growth hacking
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The “health” of a startup’s growth can be a strong predictor of how large and valuable it can become. Our generation’s most valuable startups have all sustained a high rate of user/revenue growth over an extended period of time. As such, founders, employees and investors are all trying to figure out if their startup can achieve sustainable growth to create a large and enduring business over time.
Simply looking at top-line growth tells you relatively little. Two startups that are currently growing users or revenue 300% every year can each have different long-term prospects. It’s almost like looking at two people of the same age, height and weight, and projecting the same quality of life and longevity for both — there are many more factors that can help you make better predictions. Startups are similar, and it’s important to dig deeper into the health of a startup’s early growth and work to build the right foundation from an early stage.
Paid marketing can be a useful tool in your toolkit to accelerate an already humming flywheel. Just don’t let it be the only one.
Prior to becoming a VC at Defy, I founded two companies and was Eventbrite’s VP of growth for over six years from startup through IPO. Working across all stages from founding through to public company and advising many other startups along the way, I’ve landed on five critical factors for healthy and sustained growth that can be the difference between a startup failing, getting to a modest exit or building a valuable and enduring billion-dollar company.
At its core, any successful product or service delivers more value to the user/customer than it costs to use (money or time). To see if your product is delivering true value, ask if it is achieving strong user engagement and customer retention. My friend and growth guru Casey Winters captures this well: “Product-market fit is retention that allows for sustained growth.”
Consumer startups can evaluate this via through cohort-based retention analysis of how frequently customers use the service, and how long they are retained for. SaaS businesses should be talking with customers often to gauge their happiness while also looking at logo retention as well as gross and net revenue retention — ideally, the business should show early signs of being a net-negative churn business, wherein revenue from existing customers actually grows over time, even after accounting for churned customers.
Many people incorrectly think “startup growth = customer acquisition.” In reality, retention is the most fundamental aspect underlying sustainable growth.
Customer obsession, plus organic pull from the market, are indicators of early product-market fit and signals of future growth potential.
Here are a couple ways to measure this:
See if a healthy percentage of the business is growing without paid spend, generally through word of mouth or some other form of virality. If your business is seeing more than 50% organic growth at a fast rate (200% to 300%+ year over year), you’re solving people’s needs well enough that they’re now sharing with others and creating a positive viral effect.
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Growth marketing is often misconceived as a set of tactics when it’s much more: It is a process that startups need to put in place in their early days that will scale as their customer base and internal teams grow.
This is where British growth agency Ascendant shines, Robyn Weatherley, head of marketing at Thirdfort, let us know via our growth marketing survey. Ascendant’s consultants haven’t just helped the British legal tech startup execute growth tactics, she wrote: “They’ve helped us set up the framework to keep executing on those whether we are five, 50 or 500 people.” (If you too have growth marketers to recommend, please fill out the survey!)
“If you don’t come from a growth marketing background, you don’t know how to even frame the problem, let alone fix it. This is why so much startup marketing is tactical rather than strategic.”
We followed up on this recommendation by interviewing Ascendant co-founder Gus Ferguson and partner Alyssa Crankshaw for our ongoing series of growth marketer profiles. If you are in the U.K., you might know them from the TechLondon Slack community, or bumped into them pre-COVID at the OMN London events, the digital marketing meetups they co-organize. In the interview below, they share how they work with early-stage companies, including tactical planning and building out tools for marketers to use without taking up internal engineering resources.
Editor’s note: The interview below has been edited for length and clarity.
Can you tell us about your background and how you came to work with startups?
Gus Ferguson: I’ve been a digital marketer for the last 15 or 16 years, and in 2009, I started one of the first content marketing agencies in the U.K. We did a lot of work with big travel brands, but the problem was that in big corporates, teams are in silos, so they weren’t able to take advantage of being at the forefront of marketing.
Gus Ferguson. Image Credits: Ascendant
I was based in East London and I started working with a couple of startups. It’s also around that time that I partnered up with Alyssa. But we were looking at startups being hampered by traditional marketing — because traditional marketers were bringing big corporate problems to startups, when their key strength is their nimbleness and their agility and their ability to adapt.
That’s when we started developing processes for basically building businesses from scratch — when you don’t have any historical data to base your marketing strategies on. We were saying to them: Don’t ask us for a 12-month plan, because it’s a waste of time. But because there was that mindset at the time, that’s just what people expected. So we were going in and saying: You need a broad three-month plan, maximum; then a one-month plan in detail, and ideally a two-week sprint.
