growth marketing
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When you are the founder of a young startup, it is always very hard to gauge the right amount of effort to dedicate to marketing. Botch it and you risk looking unprofessional. Hire a traditional agency and you might be wasting time and money.
Australian growth marketing agency Ammo, in contrast, wants to make sure that its clients aren’t overinvesting nor underinvesting. Geared toward tech startups, it boasts that it has “supercharged the growth of over 200 innovative businesses,” from fintech and SaaS to hardware.
Ammo is based in Perth and an active member of Western Australia’s startup community, where it is “very highly regarded,” in the words of the survey respondent who recommended it to TechCrunch. But if that person decided to work with Ammo, they said it’s because “their results spoke.” (If you have growth marketing agencies or freelancers to recommend, please fill out our survey!)
After reading this, we reached out to Ammo’s director Cam Sinclair for insights on early-stage brand development, marketing readiness and more. Check out our interview below:
Editor’s note: The interview below has been edited for length and clarity.
Can you give us an overview of Ammo?
Cam Sinclair: Ammo is a growth marketing team based in Perth, Western Australia. We work with startups and innovative businesses to help them set and reach their growth goals.
Cam Sinclair. Image Credits: Aline Kuba(opens in a new window)
We’ve been in this community for seven years now, and have a small, lean team from a variety of backgrounds — none of which are traditional marketing.
As a nerdy kid I loved tech and was fascinated by how business works. I always knew I wanted to find some way to help founders and innovators get their great ideas out into the world. After working in political campaigns, I realized that many of the skillsets overlapped with what startups need: moving fast, being lean, communicating well, being adaptable and staying flexible.
That inspired me to grow an “anti-agency” where startup founders could genuinely feel like they had someone on their team who understood their challenges and the risks they were taking.
How do you collaborate with startups?
Our services cater to every stage of the founder journey. When you’re starting, you’ll need a brand, strategy and the marketing infrastructure to reach early customers. As you’re growing, you’ll need ongoing marketing campaigns and automation that bolsters your funnel. As you’re maturing, you’ll need the broader reach that PR and ongoing strategic advice provides.
We like to keep engagements as flexible as possible because startups are always discovering new marketing opportunities or customer needs. Some relationships are ongoing, others are quick projects completed in a week. Our long-term relationships start with a growth strategy workshop, where we identify a north star metric so that everyone is pulling in the same direction from day one.
Our workshops help startup teams design a customer journey using the pirate metrics framework and turn that into a clear, step-by-step action plan which they can implement or outsource.
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There’s a survey on your site that encourages companies to check whether they are “ready for growth marketing.” What are the high-level points that make a company ready?
It’s really about having a small number of early fanatical customers — evangelists. Many people call it product-market-fit, but it’s really customer fit.
There is little point in lighting a rocket under a startup to grow and reach a wide audience without a clear, confident direction. Sure, you might get somewhere fast, but where are you going?
We’ve made the mistake of taking on clients who were too early for growth, so we know how important it is to say “no” when it’s not a good fit. We can direct all the traffic in the world to your website, but without customer fit you’ll be fighting for every sale.
Startups need to get a few things right to be primed for growth. Not every startup will be ready for what we can do for them. We’re focused on our own customer fit too.
For one-on-one work, who are your typical clients?
Our most successful relationships are with startups who have already established customer fit and are looking to grow quickly. We work with B2B and B2C SaaS companies, as well as more traditional businesses who are looking to disrupt the way things are done in their industry.
We’ve grown startups in Australia and abroad, including neuroscience startup Humm, based in Berkeley, California. We worked with them to identify early customers and preorder channels while they were gathering initial investment, build a learning/experimenting system within the team as they grew and, more recently, provide advisory at a strategic level.
What mistakes do you help startups avoid when it comes to branding?
After working with over 230 startups, we know what works and what doesn’t. Our clients work with us because they know we can help them avoid the pitfalls that inexperienced founders regularly fall into and make the most of the tight budgets that startups run on.
Marketing agencies are taking money that startups don’t have to build brand identities that startups don’t need. We would much prefer to see those resources invested into building their product and talking to their customers.
That said, it’s important for a landing page or slide deck to be believable to customers, investors and partners — and when startups underinvest in their branding, people are less likely to hand over their attention, email address and money.
For example, some clients often don’t even have suitable logo files or a wide enough color palette to create websites that effectively convert people into customers. If someone can’t clearly see your “sign-up” button when they land on your website because everything on your website is blue, it doesn’t matter how good your product or service is.
Can you explain why you advise startups to create a “minimum viable brand”?
The temptation in the startup world is to use a freelancer through an online marketplace (or even worse — letting an overenthusiastic employee create a logo in PowerPoint). But this usually results in a surface-level logo design without any consideration for how it might develop over time or fit within a larger brand identity.
