humble beginnings to a mature product with millions of users.
The methodology for selection was product maturity vs social activity (mainly Twitter-based interactivity) and overall public user sentiment towards the product themselves.
Next came the culmination of the hack I like to call ‘Shoulders of Giants’. This is an acquisition hack that uses the most powerful weapon in the inbound marketing arsenal: leverage.
[Tweet “The most powerful inbound weapon: leverage @TomerGarzberg http://j.mp/shoulderofgiants”]
I have a general rule of thumb when looking at solutions for acquisition. Leverage everything. Leverage the connections you have, the connections the founding team and the execution team has, leverage the people those people know. Leverage any connection you can get your hands on via LinkedIn, leverage your skillsets, your negotiation skills, the media … everything.
Once you have a list of everyone that could possibly help you on your cause, find someone that can help you sweeten the deal when pitching a contributed piece to a publication.
When you have an ‘in’, then leverage your content writing skills to compile an article which elevates the status of the ‘competitors’ you’re leveraging. The beauty in this, is that everyone wins. Your product wins, the publication wins, and your ‘competitors’ win. The readers also win, they get to learn and be a part of products that are changing the world, and yours is right in the mix.
So, what does a real-world example look like? Here’s my article on TheStreet, one of the world’s leading investment blogs, out of Wall Street: 4 Game-Changing Stock Market Apps To Start Using Today
So, just how effective is the ‘Shoulders of Giants’ hack? Here’s a graph that shows the enormous spike in growth versus the daily database growth rate, once the article was published.
Then StockTwits did this on Twitter and helped me milk as much value out of that article as possible.
There’s always some product, whether they compete with you or not, that has more users, more credibility and more market saturation than yours, but everyone loves free publicity. They love it so much, they’ll happily thank you for it with something as effortless as a Tweet to their own, highly valuable niche audience. It’s the type of exposure your product just can’t get anywhere else.
[Tweet “Everyone loves free publicity. @TomerGarzberg http://j.mp/shoulderofgiants”]
Got an awesome acquisition hack? Share it in the comments!
For the past few months, I’ve been working with Sydney-based INDX.guru, the “most beautiful stock market monitor on the planet”, on their launch strategy.
INDX.guru is one of those interesting knowledge-based startups that changed the delivery of valuable information, which was traditionally only accessible to prominent or successful investors. While alternatives to INDX.guru can cost you up to $36,000 per year (making it well out of reach for the majority of the population), INDX.guru is completely free.
The fintech startup is in a relatively new space, as one the key success factors in stock market investments. When investing in markets as volatile as a stocks, a critical component to timely decision-making is information. The more information you have delivered to you that you can process quickly, the faster your reaction times to the market, and thus your potential for profit.
The result is a product which delivers over six million points of data, in one beautiful dashboard, blisteringly fast. I was excited to get on board.
While the product team made their refinements, I took the opportunity to optimise the onboarding process, and leverage the time to launch to build up their waiting list, so that we could launch with excited users rather than simply a slow start.
[Tweet “Launch with excited users rather than a slow start @TomerGarzberg http://wp.me/p5tk0P-9V”]
I’ve been involved in a decent amount of pre-launches over the years. What makes every pre-launch more difficult, is you’re targeting a very specific kind of user. Yes, you’re targeting those potential users you’ve defined in your personas (the type of thing you’re hopefully doing before you write one line of code), but you’re also targeting a very specific subset of those users, the early adopters.
Early adopters are a special kind of human. They revel in being first to use something, they’re the first to share something, they’re the catalyst when something goes viral, they’re comfortable with risk, and they’re generally much more forgiving when something goes wrong.
[Tweet “Early adopters are a special kind of human @TomerGarzberg http://wp.me/p5tk0P-9V”]
With this knowledge in mind, I tried several avenues to build the list, and found the more niche the resource I was posting to, the better the results (no surprises there).
What was extremely interesting to me, was the fact I was able to increase the quality of the list by tackling both sides of the equation. If the goal was to increase expressions of interest in the product, and the solution was to go out and find the people who would ultimately express their interest, how could I refine the audience I targeted, and supply them with an interest-worthy delivery to convey value?
It’s niche targeting-upon-niche targeting, essentially. I had to go out, talk the language of our users in channels they already exist, and deliver them localised personalisation to convince them to join the waitlist.
One of the most important steps in this whole approach, and certainly one that was the most trickiest, is negotiating digital airspace on web-based publications with a large audience that were predominantly in our target audience, being investors.
