Entrepreneur Voices on Growth Hacking

The Staff of Entrepreneur Media, Inc., Derek Lewis

• Publisher: Entrepreneur Press
• Year: 2018
• Print ISBN: 9781599185576, 9781623367930
• eBook ISBN: 9781613083871
• Topic: Economics
• Subtopic: Sustainable Development
• Index: Economics

Readers will get insights on:

• What to expect when growing your company -- expectedly or not
• How Dollar Shave Club's founder changed an industry and built a $1B company in the process
• The reasons why growth hacking may not work for every company
• Using social media to build a cult-like following like Glossier
• Seven things to outsource immediately to scale your business
• Decide if your company should sell directly or through retailers
• Forming long-lasting strategic partnerships
• When slow growth is the best strategy
• How the stars of 'Fixer Upper' grew business and transformed their townIncludes content contributions, interviews, and insights from:
• Kristen Tomlan, founder of D?
• Alyssa Giacobbe, Glossier founder
• Ivan Misner, Ph.D., founder of BNI and author of Networking Like a Pro
• Michael Dubin, Dollar Shave Club founder
• Reid Huffman, Linkedin co-founder
• 'Fixer Upper' stars, Chip and Joanna Gaines
• Soulja Boy
• Companies like: Amazon / Whole Foods Venmo, Apple Pay, and more

PART

I

A CRASH COURSE ON GROWTH HACKING

What is growth hacking?

It’s hard to pin down, but to paraphrase Supreme Court Justice Stewart: “I know it when I see it.”

In the following pages, you’re going to read differing definitions of growth hacking. Some are just a matter of semantics; some are fundamentally different. Some authors talk about the different ways to hack your company’s growth; some are more concerned that you know why you want to do so in the first place. In fact, some even offer conflicting advice.

And that’s the beauty of this book.

Instead of tips and tricks from a single author, this little gem offers advice from dozens of perspectives: an accelerator mentor, a cookie dough entrepreneur, SaaS experts, and more. Instead of trying to find common ground, we have found great content on the topic and brought it all together in one place.

Here in Part I, you’ll find a cross-section of expert advice on growth hacking from trying to define it to trying to do it. You’ll find entrepreneurs who love the idea and those who abhor the phrase itself.

Enjoy your ringside seat.

CHAPTER

1

GROWTH HACKING IS ALL IN YOUR HEAD

Andrew Medal

For companies looking to grow, a solid growth hacker can easily be mistaken for a superhero.

With new channels through social media, video, and content popping up all the time, “hacking growth” has become a more complicated process than it was a few years ago. The game has gotten harder, but the rewards have also gotten bigger. If you have a knack for marketing and love making things go viral, there’s never been a better time to become a growth hacker.

To help give you a better understanding of what it takes to be a true growth hacker, here’s what you need to get you started:

1. A Feel for the Audience

The internet is packed with options that help improve conversion rates and build loyal followings. From social media pages, advertising platforms, and emails, as a hacker you have plenty of ways to cultivate a community of customers. It’s your job to discover which customer segment is the most viable for your business and how you can find a way for that segment’s involvement with your company to go viral.

Get started by having a feel for your audience and your ideal buyer personas. This understanding will be a good place to start, especially as you work to find out which channels your core customers will most likely be found on. Segment your audience into three to six different personas based on who you want to target first and who you want to put on the backburner.

Remember, one of the easiest ways to hack growth is to master the marketing funnel of a small niche group, and then replicate it. If you look at most tech companies that have gone viral (Facebook, Uber, Airbnb), they all follow that same mentality to some degree.

This will allow you to dissect the groups most inclined to your brand. A deeper insight into customers’ interests, values, and occupations are will help you tailor your message directly to them, making it much easier to get conversions.

2. A Measurement Obsession

Today, marketers use analytics tools because they have to. Simply put, if you aren’t analytics driven, you aren’t a real growth hacker. Data-driven marketing tools encourage not only growth hackers but the entire organization to plan ahead and think about their results and goals in defined, measurable metrics.

Without measurement tools, marketers quickly fall victim to making decisions based on vanity metrics. Planning ahead and using solid data and management tools will help you decide which metrics are right and allow you to take action faster, smarter, and more effectively. It’ll also improve the output of your team and give very clear definitions of the deliverables and goals you need to hit.

But before you go on a marketing tool buffet, it’s important that you spend most of your time understanding what the right data is for your measurement model. To start, identify your business objectives, your goals for your objectives, your key performance indicators for each goal, and finally the segment audience for each objective.

The mindset behind gathering this information stems from a need to keep a focus on business goals as opposed to just one aspect of your business, like your website. As your site grows, the allure of vanity metrics can lead you away from the reason behind building your site in the first place. Your best approach to staying up to date on all of these important aspects is keeping an equal eye on your entire marketing funnel and then pinpointing which part of the funnel is the bottleneck to going viral for your company.

3. A Mind for Data-Driven Decisions

The number-one thing on every growth hacker’s mind has to always be metrics. As a hacker, you will have to make decisions backed by hard data. The old fogeys of the marketing world dodge necessary analytics tools and make decisions based on gut feelings. They overlook the fact that in today’s ever-changing digital age, gut feelings don’t accurately reflect the actual moving parts behind your business’s performance.