Other startups might work with an agency to create a brand identity, and this can lead to brand overkill — stationery kits, photography, lofty mission statements and endless meetings. None of which pre-seed startups need yet. This process wastes time and money better spent elsewhere and traps pivoting startups with an expensive brand that can’t evolve as they do.
We take branding processes used by world-class agencies and distill it down to the core parts of the brand you need right now. This leads to a minimum viable brand identity that’s built to grow and created with the expectation that it will change as your startup does. It’s inspired by lean methodology and the minimum viable product (MVP) — it’s built to challenge assumptions and catch the attention of customers without overinvesting.
What’s the process you follow to help startups develop their minimum viable brand?
Initially we help them come up with a name.
Naming is important so we generally invest time into this part to avoid changing it in the future if possible. We want to make sure it meets the basic principles of distinctiveness, brevity, appropriateness, easy spelling and pronunciation, likeability, extendibility and protectability (based on Marty Neumeier’s branding-in-business book Zag).
From there we design a logo. A good logomark (the “icon” part of the logo) is generally figurative and not literal. It should be scalable, simple and work in multiple environments including single color black or white. The logo is then complemented with brand color selections, fonts and simple imagery direction to create a basic but useful brand guide.
Most importantly, we believe your startup’s brand guidelines should be available publicly online, rather than in a PDF hidden in a folder on your Dropbox. Somewhere that you can direct your team members and partners to so you can ensure everyone can maintain brand consistency.
How does Ammo compare to having an in-house CMO?
Like a CMO, we’re strategic. But unlike a CMO, we have experience with hundreds of startups across dozens of industries — we can pull insights and lessons from unexpected places when we’re working with clients.
While we align closely with commercial goals like an in-house CMO, we also know the importance for startups to move quickly. That’s why everyone at Ammo rolls up their sleeves and gets things done for our clients.
We don’t have the mindset of taking months to develop an annual marketing strategy, we want to help our clients get in front of customers quickly, collect valuable data along the way and stay nimble to adapt when they need it.
How do you and your clients measure your impact?
At Ammo, we don’t measure time, we measure outcomes. At the start of every project we define what success looks like with the client. Every client is different, and we’re responsive to that. We check back in with ongoing clients in monthly meetings to see how we’re tracking toward the success metric we agreed on, adjusting as necessary.
All of this is measured through quantitative analytics, qualitative feedback from customers and gut instinct.
In the past we have described our role as making ourselves obsolete — that our clients would grow large enough to be able to hire their own in-house marketing team. Today we still retain many of these client relationships in different ways, by providing more strategic advice. Those long-term relationships are the greatest indication to us that we’ve had a valuable impact.
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“I’ve seen startups spend thousands of dollars inefficiently as a result of not having optimal signal in their paid acquisition campaigns. I’ve also spent millions at companies such as Postmates refining our signal to the best possible state,” says growth marketer Jonathan Martinez in a guest column for Extra Crunch this week. “I’d like every startup to avoid the painful mistake of not having this set up correctly, instead making the most of every important ad dollar.”
The TechCrunch team has been busy this past week, especially with Disrupt next week and the iOS 15 release date quickly approaching. If you haven’t already registered for Disrupt, it’s not too late to get a ticket. We’re excited for all of the sessions, including “The Subtle Challenges of Assessing Product-Market Fit” on Tuesday, September 21 from 2:05 PM – 2:45 PM EDT the Extra Crunch stage. The marketing world was full steam ahead this past week, Martinez covered how to optimize signal and Miranda Halpern spoke with Vivek Sharma, CEO of Movable Ink about the impact that iOS 15 will have on email marketers. We also had guest posts from Bryan Dsouza of Grammarly and Xiaoyun TU of Brightpearl. More details below.
Help TechCrunch find the best growth marketers for startups.
Provide a recommendation in this quick survey and we’ll share the results with everybody.
If you didn’t already hear, we’re giving away one free ticket to Disrupt, through the Experts survey. Check out the schedule for Disrupt, and read on to learn about the giveaway details:
Marketer: Andrew Race, Juice
Recommended by: Orin Singh, Merchant Industry
Testimonial: “We were referred to Juice by a family friend of my company’s owner and as a personal courtesy they said they were giving us their best guy. Naturally we thought that is what everyone says but they were not kidding. Andrew was singularly leagues above our previous marketing company. Having someone so knowledgeable and willing to learn a new industry proved to be the turning point for us.”