If you’re not already writing your own content on your own blog, or your product’s blog, start. Right now. One of the key factors in negotiating contributions to established publications was my existing content on my blog (the one you’re reading right now), content on INDX.guru’s blog, and my engagements on other publications I write for (like TheStreet and LifeHack).
This is most certainly a numbers game, so it’s important to not despair when you’re not getting any bites back. Craft your email in such a way that conveys your capacity to increase the readership and versatility of your target publication, and make it less about the promotion of your product. Publication editors don’t care about your product, they’re constantly bombarded with requests. They care about adding value to their readers, so pitch something worthwhile.
If you’ve received the green light to begin supplying content to a publication, avoid making it a ‘salesy’ piece. It’s important to serve their readership with relevant content they actually find useful. Also avoid, where possible, to link to yourself (or have full disclosure when doing so)… generally just save it for the bio.
Give your hard-earned traffic something they can relate to. In INDX.guru’s case, this is the localisation of vernacular to reflect something that matters to them. For example our US visitors saw a control CTA of ‘The most beautiful NYSE monitor on the planet’, while Australians saw ‘The most beautiful ASX monitor on the planet.
Finally, and because it was important to test the effectiveness of the words surrounding the localisation, I delivered variants of the CTA to test the best combination of keywords to drive the most conversions.
What’s your best conversion technique?
In order to really understand any topic worth understanding, one of the best things you can do is get inside the mindset of someone who does it for a living; this is especially true for a growth hacker.
The growth hacking mindset is about embracing a no-nonsense attitude. There is no fancy padding or time to second-guess yourself – it is all about using data, limited resources and your own wit to accomplish your goals.
[Tweet “#growthhacking goals via data, limited resources, wit http://wp.me/p5tk0P-9K @TomerGarzberg”]
First things first: abandon any sense of ego.
Your opinion on your product or service will stop mattering very quickly. You are not the customer and the real customers will be the ones to have the final say in your product achieving success. The idea of abandoning ego capitalises a big portion of the first step. You should focus on getting rid on any unnecessary concerns, distractions and uncertainty – there is just no time to spend on these sorts of things.
Now, let’s step into the actual work. What is needed first and foremost is a strategy. As chaotic as growth hacking sounds, it is absolutely not about blundering forward without a second thought and hoping something works. It is all about strategy, setting an outline of sorts and understanding the process of your own plan. No assumptions, no guessing, just a straight plan. Set goals that are actually achievable and have a clear outline of how you will get there.
Importantly, have your growth ideas cemented, well-researched and backed up by customer affirmation. Chatting with and surveying customers, even just potential customers, is invaluable to the process and reaching your goals. Getting active users that retain when it comes to your product is what you want in the long run. This is unlike traditional marketing marketing, that counts on conversions for its success indicators. Conversions are not the ultimate focus when it comes to growth hacking, long term customers that increase the acquisition value or the revenues of the product, are.
Without the traditional marketing resources or approaches at play, putting yourself into the mindset of a growth hacker involves thinking about the longevity of the platform you are creating – thinking like an engineer and like a customer simultaneously. What is it that will convince a user not only to stay with the product, but to share it with others?
We then think about what it would take for someone to want to share their experience of a product with their family or friends. Psychologically, people want to come across as a person of authority and “in the know”. Giving people the advantage to be the first to talk about or share a new, exciting product en masse, is going to provide a growth boost.
Word of mouth is one of the biggest marketing tools and it is no less powerful when it comes to growth hacking. Get people talking about your product, listen to their feedback and how they want you to iterate the product. Better still, if you can build addiction into your product, it will advertise itself automatically.
[Tweet “#growthhacking: build addiction, advertise automatically http://wp.me/p5tk0P-9K @TomerGarzberg”]
To keep the momentum of user-fueled growth, one of the most effective hacks is incentives. Offering a reward of some sort to users who recommend others such as monetary rewards, perks or discounts. If you were getting invested into an all new service and platform, you would want the most out of the experience and rewards for getting your friends involved – sort of like recommending a friend for the job, you’d prefer a reward for putting yourself out there. A growth hacker has to use that alchemical mix of artist meets scientist: logical thinking, and solutions via opportunities.
Timing is also incredibly important, and not just in the sense of seeing rapid growth. An idea can be the most amazing one in the world, but if it is executed at the wrong time, it risks falling flat. Like with Nintendo creating virtual reality gaming several decades ago – it didn’t go well. However now, we have companies vying left and right to hack their own success from the Oculus VR.