What kind of clients does Ascendant work with?
Gus Ferguson: Thanks to the growth framework that we’ve built up over time, we can pretty much work with any new business where there’s no existing process for marketing. We work with fintech, healthcare and legal companies, e-commerce brands, and both B2C and B2B. So startups, but also startup-type businesses. For instance, we worked with corporate ventures like Canon and VCs like Forward Partners, which was really interesting learning, because we were working with earlier-stage businesses than we would normally.
One million in funding is our sweet spot for startups. The reason for that is that it costs money to bring experienced growth experts into business, and up to that point, I believe it is important for founders to understand growth themselves. Being able to understand how to do it at that early stage will create such a valuable foundation of audience centricity for that business moving forward. A lot of what we do is bringing audience centricity into product-focused businesses — and generally encouraging founders to think about why their audience should care that they’ve got a solution to their problem.
Right, “build it and they will come” is a mistake that founders make all the time! Could you give more details on how you help them?
Gus Ferguson: Generally we’ll look at whatever they have as a foundation, and at similar businesses, and we’ll create an initial growth model. We’ll start putting hypotheses in place as to which channels are going to be the most effective at hitting their short-term objectives if they have them ready. But often, part of the process is also defining which metrics matter for that business, and working out how to measure them.
We always start working with founders and sales, and generally before or with one first marketing hire in place. Part of our work is to come up with projected results based on their funnel, but very often, with product-centric businesses, it will be that funnel that’s missing. So we bring in a bit of funnel thinking to those businesses and get that in place.
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And then there’s all sorts of what we call framework building that needs to be in place before you can start doing more traditional campaign-based marketing. So we’ll start looking at the specific frameworks around data, and how to form an objective truth for that business, with a shared understanding of the key metrics. When nobody knows what the fundamental data framework of that business looks like, for instance, because of team turnover or silos, we’ll tighten that up and make sure that everything is functioning together so that things like marketing automation are possible.
It’s perhaps a bit surprising about siloed teams at an early stage; how big are the startups you work with?
Gus Ferguson: We start when they are small, but we keep our clients for a long time. So, for example, we worked with Elder, which is a health tech startup. When we started off with them, there were 12 people, and when we finished with them, there were hundreds of people. Soldo is another example: When we started the marketing team was one person, and by the time we left, they were spanning three floors at WeWork.
Our lifecycle ends at Series B, because at that point, all the frameworks will be in place and they’ll be bringing everything in-house. So that’s our happy ending when the clients get to huge Series B raises. And then we move on to the next one that needs our help to get there.
But to go back to your question, slips happen because these are very venture-backed companies with very high growth not just in customers but also in their internal teams. Everybody is doing everything, everybody is new at their jobs, and there aren’t very many internal processes, so there’s an element of chaos. That’s where the need for cross-functional teams grew from — to step out of everybody’s individual chaotic worlds and create an island of shared objectives and order.
Alyssa Crankshaw. Image Credits: Ascendant
Alyssa Crankshaw: It’s just important for us to make people communicate. We often end up actually becoming a reason for the whole team to talk to each other — because we are external, they see more value in these tasks that they wouldn’t do otherwise.
How does that work in practice?
Gus Ferguson: An example of that is the CMS system we are putting in place for one client that we’re working with at the moment, where salespeople use it, marketing people use it, customer services people use it — and those teams were fairly siloed beforehand.
We also know that probably one of the biggest barriers to growth is marketers being dependent on developers, which are such a rare resource. We address that by implementing marketing frameworks at a basic level of the business whereby marketers are able to at least control basic marketing operations directly.
But one of the most important processes that we bring in is the cross-functional team, with one stakeholder from each department. It means that there’s at least one person on each team who understands what the objectives are, and then people start problem-solving together.
Didn’t that become more difficult with COVID-19?
Gus Ferguson: Potentially it got easier with remote. Usually, we find one person on each team — generally the team’s leader — and we bring them as spokespersons into the cross-functional team. In a remote world, it’s actually easier because you can just all jump on Zoom calls.
Alyssa Crankshaw: Even before COVID, we weren’t the type of consultants who sit several days a week in their client’s office. We are problem-solvers across the company, and we’ve always done that, whether it was from our old office or remotely now.