They rely on what they see instead of what is actually happening. On the contrary, good growth hackers understand that data-driven information will lead to a true understanding of the effectiveness of their spending. The best growth marketers understand that the best decisions and projects ride on the support of solid data.

Always have hard data to back your decisions. Start by becoming a pro at Google Analytics and work your way to new platforms from there. Growth hacking, in reality, is more a mentality than an actual skill set.

If you’re obsessed with growth and a bit of a data nerd, you’re already well on your way to becoming a true growth hacker.

CHAPTER

2

FIVE GROWTH HACKING MYTHS FOR SOFTWARE ENTREPRENEURS

Matthew Capala

“Growth hacking” has become a popular buzzword used by many people who often know a fair amount about growth but usually very little about hacking. Certain misunderstandings and even myths have become attached to the term. These common myths are problematic because they conflate, confuse, and practically destroy the proper meaning of “growth hacking” altogether. Below are five you should be especially wary of.

1. There Is a “Growth Blueprint”

There is no ultimate blueprint, road map, template, checklist, or rulebook to growth hacking. While examples such as Airbnb, Uber, Dropbox, etc. provide nice case studies to list in blog posts, more often than not, successful growth hacking strategies and tactics work once—and only once.

The good news, however, is that there’s no shortage of growth hacking best practices. You can discover them by perusing articles posted in the Growth Hacking section of Entrepreneur.com, over at GrowthHackers.com, or a via a gaggle of recent books on the subject.

Bottom line: growth hacking is as much about attitude (curiosity, playfulness, and empiricism) and capability (willingness to code and to get one’s hands dirty, experiment, fail, adapt, and reiterate) as it is about replicating the methods already used in specific instances.

2. They Will Come Just Because You Built It

While it’s not theoretically impossible for a great software startup to go from zero to infinity on the basis of its organic marketing efforts alone, the odds of this happening materially diminish each day as the massive user platforms (I’m looking at you, Facebook) continue to constrict organic reach in order to attain their own growth metrics.

In the early days of the web, it was much easier to build scale, to rank on the front page of Google, or to just stand out in the feed. Today, do you really expect your world-ruling app to stand out in the app store without some kind of marketing push? Or to dominate Google by “outsourcing your SEO”? I didn’t think so.

My point here isn’t that attempting to build products with built-in users isn’t obsolete. But unless you’ve got some kind of marketing budget in place to strategically push your product, you’ll be running handicapped in a very competitive race. Remember, you’re competing with a wily group of growth hackers!

3. Great Products Sell Themselves

This myth is likely an unwanted, unconscious byproduct of the feature-obsessed, engineering focus of so many software startups today. Yes, we know your code is beautiful. But even the best, most innately viral software needs to be discovered. Otherwise, the dream of deploying a “perpetual motion conversion machine” will remain in your head.

Discovering what will make you discoverable means digging into your data. The uglier it is, the more likely that it will yield insights.

Resources include:

• Website analytics (Google Analytics)

• Email open/click rates (MailChimp, AWeber)

• Social and content marketing (Buffer, Buzzsumo)

• SEO (SEMrush, Moz Open Site Explorer, Yoast)

• Heat maps, feedback polls, surveys, user session recording (Hotjar, Qualaroo, Inspectlet, ClickTale)

Measure this data, analyze what’s working, and then optimize. Repeat as necessary.

4. Growth Hacking Isn’t “Black Hat”

“Black hat” refers to aggressive, often under-handed SEO strategies. Yet just because your strategies and tactics are incomprehensible to your standard Wharton-educated CMO, that doesn’t make them disreputably black hat. (If there’s anything truly “black hat” and flat-out illegal, it’s the way Madison Avenue agencies habitually—allegedly—use media rebates from big brand budgets to line their own pockets.)

Sure, growth hacking often means using legal loopholes (Uber), reverse engineering (SEO), algorithmically generated anti-competitive tactics (Google), and other tactics that may or may not be entirely ethical. But these tactics are part and parcel of the envelope-pushing hacker ethos, which doesn’t wait for a tactic to be validated by the establishment before it’s deployed.

5. It’s All About Acquiring New Users

Fred Wilson, a veteran New York-based VC who knows a thing or two about startup culture (Wilson’s firm survived the dotcom bust of 2000 very nicely), notes that too many businesses these days are stepping on the gas before they find a proven product-market fit. Instead, Wilson suggests that a company “focus on your 90-day retention numbers and make sure to nail them and prove you have a product market fit. Then scale.”

Growth hackers know that existing users are always the best place to look for new users. Uber’s strategy reflects this stance perfectly. It’s all about personal referrals, word of mouth, and unpaid referrals. Put another way, “Leaky buckets don’t need more water; they need their holes fixed.” This means that a lot of growth hacking isn’t that radical or revolutionary; it’s about paying attention to wh...

Table of contents

• Cover
• Title Page
• Copyright
• Contents
• Foreword
• Preface: Not Your Average Hacking Advice
• Part I: A Crash Course on Growth Hacking
• Part II: Growth Hacks for Your Marketing
• Part III: Growth Hacking Relationships
• Part IV: Hacking Your Industry for Growth
• Resources