Similarly, AirBNB had been improving their own platform for years with the tactics discussed in the top ten triumphant growth hacks of all time. Even if the timing isn’t perfect, you can still use the mindset of a growth hacker to make the best of it and use it to your advantage. Tweaking, testing and perfecting fall into that scientific mentality – always seeking to make something perform better or advance it in new ways. A marketer will take the chance to research the changes and use it fully to their advantage. A growth hacker takes the best of both worlds and uses it to get to the finish line of that framework.
The mindset of a growth hacker is one that anyone can take advantage of, not just those looking to launch a startup, but to any business owner or person looking to get their ideas out there. Minimal resources? No problem. A growth hacker is the master of taking what they do have, giving themselves a framework and finding their way to success without coding mastery or marketing in the traditional sense. That mindset is one any business person should try and slip into – it’s the most comfortable suit you’ll ever put on, guaranteed.
[Tweet “#growthhacking: Tweaking, testing and perfecting http://wp.me/p5tk0P-9K @TomerGarzberg”]
How has growth hacking changed the way you manage your product or service?
When I first started dabbling with ingenious, data-driven growth methods back in the mid 2000’s, I wasn’t aware of the term ‘Growth Hacking’. After all, I only wanted to do one thing. Validate a product using the little cash resources available. Fast forward and now startups, regardless of their level of funding, and Growth Hacking go hand-in-hand.
Plenty of the big name start-ups and companies have used Growth Hacking techniques to get not only a massive edge on the competition and to cement themselves as dominant market players. Here’s ten of the finest.
[Tweet “The Top Ten Triumphant Growth-Hacks Of All Time http://wp.me/p5tk0P-9E @TomerGarzberg #growthhacking”]
[Tweet “The Top Ten Triumphant Growth-Hacks Of All Time http://wp.me/p5tk0P-9E @TomerGarzberg #growthhacking”]
These are ten big names and proven growth-hacks. Do you know of any amazing growth-hacks to add to the list?
I once had the impression that the ‘devil was in the detail’. I mean, it wasn’t like anyone had told me any different. Exploring a new idea meant hours of brain dumps, envisioning an idea that I ‘thought’ was a great idea, but lacked market credibility. I learned nothing kills time, money, and product uptake like the convoluted depths of barrierless imagination turned into a product. Although ‘building lean’ is a notion only recently popular, it’s something I wish I had in my arsenal many years ago.
[Tweet “Nothing kills time/money/uptake like depths of imagination turned product http://wp.me/p5tk0P-9g”]
So, you’ve got a great idea for a startup and you’re excited for the world to experience it. You spend days, weeks, months formulating ideas, noting down pages upon pages of scope. Every waking moment consumed your brain, you can’t even use the bathroom without tapping more thoughts into Evernote. Your 20-page specifications document is ready to see the world, the quote to build it is mind-boggling, but you assume that’s the price you pay to build the next big thing. You dive right in, a year of development goes by, you launch your product.
Then nothing happens. Users are unaware how your product benefits them, they’re confused by the complexity and innumerable features. You forgot to build a true MVP and raced to the “finished” product, that turned out on a completely different trajectory to what your customers actually wanted.
There are ways to avoid the above scenario, and it only takes the comprehension of two important things: Your market, and how your product can supply value to that market.
1. Understand Your Market
Think of your approach to finding your niche market as a choice of firearm between a shotgun or a sniper rifle. It’s easy to take a shotgun, spray bullets in every direction and hope to hit a potential target. It takes a lot more concentration and dedication to take a sniper rifle to hit your target, but you can rest assured, you’ll hit your target.
[Tweet “Finding niche market is choice of firearm between a shotgun or sniper rifle http://wp.me/p5tk0P-9g”]
That’s the difference between formulating your idea with a vague idea of who you’re targeting versus knowing exactly who you’re targeting, and only then building the product.
2. Solve One Problem For Your Solution Fit
You can’t be all things to all people, so it’s important to identify early on who is going to purchase your product. One of the greatest early indicators of startup success, is that the startup is solving a real, existing problem, in a niche market large enough for business viability.
[Tweet “You can’t be all things to all people, identify who is going to purchase http://wp.me/p5tk0P-9g”]
Here’s how you find your Problem-Solution Fit:
How did you determine what you needed to build? Did your idea change after performing a problem-solution fit exercise? Share it below!