Gus Ferguson: Our own model also proved exceptionally flexible when we needed it to be during the pandemic. We are a core team of three people, and we are working with a network of specialized freelancers — so instead of worrying about fixed overheads, we can have agreements with trusted partners and morph into whatever our clients need at that time. Because of the nature of startups, as I said earlier, it doesn’t make sense to have long-term plans for businesses where there’s such a high rate of change. And from an agency perspective, it means that what we’re doing one month is always very different from what we’re doing the next month.
Alyssa Crankshaw: It’s a conscious decision not to follow a traditional agency model, because it helps us be flexible and bring in the specialists when we need them, rather than just having to use that person that sits on your payroll just because you have them. It’s much more effective for everybody.
What’s a thing that people might not know about what you do?
Gus Ferguson: Growth marketing is a process; it’s really how I differentiate it from traditional marketing. A lot of people will say that growth marketing is the AARRR funnel, but is that really any different from traditional marketing? Not really. Maybe you’ve got a broader set of channels than a traditional marketer would focus on. But what’s really different is the process that gives our clients confidence that they’re doing the right thing, even if they’ve never done it before. Because that’s how you learn.
One of the challenges with doing something new for the first time, in a team of people who are also doing a new thing for the first time with no historical data, is that you quite often don’t even know how to frame that. If you don’t come from a growth marketing background, you don’t know how to even frame the problem, let alone fix it. This is why so much startup marketing is tactical rather than strategic, or even worse, tool-led. People think: “Oh, if I was using this tool, then all my problems would be solved,” when, actually, you need to be able to create the hypotheses and understand the objectives that the hypotheses are answering.
Alyssa Crankshaw: We give our clients the roadmap, the foundation and the operational structure in which to run campaigns, retention, acquisition or whatever the target may be, which is huge for them. Because when creating everything from scratch, that’s where we often see a lot of overtesting. We love a good test — we’re both marketers — but we only like to test the big things. And sometimes when working with inexperienced people, we see a lot of new tests about the smallest things, which is a waste of time and resources. And there are some other things that are foundational, and you just know which they are if you are an experienced marketer and you have done this so many times in your life.
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Everyone at an organization should own growth, right? Turns out when everyone owns something, no one does. As a result, growth teams can cause an enormous amount of friction in an organization when introduced.
Growth teams are twice as likely to appear among businesses growing their ARR by 100% or more annually. What’s more, they also seem to be more common after product-market fit has been achieved — usually after a company has reached about $5 million to $10 million in revenue.
Image Credits: OpenView Partners
I’m not here to sell you on why you need a growth team, but I will point out that product-led businesses with a growth team see dramatic results — double the median free-to-paid conversion rate.
Image Credits: OpenView Partners
According to responses from product benchmarks surveys, growth teams have transitioned dramatically from reporting to marketing and sales to reporting directly to the CEO.
Some of the early writing on growth teams says that they can be structured individually as their own standalone team or as a SWAT model, where experts from various other departments in the organization converge on a regular cadence to solve for growth.
Image Credits: OpenView Partners
My experience, and the data I’ve collected from business-user focused software companies, has led me to the conclusion that growth teams in business software should not be structured as “SWAT” teams, with cross-functional leadership coming together to think critically about growth problems facing the business. I find that if problems don’t have a real owner, they’re not going to get solved. Growth issues are no different and are often deprioritized unless it’s someone’s job to think about them.
Becoming product-led isn’t something that happens overnight, and hiring someone will not be a silver bullet for your software.
I put early growth hires into a few simple buckets. You’ve got:
Product-minded growth experts: These folks are all about optimizing the user experience, reducing friction and expanding usage. They’re usually pretty analytical and might have product, data or MarketingOps backgrounds.
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Ward van Gasteren embraces the “growth hacker” term, despite the fact that some in the profession prefer the term “growth marketing” or simply “growth.” What’s the difference to him? The hacking part should be a distinct effort on top of ongoing marketing, he says.
“Growth hacking is great to kickstart growth, test new opportunities and see what tactics work,” he tells us. “Marketeers should be there to continue where the growth hackers left off: build out those strategies, maintain customer engagement and keep tactics fresh and relevant.”
Based in The Netherlands, he has developed his own growth hacking courses, Grow With Ward, and worked with large companies like TikTok, Pepsi and Cisco, and startups like Cyclemasters, Somnox and Zigzag. In the conversation below, van Gasteren shares the importance of building internal processes around growth for the long term, the state of growth today and his own development.