In growth marketing, signal determines success: Martinez learned from his mistakes, and share the lessons learned with us. From selecting the signal, to how to enhance it, Martinez covers key aspects including how to take advantage of iOS 14. He says, “So how do you stay ahead and continue moving the needle on your growth marketing campaigns? First and foremost, constantly question the events you’re optimizing for. And second, leave no stone unturned.”
Marketers should plan for more DIY metrics as iOS 15 nears: The release of iOS 15 will change that playing field for marketers. They’ll have to rely on metrics that use zero and first-party data rather than relying on email open rates as the main metric. Miranda spoke with Sharma about how this release will impact the industry and what marketers should focus on. One tip from Sharma is, “Focus on down funnel metrics like clicks and conversions — that’s what it really comes down to and that’s the truest indicator of engagement.”
(Extra Crunch) Demand Curve: How to get social proof that grows your startup: Nick Costelloe, head of content at Demand Curve, dives into social proof and how startups can use it to their advantage. On social proof, Costelloe says, “Have you ever stopped to check out a restaurant because it had a large lineup out front? That wasn’t by chance. It’s common for restaurants to limit the size of their reception area. This forces people to wait outside, and the line signals to people walking past that the restaurant is so good it’s worth waiting for.”
(Extra Crunch) 5 things you need to win your first customer: Dsouza, product marketing lead at Grammarly, walks us through how to win your first customer. He includes explanations, how-tos, and practice use cases. Dsouza says,” . . .ask any founder what really proves their startup has taken off, and they will almost instantly say it’s when they win their first customer.”
(Extra Crunch) 4 ways to leverage ROAS to triple lead generation: TU, global director of demand generation at Brightpearl, walks us through ways to use return on advertising spending (ROAS). She says, “When you choose a return metric, you need to make sure it matches your company goal without taking ages to get the data.”
Tell us who your favorite startup growth marketing expert to work with is by filling out our survey.
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When people are uncertain, they look to others for behavioral guidance. This is called social proof, which is a physiological effect that influences your decisions every day, whether you know it or not.
At Demand Curve and through our agency Bell Curve, we’ve helped over 1,000 startups improve their ability to convert cold traffic into repeat customers. We’ve found that effectively using social proof can lead to up to 400% improvement in conversion.
This post shares exactly how to collect and use social proof to help grow your SaaS, e-commerce, or B2B startup.
Surprisingly, we’ve actually seen negative reviews help improve conversion rates. Why? Because they help set customer expectations.
Have you ever stopped to check out a restaurant because it had a large line of people out front? That wasn’t by chance.
It’s common for restaurants to limit the size of their reception area. This forces people to wait outside, and the line signals to people walking past that the restaurant is so good it’s worth waiting for.
But for Internet-based businesses, social proof looks a bit different. Instead of people lining up outside your storefront, you’re going to need to create social proof that resonates with your target customers — they’ll be looking for different clues to signal whether doing business with your company is “normal” or “acceptable” behavior.
People love to compare themselves to others, and this is especially true when it comes to the customers of B2B businesses. If your competitor is able to get a contract with a company that you’ve been nurturing for months, you’d be upset (and want to know how they did it).
Therefore, B2B social proof is most effective when you display the logos of companies you do business with. This signals to people checking out your website that other businesses trust you to deliver on your offer. The more noteworthy or respected the logos on your site, the stronger the influence will be.
Depending on the type of SaaS product or service you’re selling, you’ll either be selling to an individual or to a business. The strategy remains the same, but the channels will vary slightly.
The most effective way to generate social proof for SaaS products is through positive reviews from trusted sources. For consumer SaaS, that will be through influential bloggers and YouTubers speaking highly of your product. For B2B SaaS, it will be through positive ratings on review sites like G2 or Capterra. Proudly display these testimonials on your site.
E-commerce brands will typically sell directly to an individual through ads, but because anyone can purchase an ad, you’re going to need to signal trust in other ways. The most common way we see e-commerce brands building social proof is by nurturing an organic social media following on Instagram or TikTok.
This signals to new customers that you’ve gotten the seal of approval from others like them. Having an audience also allows you to showcase user-generated content from your existing customers.
There are five avenues startups can tap to collect social proof:
Here are a few tactics we’ve used to help startups build social proof.
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Apple is planning to remove developer access to important user data as part of its iOS 15 release on Monday, leaving email marketers in a dilemma about how they will figure out metrics. To find out how the industry is approaching this problem, we spoke with Vivek Sharma, CEO of Movable Ink, a software company that helps marketers act on the data they’re collecting.
This conversation builds on our Extra Crunch post from August exploring how email marketers can prepare for Apple’s Mail Privacy Protection changes.
The game-changer for email marketers with this update is that as an Apple Mail user, you’ll have the option to hide your IP address.