I was 18 and it was my first ever attempt at a tech startup. The idea was ‘just ok’, a social chat engine that let you communicate the way you wanted to, through any medium, on a whim. The team was non-existent, funding was a pipe dream and the only experience I was bringing to the build was this notion that it ‘might’ do well. There was no lean approach, no minimal viable product, no market research, no regard for competitors. The vision to build this product was fuelled by my newly found appreciation of outsourced labour internationally. I was able to leverage top-notch designers and highly experienced developers to build this product. When it was complete a year later, it was a big, convoluted, bloated product with no users. Success came down to finding out exactly how to measure success or friction points of the product, but that was knowledge I was still yet to learn the hard way. Had I known about building lean, measuring success and friction points and iteration based on lessons 12 years ago, the product would have been completely different, I would have built a fraction of the end solution, for far less resources, and it might have even seen the light of day.
Which Key Performance Indicators (KPI) should I track? It’s the very question that could determine how successful your product actually becomes.
[Tweet “Which KPI’s should I track? http://wp.me/p5tk0P-8V @TomerGarzberg “]
While it’s nice to see 100,000 visitors arrive at your site and call it a successful day, in reality there’s danger lurking behind this logic. What good is 100,000 users if only a tiny fraction actually sign up, buy, or are retained?
The best part is, if you’re noticing these kinds of discrepancies, you’re already halfway to improving your product. Nearly all new product offerings require some kind of conversion lubrication, be it through design, the call-to-actions, psychology or incentives.
[Tweet “All new products require conversion lubrication http://wp.me/p5tk0P-8V @TomerGarzberg “]
Tracking KPI’s arm you with the tools required to understand what is going on with your business, at any given time. Tracking the right KPI’s will supercharge your growth rate as you are able to act on friction points before they cost you too many missed opportunities.
There are hundreds of KPIs that can be tracked. There are only so many resources in your business and so many hours in a day, so it is best to focus on the most important KPIs. Here’s six KPIs that really can help you make the product decisions that will boost your sales to the next level.
1. Lifetime Value of your Customers
The biggest asset you’ve got in your business is the ability to tap into your current customer pool. You want to do everything you can to optimise your customer lifetime value and convince them to continue to support your product.
You may have a little feedback from current customers that give you a feeling that you’ve hooked up with them, but you need to quantify this KPI in order to track it properly. Do this by multiplying the average sale per customer times the average number of times a customer buys every year . Multiply the results by the average retention time for your average customer.
(Average Sale per Customer) x (Number of sales per customer yearly) x (Average retention time) = Lifetime Value of Customer
[Tweet “#KPI Lifetime Value of a Customer http://wp.me/p5tk0P-8V @TomerGarzberg “]
Using this quantitative tool, you can see clearly where you stand with your customers. It can show you how your acquisition and retention techniques are working so that you can tweak your offering or product to increase the lifetime value of your customers. You may think that a current campaign is cultivating the relationships, but if the KPI indicates that it isn’t, you can move in a different direction so that you can tap into this rich resource and bring new services or products to the customers who have already shown you support in the past.
2. Sales Revenue After Acquisition Activities
Online sales can be an exciting field, but you need to track the numbers concerning revenue. The bottom line is that you’re here to make money and your sales revenue says a lot about the health of your acquisition strategies.
[Tweet “#KPI Sales Revenue after Acquisition Activities http://wp.me/p5tk0P-8V @TomerGarzberg “]
Do a cost benefit analysis for each area of your inbound activities. For example, if you have a blog and pay people to keep it going, make sure that it generates enough sales to warrant that expense. Common sense tells you this, but it takes crunching a few numbers to make a decision. Subtract your total revenue from inbound marketing (IMR) from your total sales (S) for the year to gauge your success in the area.
(Sales) – (Inbound Marketing Revenue) = Sales Revenue After Acquisition Activities
3. Return on Investment for Acquisition Activities
This KPI expands on the previous one to help you determine your return on investment based on the amount you spend acquiring users to your product.
[Tweet “#KPI Return on Investment for Acquisition Activities http://wp.me/p5tk0P-8V @TomerGarzberg “]
Using ROI measurements helps you unlock knowledge as to how hard your marketing dollar is working for you, and whether you should be pursuing specific channels due to their benefits to your product. Measuring Return on Investment is your Gross Profit minus your Acquisition Investment, divided by your Acquisition Investment again.
(Gross Profit – Acquisition Investment)
4. Customer Acquisition Cost
Customer acquisition cost tells you how much each converted user (whether they’re signing up or purchasing) actually costs you. This is important because it can shed light on whether you’re spending too much to acquire a new user or a sale. To work out your Cost Per Conversion, divide your conversions over a period of time by the amount spend acquiring them.