This interview has been edited for length and clarity.
You’re a certified growth hacker — how do you think this sets you apart from others? How has this certification changed the way you approach working with clients?
I was part of the first-ever class from Growth Tribe (when they still offered multimonth traineeships), which was an amazing experience. The difference that a certification shows is that you know that a certified growth hacker has knowledge of the beginning-to-end process of growth hacking, and that this person is supposed to look at more than just a single experiment to hack their growth.
There are a lot of cowboy growth hackers who simply repeat the same tactics, instead of trying to work from a repeatable process, where you identify problems through data, have a non-biased prioritization process for ideas and will focus on long-term learnings over direct impact. A proper certificate shows that you know what it takes.
When do you think clients should invest in the beginner growth hacking course you offer on your website rather than investing in working with you directly?
I created the course to make growth hacking available to a larger audience. I noticed that almost all other growth hacking courses fell into one of two buckets: (1) cheap (<$200), but focused on superficial growth tactics, or (2) good quality in-depth content, but very expensive ($1,500-$5,000). And I believe everybody should have access to that knowledge of how to build a systematic process to achieve long-term sustainable growth, so I created my own course, since I know that working one-on-one with me is also too expensive for most people.
Especially if you’d look at students or junior marketeers, for whom I created a proper beginner growth hacking course that will teach you 20% of the knowledge that is necessary to achieve the first 80% of the results.
Growth hacking does have some noticeable differences from marketing, as outlined on your website. How should clients make the decision between working with you, a growth hacker, instead of with a marketer?
The choice between working with a growth hacker versus a digital marketer is not a one-or-the-other choice; the fields are very different in focus and actually complementary to each other. Growth hacking is great to kickstart growth, test new opportunities and see what tactics work. Marketeers should be there to continue where the growth hackers left off: build out those strategies, maintain customer engagement and keep tactics fresh and relevant. You shouldn’t hire a growth hacker to maintain your marketing strategies; they’re excited to make new growth steps and would get bored when they can’t test new ideas.
Most of the time, I help a client get up to speed, show which opportunities are valuable and give them a strategy to execute. Then I hand it over to marketing for the long-term execution and coach them on the execution, and step back in when there’s a need for new growth input.
What are some common misconceptions about growth hacking?
A lot of growth hackers still present growth hacking as a perfect approach, where thanks to our data-driven way of working we can always make the right moves. But that’s not true: The hard data that you see in your analytics tools, can only tell you what is slowing down your growth, but not why your growth slows down there. While the “why” is what we build our experiments on top of … many growth hackers just fill that with their own assumptions to keep their speed, but that’s not sustainable long term.
Next to the hard data, you need soft data: the why. And that comes from talking with customers, running hypothesis-focused experiments (not result-focused) and maybe by looking at your feedback from customer support or surveys. Every time I implement a soft data feedback loop with my clients, I see that we increase our experiment effectiveness from 1 in 10 up to 1 in 3.
What trends are you seeing in the growth hacking world right now?
The growth industry is definitely maturing. Less hacks, more teams, more focus on velocity. Everybody within the field is getting to know the best practices very quickly and implementing them even quicker. So then what? We need more knowledge, more qualitative feedback and a more systematic approach to scale up our impact, to be able to rise above best practices and implement truly relevant and sophisticated tactics for our businesses. Since the field is maturing, you see people starting to get rid of the shoestring tools.
For this reason, I’m currently rolling out a growth management tool for growth teams, called Upgrow, where teams can more easily manage their experiment velocity, report to stakeholders with the click of a button and make sure that they systemize the knowledge retention from their articles to build companywide knowledge. And you see that mature growth teams need this kind of software to really level up and manage these trends that are putting stress on their process due to the growth of their company.
What do startups continue to get wrong?
Most startups just keep perfecting their product forever-and-ever: “Just this one extra feature and then we go live.” I can understand that, since north-star metrics, NPS scores and product-led growth are dominating the conversation around startup growth nowadays, but let me be real: You will never be fully done. There will always be a next feature. And you will only have a benefit if you grow alongside your customers. Put a “coming soon” on your website for the features that are in the making, and just start selling and scaling up your growth efforts: Different channels bring different kinds of users, who will have new demands, so you have to be adapting all the time. Not just now.