How can marketers pivot their tactics to remain in control of their metrics? Sharma feels we’ll see more focus on downstream metrics rather than the open rate — on clicks, conversions and revenue. “That sounds great and everything, but you have less of that data. But by definition, that funnel kind of narrows; there are fewer people to get to at that point, so it might take you longer to know if something is working or not working for you.”
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Sharma says zero-party data is something that businesses have been focused on. “There are two components: There’s ‘open’ as a metric, and there’s some of the information you’re getting at open time, like the IP address, the time of day, and the inferred weather. Things like the IP address, time of date, etc. are perceived as data leakage. These are just a couple of the data points that marketers will lose access to. Therefore they are using first and zero-party data which they have already been investing in.”
The challenge, according to Sharma, is: How can marketers collect zero-party data in an interesting, visually appealing way, and then personalize its contents for every customer at scale?
One way that Movable Ink has collected zero-party data is displayed below:
Image Credits: Movable Ink
Sharma says, “Everything in here is a polling question: ‘What do you typically shop for?’ ‘What’s your shoe size?’ And they’re giving you loyalty points in return, so there’s an exchange of value happening here. They’re learning about you in a clear way and giving you an easy way to engage with the brand you’re interested in.”
Once you have the data, the question is: How do you use it? Below we see an example from JetBlue.
Image Credits: Movable Ink (opens in a new window)
Sharma outlines three takeaways from iOS 15 for email marketers:
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Companies typically have to settle on strategies that align with their customers, employees, investors, and regulators. The more they know about how the other side will decide, the clearer their own strategies become.
If regulators always prefer choice for consumers, then it is easy for a platform to allow multiple payment choices: Shopify allows multiple payment options from its partners, Apple doesn’t.
By regulatory intervention, it will have to now.
Nash equilibrium is a fascinating, post-facto explanation for some of the interesting decisions you will often see in business.
In simple terms, Nash equilibrium states that if you have clarity on the other side’s decision, you can make yours without regret. In other words, there is no incentive to change strategy once each side knows what the optimal position of the other side is, in their combined transaction.
All physical products cannot escape retail, because ignoring retail means a smaller serviceable market. But it is a choice companies can make.
I see this playing out every weekend at home. I don’t mind reading a book alone or watching Netflix with my kid, but when I am available for Netflix and my kid decides to read a book, it is a bummer.
In DTC, how companies decide their omnichannel strategy depends on how well they know what their customers’ choices are and what their ideal strategy will be. In many transactions, constraints are actually good forcing functions — they narrow down choices and help you arrive at an equilibrium faster and cheaper.
The marketing and public-market filing languages make for a fascinating read into the minds of companies.
When Warby Parker filed its IPO prospectus last month, the company referred to its digitally-native status in the past tense. The model was effectively flipped in 2020, as its share of online sales to total sales dropped from 65% to 40%. Meanwhile, its physical store count increased from 126 to 145.
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Major gains in online advertising have boosted valuations for adtech startups since the pandemic began, but one insider says investors are missing the party.
“Adtech is having a moment,” writes industry veteran Casey Saran.
“And while much of the oxygen has been soaked up by large legacy companies hitting the public market, there have been smaller deals that indicate a hunger for better creative adtech.”
Saran shares five reasons “why VCs should consider ratcheting up their investment into adtech startups building the next generation of creative tools.”
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On Wednesday, September 22 at 9:05 a.m PT, I’m moderating “The Path for Underrepresented Entrepreneurs,” a panel discussion at Disrupt 2021.
Our conversation will examine some of the unique challenges facing founders from historically marginalized groups, the strategies they used along the way, and the disruptive changes we need to consider if we want to see fundamental change.
I’ll be speaking with:
I hope you’ll attend; we’ll take audience questions after our discussion concludes. Thanks very much for reading Extra Crunch this week, and have a great weekend.
Walter Thompson
Senior Editor, TechCrunch
@yourprotagonist
Image Credits: AndrewLilley (opens in a new window) / Getty Images
Congratulations on shipping your product, but how much do you know about your target customers?
Companies that haven’t created an ideal customer profile and performed a SWOT analysis are making big bets on guesswork and intuition. Sometimes that works out, but more frequently, it leads to tears.
In a guest post that walks readers through the fundamentals of creating customer personas that map to your company’s goals, Grammarly product marketing lead Bryan Dsouza shares five basic requirements for customer acquisition.
“Understanding and executing on these things can guarantee you that first customer win, provided you do them well and with sincerity,” he says.
“Your investors will also see the fruits of your labor and be comforted knowing their dollars are at good work.”
Image Credits: joshblake (opens in a new window) / Getty Images
In school, it’s highly unethical to copy someone else’s work and pass it off as your own. In business, however, it is expected.