[Tweet “#KPI Customer Acquisition Cost http://wp.me/p5tk0P-8V @TomerGarzberg “]
(Acquisition Spend) / (Number of Conversions) = Cost Per Conversion
5. Traffic to Lead Ratio
Traffic to your site is a huge consideration, but you need to understand where you are getting your traffic from to make the best decisions. It’s important to understand if you acquire more leads via organic search, social media, paid networks, media, blogging or directly, and that information will help you keep on top of how to increase traffic, through which channels, and drive up your conversion rate. To work this out, compare your total traffic over a specific period vs your total leads, and continue to meaure this over time to gauge movement.
[Tweet “#KPI Traffic to Lead Ratio http://wp.me/p5tk0P-8V @TomerGarzberg “]
Total Traffic over a Period : Total Leads Acquired
6. Lead to Customer Ratio
This one determines how soon you see money in the bank. You can work out how many potential leads you have per specific period of time and compare it to the actual customers or users you acquired. Alternatively, you can hone right in and find out how many semi-converted leads you have (such as those that started the signup or checkout process) vs those that converted.
[Tweet “#KPI Lead to Customer Ratio http://wp.me/p5tk0P-8V @TomerGarzberg “]
Number of Leads : Converted Customers
There are endless KPI’s to track, and it’s important to understand exactly which ones can help you to translate success with your product. What works for one business, might not work for yours. Even more important, is to avoid measuring vanity metrics. That is, metrics that don’t tell you how your business is actually going, and are just nice numbers to look at.
What’s your go-to metric for overall success? Share it below!
Whenever I start a new Growth Hacking contract in the post-launch environment, it’s easy to get overwhelmed at the depth and complexities of various industries. Generally, the product I’m about to work with is a result of years of careful planning and production. If I’m lucky, the minimal viable product they’re hoping to validate in the market is a simple response to an observed market pain point, and the AHA! moment is ever-present, works like magic, and is the weapon they’re using to hook early adopters in.
Simply click ‘File’ and ‘Make a Copy’ to save it as an editable file in Google Drive: http://j.mp/OnboardMap [/optinlocker]
Be it B2B, B2C, C2C, C2C, or SaaS, I’ve worked on such diverse sets of product releases over the years, it’s almost impossible to systematically execute the same approach to each product. Couple that with the range of diversities in subject matter, product-solution/product-market focuses and niche demographies, you’re basically starting with a blank slate each time you start a new contract.
So when I find correlations or similarities between contracts, I jump at the chance to create some type of framework to help me achieve consistency and speed of integration.
One factor that presents itself each time, is the need to onboard with each new product I’m working on. This happens to establish familiarity with the product, the users that already or will use it, and sets up a foundation for experiments on the conversion and retention fronts. For me, Growth Hacking onboarding typically involves the following processes, give or take:
[Tweet “Onboard mapping sets up a foundation for experiments with conversion and retention @TomerGarzberg”]
I found that creating a visual map of the entire product signup and usage processes (much like the UserOnboard.com Teardowns) and presenting unfiltered commentary on my first use of the product, ensured I was able to see the product from the perspective of a new, uninitiated user. This creates an opportunity to pay careful attention to, and record, any confusions, frustrations, observations and criticisms of the process without being too heavily influenced by the product if I were to already be an avid user of it.
[Tweet “Onboard mapping: see the product from the perspective of a new, uninitiated user @TomerGarzberg”]
The process depends on the medium in which the product exists, but in all, you need to capture screenshots of every step in the signup and usage of the product itself. From a mobile device, simply a screenshot of each step of the journey is perfect. Then just upload it all to Google Drive/Dropbox or email it to yourself. For the web, l I’ve found Jing by Techsmith helpful to achieve this in a pretty efficient manner.
Once you have all the screenshots, simply arrange them in a document to outline the journey each user currently takes through the product, as well as taking note of any notification settings and how notifications actually work to bring users back to the app.
When these are all laid out, focus at least 10 minutes of your time in trying to pick apart each individual screenshot, and writing your thoughts and comments against the screenshot. These will form the basis for any potential A/B test you aim to do to increase the effectiveness of the conversion and retention processes.
[Tweet “Onboard mapping: focus 10 minutes to pick apart each individual screenshot @TomerGarzberg”]
I’ve created a powerpoint template I use for a typical onboard mapping process I use (for this example, I’ve used Instagram’s Hyperlapse app), and it’s yours to use for free!
Simply click ‘File’ and ‘Make a Copy’ to save it as an editable file in Google Drive: http://j.mp/OnboardMap [/optinlocker]
[Tweet “Download this FREE Growth Hacking onboard map template! http://wp.me/p5tk0P-8F @TomerGarzberg”]
Do you have any special processes when working on a Growth Hacking project? Share them below!