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Growth leaders used to build key relationships across a company while working together in a real-life office. Those relationships could carry over through the pandemic, but let’s say you’re a new company and you’re remote-first.
How do you build this complex collaboration from scratch?
Growth marketer and investor Susan Su tells us that the solution is not just more software tools. In the interview below, she says that after the pandemic, startup founders will need to develop a mentality that places growth at the center of company strategy.
Consultants and agencies can be great additions to this effort, especially if they have previously solved the types of problems you face. (In fact, TechCrunch is asking founders who have worked with growth marketers to share a recommendation in this survey. We’ll use your answers to find more experts to interview.)
Su is currently the head of portfolio strategy for Sound Ventures, previously a growth leader at Stripe and the first hire at Reforge. She also shared a few thoughts on market opportunities after the pandemic in the full interview below. E-commerce is mainstream for good, she says, even as we all try to step away from screens more often. However, many social and mobile sectors are mature, and it’s going to be even harder for startups to compete as real-world activities absorb more time.
Don’t forget: Susan Su will also appear at our Early Stage virtual event on July 8 (and answer questions directly).
How are you seeing startups manage changes in user engagement as more people exit pandemic lockdowns and adjust their daily lives?
As we exit the pandemic, I expect that we’ll see a natural and obvious spike in some consumer activity that will roll up to midsized businesses and enterprises. Just like with the onset of the pandemic, we’ll see uneven results across sectors:
E-commerce boomed during the pandemic but was really an augmentation of an already-accelerating trend toward digital commerce and streamlined logistics. I don’t think we backtrack from e-commerce because habit formation around online shopping has been building for years; we would be backtracking to an age long before 2020, and that’s not going to happen.
New social-mobile experiences also boomed during the pandemic, but there’s still a valid question around whether 15 months or so is enough time to become part of the ingrained infrastructure of daily life. We are living in an age of mature platforms, so every new service is stealing time away from an existing service. As with pre-pandemic growth, their success rests upon fast-accumulating network effects and great, sticky core product experience. Now that we have parks, friends and dinners out calling to us again, it’s a real test of how compelling some of these new value propositions really are, and whether they can continue to demonstrate their relevance in a more hybridized online-offline world.
That said, the pandemic was an enormous constraint on human society and [the] economy, and these kinds of constraints often breed innovation that doesn’t go away. We will evolve, but we can never go back. It sounds cheesy but it’s true.
Some aspects of the pandemic, like remote work, appear to have radically changed certain industries. How will these societal changes impact how the typical startup thinks about growth?
Growth will always be growth — that is, a process of iterative experimentation to identify and solve customer problems, and then scale those solutions in order to reach and convert bigger and bigger audiences. Platform changes like iOS 14 or Facebook’s periodic algorithm adjustments will have a bigger impact in the near term on the technical functioning of growth, and these aren’t specifically pandemic-related.
One area to watch is how growth teams are built and operated. Growth is a horizontal function that touches many different parts of the org, including product, engineering, marketing, comms and design. Many startup teams have already been working with collaboration tools even while they sat in the same office, but growth is about more than just using tools. The most effective growth leaders succeed by building relationships across the organization; it’s like the fable of Stone Soup — you’re creating this meal that will feed everyone, but you also need each person to bring a pinch of salt, or a dash of pepper, or one carrot, and that requires socialization and relationship-building. I’ll be very interested to see how new growth leaders onboard remote-only teams and what approaches they take to this “networking” need within the function.
From the days of growth hacking on social platforms, growth marketing is now an established part of the world. But it’s not necessarily the main expertise of a startup founder, even if it needs to be. So, how should they think about addressing growth marketing in 2021? What are the essentials they should do in their roles?
Every founder needs to have a growth mentality. They don’t need to memorize all the right buttons to push in an ads dashboard, but they need to be familiar and comfortable with the core work of gap-finding. That said, founders are by definition entrepreneurial — their company exists because they saw an opportunity that no one else did, and this is the fundamental work of growth as well.
Founders will fail if they adopt a mentality that someone else can or should do it for them. The founder’s job is to supply ambition and opinions, and then magnetize high-quality talent to come and pull the levers and bring their creative vision to life. There are many people who can do growth marketing — that is, they know how the platforms work, they understand the rules and the playbooks. But there are very few who can come up with truly visionary strategies that change the game altogether — those people become founders, and those companies become household names. So for a founder, I’d say the most important growth work is to continue to know your market and customer better than anyone else in the whole world, have an opinion about what’s missing, and work to bring the best talent to come in alongside you and be a thought partner, not just a button pusher.