Xiaoyun TU, global director of demand generation at Brightpearl, wrote a comprehensive guide for how to use the key metric of return on advertising spend (ROAS) to triple your company’s lead generation.
“A ‘good’ ROAS score is different for each company and campaign,” she says. “If your figure isn’t where you’d like it to be, you can leverage ROAS data to create targeted campaigns and personalized experiences.”
Image Credits: porcorex (opens in a new window) / Getty Images
Most of us prefer to trust our instincts instead of letting automated tools help us make decisions, particularly when it comes to hiring. But that’s not smart.
If your startup relies on an ad hoc hiring process, you’re probably not tracking candidates properly, there’s likely little consistency regarding how they’re treated, and bias can play a major role in who gets hired.
It’s fine to be skeptical of automated hiring tools — but not ignorant.
Image Credits: Nigel Sussman (opens in a new window)
In yesterday’s edition of The Exchange, Anna Heim and Alex Wilhelm speculated about the conditions that could combine to cool off a hot startup market currently fueled by low interest rates and a sweeping digital transformation.
“From where we stand, the factors underpinning the startup fundraising boom appear solid and unlikely to unwind overnight. Still, no golden period shines forever, and even today’s luster will eventually tarnish.”
Image Credits: Smith Collection/Gado / Getty Images
Before news broke this week that Intuit was acquiring Mailchimp for $12 billion, the ’80s-born fintech giant’s biggest buy was spending $7.1 billion last year for Credit Karma.
In the last few years, Mailchimp “has been expanding upon its core email marketing functionality” with offerings like web design and CRM, writes enterprise reporter Ron Miller.
The industry watchers he interviewed said the move signals Intuit’s interest in acquiring and serving more SMB customers with a variety of tools:
Image Credits: Nigel Sussman (opens in a new window)
“One of my favorite long-term issues with the late-stage startup market is that it is far better at creating value than it is at finding an exit point for that accreted value,” Alex Wilhelm writes for The Exchange. “More simply, the startup market is excellent at creating unicorns but somewhat poor at taking them public.”
That’s good news for Forge Global, a technology startup that operates a market for secondary transactions in private companies, with Alex dubbing its plans to go public via a SPAC combination “perfectly reasonable.”
Image Credits: Bryce Durbin/TechCrunch
Dear Sophie,
At Burning Man a few years ago, I was arrested and charged with a misdemeanor for smoking marijuana in public (in my car) and driving under the influence.
I currently have a green card and want to apply for U.S. citizenship next year.
Can I? If so, how should I handle my criminal record?
— Remorseful About the Reefer
Image Credits: Nigel Sussman (opens in a new window)
Alex Wilhelm and Anna Heim continued their tour of U.S. cities after hitting up Chicago and Boston in recent weeks.
This time, they dug into Atlanta’s booming startup scene, which is seeing record capital inflows.
“The picture that forms is one of a city enjoying a rising tide of venture activity, boosted by some local dynamics that may have helped some of its earlier-stage companies scale for cheaper than they might have in other markets,” they write.
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A startup is a beautiful thing. It’s the tangible outcome of an idea birthed in a garage or on the back of a napkin. But ask any founder what really proves their startup has taken off, and they will almost instantly say it’s when they win their first customer.
That’s easier said than done, though, because winning that first customer will take a lot more than an Ivy-educated founder and/or a celebrity investor pool.
To begin with, you’ll have to craft a strong ideal customer profile to know your customer’s pain points, while developing a competitive SWOT analysis to scope out alternatives your customers can go to.
Your target customer will pick a solution that will help them achieve their goals. In other words, your goals should align with your customer’s goals.
You’ll also need to create a shortlist of influencers who have your customer’s trust, identify their decision-makers who make the call to buy (or not), and create a mapped list of goals that align your customer’s goals to yours.
Understanding and executing on these things can guarantee you that first customer win, provided you do them well and with sincerity. Your investors will also see the fruits of your labor and be comforted knowing their dollars are at good work.
Let’s see how:
The ICP is a great framework for figuring out who your target customer is, how big they are, where they operate, and why they exist. As you write up your ICP, you will soon see the pain points you assumed about them start to become more real.
To create an ICP, you will need to have a strong articulation of the problem you are trying to solve and the customers that experience this problem the most. This will be your baseline hypothesis. Then, as you develop your ICP, keep testing your baseline hypothesis to weed out inaccurate assumptions.
Getting crystal clear here will set you up with the proper launchpad. No shortcuts.
You are the co-founder at an upcoming SaaS startup focused on simplifying the shopping experience in car showrooms so buyers enjoy the process. What would your ICP look like?
The SWOT framework cannot be overrated. This is a great structure to articulate who your competitors are and how you show up against them. Note that your competitors can be direct or indirect (as an alternative), and it’s important to categorize these buckets correctly.
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Unlike a weak phone signal solely causing a grainy sound, in growth marketing, it can mean the difference between a successful program or a massive cash bleed. As we move toward an increasingly privacy-centric world, it is even more necessary for companies to nail down signal early on.
So what exactly is “signal” in growth marketing? It can carry many different meanings, but holistically speaking, it’s the event data in our arsenal to help guide decisions. When it comes to paid acquisition, it’s vital to optimize and pass back the correct event data to paid channels. This is so that targeting and bidding algorithms have the most enriched data to utilize.
I’ve seen startups spend thousands of dollars inefficiently as a result of not having optimal signal in their paid acquisition campaigns. I’ve also spent millions at companies such as Postmates refining our signal to the best possible state. I’d like every startup to avoid the painful mistake of not having this set up correctly, instead making the most of every important ad dollar.
When starting out, it may seem obvious to optimize toward a north-star metric such as a purchase. If spend is very minimal, that could mean that the conversion volume will be low across campaigns. On the flip side, if the optimization event is set at a top-of-funnel event such as a landing page view, the signal strength may be very weak. The reason that the strength may be weak is due to passing back a low-intent event as successful to the paid channels. By marking a landing page view as successful, paid channels such as Facebook will continue to find users that are similar to these lower-propensity users that are converting.
Let’s take an example of a health-and-wellness app with a goal of driving memberships to their coaching program. They’re just starting out with exploring paid acquisition and spending $5,000 per week on Facebook. Below is a look at their events in the funnel, weekly volume and cost per event:
Example of a health-and-wellness app and their weekly conversion volume at $5,000 spend. Image Credits: Jonathan Martinez
In the above example, we can see that there’s significant volume for landing page views. As we go down the simplified flow, there is less volume as users drop off the funnel. Almost everyone’s instinct would be to optimize for either the landing page view, because there’s so much data, or the subscription event, because it’s the strongest. I would argue (after extensive testing across multiple ad accounts) that neither of these events would be the correct pick. With landing page views as an optimization event, the users have an egregiously low propensity since the landing page view to subscription conversion rate is 0.61%.
The correct event to optimize for here would either be sign up or trial start because they have sufficient enough volume and are strong signals of a user converting to the north-star metric (subscription). Looking at the conversion rate between sign up and subscription, it’s a much healthier 10.21%, versus the 0.61% from landing page view.
I’m always a huge proponent of testing all events, as there can definitely be big surprises in what may work best for you. When testing events, make sure that there’s a stat-sig baseline that’s being followed to make decisions. Additionally, I think it’s a great practice to test events regularly early on because conversion rates can change as other channel variables are adjusted.
In certain cases, the current events that are set up aren’t optimal for paid acquisition campaigns. I’ve seen this happen frequently with startups that have long windows of time between conversion events. Take a startup such as Thumbtack, which provides a marketplace of providers who can help with home repairs. After someone signs up to their app, the user may place a request but not hire someone until a few weeks later. In this case, making flow adjustments could potentially improve the signal and data that you collect from users.
A solution that Thumbtack could implement to gather a stronger signal would be to add another step between the request being placed and hiring someone. This could potentially be a survey with propensity check questions that could ask how soon the user needs help or how important their project is from a 1–10.
Example of in-app survey responses to “How important is your project?” Image Credits: Jonathan Martinez.
After accumulating the data, if there’s a high correlation between survey answers and someone starting their project, we can start to explore optimizing for that event.
In the above example, we see that users who responded with “9” have a 7.66% likelihood to convert. Therefore, this should be the event we optimize for. Artificially adding steps that qualify users in a longer flow can help steer optimization targeting in the right direction.
Let’s imagine that you have the most ideal flow that captures large volumes of event signal without much of a delay to your optimization event. That’s still far from perfect. There are myriad solutions that can be implemented to further enhance the signal.
For Facebook specifically, there are connections such as CAPI that can be integrated to pass back data in a more accurate way. CAPI is a method of passing back web events server-to-server rather than relying on cookies and the Facebook pixel. This helps mitigate browsers that block cookies or users who may delete their web history. This is just one example. I won’t run through all the channels, but each has its own solution to help enhance event signal being passed back to it.
This wouldn’t be a column written in 2021 without mention of iOS 14 and the strategies that can be leveraged for this growing user segment. I’ve written another piece about iOS-14-specific tactics, but I’ll cover it here on a broad level. If the north-star metric (i.e., purchase) event can be triggered within 24 hours of the initial app launch, then that’s golden.