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With limited resources, how should early-stage companies think about what to focus on?
This is going to depend on the goals of your company. Are you planning to raise money and need to demonstrate certain KPIs? Are you bootstrapping and need to keep the lights on? Resources should always be allocated to the most strategic purposes, with the longest-term view you can afford. For some companies, this could mean forgoing revenue to focus on viral or word-of-mouth-driven user acquisition to demonstrate to future investors that there’s something special here. For other companies, perhaps in lower volume categories like enterprise, it’s about bringing a few strategic logos into the family as a signal to later customers and other stakeholders, including future employees and investors.
One thing that early-stage companies should always be focused on is building a top-shelf employer brand. You will only ever be as good as the talent you attract to your company, and interestingly growth can actually play a role in this. The best designers, engineers and product people are often flowing toward the companies that have the best growth. In that way, it’s a highly strategic role and function.
What do startups continue to get wrong?
You can’t truly outsource growth or any other core function; you can’t tack on customer acquisition after product development. At the end of the day, if you really think about it, all a company is, is a customer-acquisition engine. This needs to be core; wake up every day and think about growth, not just to hit revenue or user KPIs, but to build the company that the best people are clamoring to work at. It’s not about finding someone sufficient to solve your near-term problems; it’s about framing problems in a way that’s so compelling to the most creative, hardest-working people so that they can’t get it out of their heads. Go for talent moonshots, and figure out how to close them. The rest will fall in line from there.
When should a founder feel comfortable getting help from an outside expert or agency?
Anytime. Agencies are great. They are an extension of your talent, and the best agencies aren’t selling you — they have to be sold on your problem because they have their pick of companies just like yours. That’s the agency or outside expert you want to work with, because they’ll have a priceless perspective from the other best-in-class founders and teams they’ve worked with that they can bring to your challenge. Any agency can run Facebook ads (it’s not rocket science), but you want to find the team that’s solved the gnarliest problems for your hero companies. Then you’ll get not just an ads manager, but a teacher.
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Over the years, we’ve seen a lot of B2B companies apply ineffective demand generation strategies to their startup. If you’re a B2B founder trying to grow your business, this guide is for you.
Rule #1: B2B is not B2C. We are often dealing with considered purchases, multiple stakeholders, long decision cycles, and massive LTVs. These unique attributes matter when developing a growth strategy. We’ll share B2B best practices we’ve employed while working with awesome B2B companies like Zenefits, Crunchbase, Segment, OnDeck, Yelp, Kabbage, Farmers Business Network, and many more. Topics covered include:
We often crack growth for companies that didn’t think it was possible, based on their prior experience with agencies and/or internal resources. There are many misconceptions out there about B2B growth, rooted in the misapplication of B2C strategies and leading to poor performance. Study the differences and you’ll develop a filter for all the advice you get that’s good for one context (ex: B2C) but bad for another (ex: B2B). This guide will get you off on the right foot.
The best growth strategy for your company ultimately depends on whether you’re in an incubation, iteration, or scale stage. One of the most common mistakes we see is a company acting like they’re in the scale phase when they’re actually in the iteration phase. As a result, many of them end up developing inefficient growth strategies that lead to exorbitant monthly ad spends, extraneous acquisition channels, hiring (and later firing) ineffective team members, and de-emphasizing critical customer feedback. There is often an intense pressure to grow, but believing your own hype before it’s real can kill early-stage ventures. Here’s a breakdown of each stage:

Incubation is when you are building your minimum viable product (MVP). This should be done in close partnership with potential customers to ensure you are solving a real problem with a credible solution. Typically a founder is a voice of the customer, as someone who experienced the problem and sought out the solution s/he is now building. Other times, founders enter a new space and build a panel of prospective buyers to participate in the product development process. The endpoint of this phase is a working MVP.
Iteration is when you have customers using your MVP and you are rapidly improving the product. Success at this stage is rooted in customer insights – both qualitative and quantitative – not marketing excellence. It’s valuable to include in this iterative process customers with whom the founder(s) have no prior relationship. You want to test the product’s appeal, not friends’ willingness to help you out. We want a customer set that is an accurate sample of a much larger population you will later sell to. The endpoint of the iteration phase is product/market fit.