This would bring large volumes of high-intent data that would not be at the mercy of the SKAD 24-hour event timer. For most companies, this may sound like a lofty goal, so the target should be to have an event fire within 24 hours that is a high-likelihood indicator of someone completing your north-star metric. Think of which events happen in the flow that lead to someone eventually purchasing. Maybe someone adding a payment method happens within 24 hours and historically has a 90% conversion rate to someone purchasing. An “add payment info” event would be a great conversion event to use in this case. The landscape of iOS 14 is constantly changing but this should apply for the immediate future.
As a rule of thumb, incrementality checks should constantly be performed in growth marketing. It gives an important read on whether advertising dollars are bringing in users that wouldn’t have converted had they not seen an ad.
When comparing optimization events, this rule still applies. Make sure that costs per action aren’t the only metric that’s being used as a measure of success, but instead, use the incremental lift on each conversion event as the ultimate key performance indicator. In this piece, I detail how to run lean incrementality tests without swarms of data scientists.
So how do you stay ahead and continue moving the needle on your growth marketing campaigns? First and foremost, constantly question the events you’re optimizing for. And second, leave no stone unturned.
If you’re using the same optimization event forever, it will be a disservice to your campaign performance potential. By experimenting with flow changes and running tests on new events, you’ll be way ahead of the curve. When iterating on the flow, think about user behavior and events from the user’s perspective. Which flow events, if added, would correlate to a high propensity conversion segment?
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Warby Parker filing to IPO last week was one more sign that direct-to-consumer (DTC) is an extremely powerful e-commerce trend. But LA-based performance marketing agency MuteSix didn’t wait that long to build its business around scaling DTC brands.
Created in 2014 and acquired by Dentsu in 2019, MuteSix was recommended to TechCrunch by Rhoda Ullmann, VP Consumer at Sense, a Boston-based startup building a home energy monitor. “They demonstrate best-in-class expertise with Facebook and Google paid ad platforms. They also have a very smart and efficient approach to creative development that was critical to helping us scale,” she wrote. (If you have growth marketing agencies or freelancers to recommend, please fill out our survey!)
Besides Sense, MuteSix’s former and current clients include companies such as Adidas, Petco, Ring and Theragun, to whom it provides a full range of marketing services, including top-notch direct response videos. But regardless of whether you can afford this, we think you’ll learn interesting lessons from our conversation with their CRO, Greg Gillman. The key takeaway? In today’s highly competitive ad environment, both content and data are kings.
Editor’s note: The interview below has been edited for length and clarity.
What can you tell us about MuteSix as an agency?
Image Credits: MuteSix
Greg Gillman: We’ve been around for about nine years. We started out as a Facebook ad agency — as opposed to a lot of agencies that start out by saying they do everything, we decided to focus on what we were really good at. At the time, it was doing Facebook media buying for e-commerce companies. Primarily here in LA, which is kind of the hub of these companies, but also all over. And then bit by bit, we grew the organization.
At this point, we’re a little over 400 people, and we manage upward of $500 million in spend on Facebook and Google, including Instagram and YouTube. What we’ve grown into is a one-stop shop for DTC e-commerce companies: We manage all the channels that a DTC brand needs. And we’re a performance agency; everything we do is based on results. People come to us to drive revenue into their e-commerce businesses.
Why do you think that performance marketing is the right fit for DTC?
DTC entrepreneurs are more focused on immediate impact, because if they’re not selling product, there’s no large brand propping them up. So I think that doing DTC marketing requires you to be more performance focused. For agencies that work with large brands, usually it’s more about impression buying versus performance buying. They can say: I did a reach campaign today to hit 10 million eyeballs, and whatever happens happens, because at the end of the day, you just told us to do 10 million impressions. It’s different than working with a group like us that’s trying to optimize every small piece of the funnel, and being accountable for the entire funnel to drive as much sales or revenue.
What type of clients do you work with?
The majority of the companies we work with are digitally native DTC companies. We’ve mostly stayed in that lane, because we’re really good at it. That being said, we work with companies of all sizes — startups, companies that are already established, and very large companies that need to rework both their creative and their media buying strategy.
I oversee sales, marketing and partnerships, and my role is really trying to figure out which brands make most sense to partner with MuteSix. We’re looking for high-growth brands that we can scale, and we’ve learned through the years that what works well are demonstrable products that have cool user value props.
We’ve worked with lots of startups at different points in the funnel, starting from the ground up and working with them through various rounds of funding, all the way through acquisitions, including two by unicorns. But these days, ground up is tougher. I like them to have some proof of concept — putting through $10,000-$15,000 per month on Facebook or $5,000-10,000 on Google usually shows me that there’s some life to it. But I don’t want to limit us if it’s a cool idea. I talk to a lot of people who come back once they’ve proven it out a little bit.
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What kind of clients are definitely not a good fit?
It won’t be a fit if there’s no real unique value prop for the product. If it’s just another run-of-the-mill company, a consultant can charge them a lower amount of money and set up Facebook ads, but what we are looking for are high-growth businesses.
The compensation for our campaign managers is actually tied to the performance of the campaigns, so if I bring a bunch of campaigns that we can’t scale, we’re gonna have a lot of unhappy media buyers who ask: “Greg, why would we take on this brand?” It’s a business model that has helped us attract top talent, but we need to make sure that we’re bringing brands that we think we can scale.
And it’s easier than ever to start a company, but it’s tougher now to scale it and take it past the $2 million-$3 million run rate. So I always revert back to asking founders: What are five reasons why people want to buy your product? What are the five reasons that they don’t? If the entrepreneur has trouble answering this, it’s not going to work. If they can’t tell somebody why their business is good, then we’re not going to be good at selling it.
How is MuteSix different from other agencies?
I’d say the main difference is that we have a 70-person in-house video creative team; and what we’re really good at doing is shooting and coming up with performance content. Not just content that looks and feels great, but video that is reverse-engineered to sell product.
Another key component is that we have a whole data science team that is also integrated with our media buying team, and that helps companies navigate things like attribution and signal loss due to the iOS 14 update. Right now, that means focusing on looking at the whole picture rather than by channel and working on mix-modeling attribution.
What are some of the things your data team focuses on?
One of the biggest things that brands struggle with is figuring out attribution, and how you continue to spend money even though you may have lost some signal into the platform. If Facebook skews too heavily, and Google is on last click, then sometimes it looks like things are never working. To help companies make informed business decisions, we are building statistical models that show information at higher-than-the-platform level.
We are also building better segments of customer profiles that help the clients understand who their core audience is, but also helps us build predictive audiences for finding new people.
Another big thing we’re trying to solve is incrementality. We work with large brands that have a strong organic following on social media; and their question is: “Hey, Greg, why should I spend more money if I would have acquired those users anyway?” So we’ve done incrementality testing with brands that spend a lot in other channels than Facebook and Google. We helped them build out different ways to look at the data so that we continue to spend in those channels and they actually know the incremental lift that they’re getting.
There’s one other piece that I think is super important and usually overlooked: first-party data. We work with brands to try and acquire as much of that first-party data as possible, segment it and use it, because that’s what they’d be left with if Facebook shut off tomorrow.
How do you prepare and adapt for changes in the marketing ecosystem?
Because we work with so many brands, we have a lot of senior leadership on each channel level. We routinely meet across departments and share insights. The data science team also builds pretty robust reporting. We try to stay ahead of our brands and to be forward-thinking about anything that is ultimately going to impact the agency. We’re constantly trying to hack our way through things like the types of content that work and things that we know will help us scale.
That’s how we have always approached it. Every major shift in our business was done to answer the needs of the brands that we were working with. For instance, there’s a data side to our business because it’s more important than ever to use that. Facebook used to be a platform where you could throw anything at the wall, and you would get a 4x or 5x return. No one’s asking about data when you’re literally printing money out of Facebook, right? It only happens when the margins get tight. But then Facebook became a more crowded platform, and the same happened with Google: more advertisers, higher CPM and a more competitive environment. We needed to be smarter about what we were doing, so we built out our data team.
Now there’s two levers that we can pull: the data side and the creative side of the business. Again, we are a performance marketing agency, focusing on all the levers. Because platforms like Facebook are only going to be more competitive, they’re only going to get more expensive, and we are only going to lose more traffic. So the more agile agencies have to think much farther outside of what we are doing on these platforms; because we’re going to make up the incremental revenue on things like SMS, influencer marketing and organic content, to continue to drive money into the top of the funnel.
Why is your content arm so important as a lever?
We have an integrated solution where our media buyers are paired directly with our video editors and producers to allow us to be agile and quick; because as everyone knows, content is king. What we try to do is optimize around things like what we call the thumbs-up rate on Facebook — three-second video views. If I held someone for that long in their newsfeed, I can potentially get them into our flow. We do the same on YouTube, and we do things like this on programmatic, because the name of the game is to get people into the funnel and work them through it. And we’re using both our data science team and our creative team to build out and optimize on the front end around these quick metrics to get things moving.
In my opinion, there’s no close second to an SMB agency that has a content arm like we do. Leveraging our content team to build performance content is one of the biggest levers that we have. Three and a half years ago, Facebook was telling us: “If you don’t build video content, and if you don’t prioritize video in the newsfeed, it’s not going to work.” At the time, we leaned in very hard — and the pain of growing a creative team of 70 people is real, especially in LA. But it’s allowed us to scale our agency.
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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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