Scale is when you have product/market fit and are trying to grow your customer base. The goal of this phase is to build a portfolio of tactics that maximize market penetration with minimal – or at least profitable – cost. Success is rooted in growing lifetime value through retention and margin, maximizing funnel conversion to efficiently convert leads to customers, and finding repeatable tactics to drive prospective buyers’ awareness and consideration of your product. The endpoint of this phase is ultimately market saturation, leading to the incubation and iteration of new features, customer segments, and geographies.
Here’s a list of B2B customer acquisition tactics we commonly employ and recommend. Later in this article, we’ll connect each channel to the growth stage it’s best used in. This list is generally sorted by early stage to later stage:
1. Leverage your network. This is particularly valuable for founders who are building a product based on their own past experience.
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It was the perfect storm when CEO and Founder Liam Reynolds finally decided to start TrueUp, a data-driven growth marketing agency/consultancy based in London. After decades of working for large creative advertising agencies, Liam quit his job right around the beginning of Silicon Valley’s growth hacking trend and plunged headfirst into running growth for early-stage startups.
TrueUp has since evolved from a one-man shop into an award-winning agency with a team of dedicated data, paid marketing and conversion specialists. Learn more about how they collaborate with clients and help them develop short- and long-term growth frameworks.
“Rather than just saying ‘Look at these amazing results we’ve achieved,’ we would say, ‘Look, these are your growth opportunities, this is the process you need and here’s the framework unlock your true potential,’ We would build business models around this to show the opportunity in numbers, revenue and ROI.
Our approach to growth is anchored in delivering the right message to the right target audience in the right channel at the right time. It sounds simple but we’re amazed at how wrong people get this.
So we’ve created our own bespoke methodologies and frameworks to really explore and identify these hidden killer messages that drive action. We’ve built our own tools that allow us to do a lot of high-tempo, high-intensity testing.
It’s quite common that we have 500 to 600 tests running concurrently on Facebook for any given client. We’re continuously testing, learning, iterating, improving. As a result we’ve achieved some amazing results for our clients.”
“We approached True Up to help us establish and scale a UK paid marketing function. The team was highly professional from their initial pitch through the end of the project.” Maninder Saini, SF, International Operations Manager, Quizlet, Inc.
“For earlier stage startups, it’s to focus on achieving product-market fit and having awesome user experiences before worrying about growth. We worked with and mentored a lot of startups that immediately jump to, “Look I need to get X number of customers in X months.” However their products/services are often seriously lacking. This creates very weak foundations for growth. So their efforts would be better spent on creating products that genuinely meet a customer need. Once they’ve achieved product-market fit, it’s to communicate benefits not features. There’s always at least one killer message that cuts through but more often than not it’s hidden and not what the founders think it is. So a structured test program to explore this is also very much needed!”

Below, you’ll find the rest of the founder reviews, the full interview, and more details like pricing and fee structures. This profile is part of our ongoing series covering startup growth marketing agencies with whom founders love to work, based on this survey and our own research. The survey is open indefinitely, so please fill it out if you haven’t already.

Yvonne Leow: Tell me about how you got into growth marketing and why you decided to start TrueUp.
Liam Reynolds: I started my career at a data marketing company called Dunnhumby. They were famous for managing the data science and intelligence behind TESCO’s Club Card, a very large loyalty program in the UK.
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NoGood CEO Mostafa Elbermawy describes how they evaluate a client’s growth challenges by quoting Zen teacher Hunryu Suzuki: “In the beginner’s mind there are many possibilities; in the expert’s mind there are only a few.” Rather than deferring to in-house playbooks, NoGood adopts an open mind combined with a methodical, data-driven approach to find untapped growth opportunities for its clients. Learn more about how NoGood came to be and why they’re willing to say no to potential clients.
“Our work is methodical. It’s intentional. We have to talk about it. We are very transparent about what we do and it’s completely process oriented. Hacking is a misnomer. Growth is not about clever shortcuts. It has to be sustainable and repeatable, and if it’s not, we won’t do it.”
“They helped us launch our business. They are our CMO and our CTO. Would recommend to anyone.” Erica Tsypin, Washington D.C., Co-Founder & COO, Steer
“Our success in jumpstarting Steer’s business is one of our proudest accomplishments this year. Steer is an electric car subscription startup that asked us to increase their activations. Basically, our job was to generate new active members, which not only meant encouraging more users to download the app, upload a license, and get approved, but it also meant delivering a car to a member’s door, having them drive that car and leaving a review. We were able to demonstrate signup traction for Steer and help them launch in under three months.”

Below, you’ll find the rest of the founder reviews, the full interview, and more details like pricing and fee structures. This profile is part of our ongoing series covering startup growth marketing agencies with whom founders love to work, based on this survey and our own research. The survey is open indefinitely, so please fill it out if you haven’t already.

Yvonne Leow: To kick things off, how did you get into growth?
Mostafa Elbermawy: Well, I went to school for archaeology, but hieroglyphics weren’t paying the bills, so I taught myself how to code and started a web design studio after college. I started building websites for clients, and they started asking me how to drive more users to their sites to help grow their business.
I started tinkering with growth out of curiosity, and eventually joined the digital experience team at American Express. That job helped me gain some marketing and growth experience, and I ended up falling in love with that part of the job.
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Every company’s online acquisition strategy is out in the open. If you know where to look.
This post shows you exactly where to look, and how to reverse engineer their growth tactics.
Why is this important? Competitive analysis de-risks your own growth experiments: You find the best growth ideas to adopt and the worst ones to avoid.
First, a warning: Your goal is not to repurpose another company’s hard work. That makes you a thief. Your goal is to identify other companies who face the same growth challenges as you, then to study their approaches for solutions to draw from.
As I walk through uncovering a competitor’s tactics, keep in mind which competitors are worth looking at: For instance, you should rarely over-analyze early-stage companies. They’re unlikely to be methodical at growth.
Meaning, if you blindly copy their site and their ads, it’s possible you’ll be copying tactics that are not actually responsible for their growth. Their success may instead be from network effects or other hidden factors.
Instead, it’s safest to get inspiration from companies who’ve sustained high growth rates for a long time, and who face the same growth challenges as you. They’re likely to have sophisticated growth operations worth studying deeply. Examples include:
If these aren’t your direct competitors, don’t worry. You don’t need to audit a direct competitor’s tactics to get incredibly valuable insights.
You’ll gain useful insights from auditing the user acquisition funnel of any company who has a similar audience and business model.
Examples of audiences:
Audiences matter because their behaviors and needs differ wildly. Each requires its own growth strategy. You want to audit a company whose audiences is similar to yours.
You also want to ensure the company shares your business model. Examples include:
Each model may necessitate different ads, landing pages, automated emails, and sales collateral.
Never implement another company’s tactics blindly.
There’s an effective process for growth analysis, and it looks like this:
Here’s a brief example before we dive into tactics.
Let’s pretend we’re a SaaS company offering consumer banking tools, and that we’re struggling to get users to onboard our app. Our hypothesis is that visitors are bouncing because they don’t trust us with their sensitive information.
Our first step is to define both our audience and our business model:
Our next step is to look for companies who share those two aspects. (We can find them on Crunchbase.)
Once we have a few in hand, we look for how they handle customers’ sensitive information throughout their funnel. Specifically, we audit their:
It’s time to learn how we audit all that. I’ll share how our marketer training program teaches marketers to do this on the job.
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Growth marketing is critical to a startup’s survival, but it’s not always clear how to successfully pull it off. How do you jump the chasm from one to 10 million customers? Should you recruit an in-house growth team or hire an agency? How do you actually get content marketing to work? How much money should you spend before writing off or doubling down on a marketing channel? What does it take to build an extraordinary team at every stage of your startup?
There isn’t a silver bullet when it comes to growth, but we are tapping some of the most brilliant minds in growth marketing to share their experiences and advice to entrepreneurs.
Last month, we launched an initiative to find the industry’s best growth marketing agencies, and since then entrepreneurs from all around the world have submitted their nominations.
If you haven’t already, take two minutes to nominate a growth marketing agency that has helped your company scale and reach its target customers.
We’re zeroing in on a short list of top firms, and we’ll begin publishing their profiles in the next few weeks, but founder recommendations, like yours, help determine who we feature.
Similar to our work with startup lawyers and brand designers, our goal is to make it easier and faster for entrepreneurs to find the right service provider, but without real and relevant founder recommendations, we can’t accomplish our mission. Growth is the latest iteration of Verified Experts (with more to come).
Help us support early-stage startups by nominating a growth marketing agency you’ve worked with.
Have any questions? Email ec_editors@techcrunch.com
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