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Growth PM > Growth and Acquisition Strategy > Flashcards

Growth and Acquisition Strategy Flashcards

1
Q

What are the stages of the Growth Loop?

A
  • create: analyze, creation of the growth loop, feature definition, hypothesis highlighting
  • validate: choosing tests and metrics, creating tests and audience, analyzing risks, planning next steps
  • expand: analyzing growth risks, analyzing expansion opportunities, extending the growth loop, business alignment
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2
Q

What is the difference between PM and Growth PM? What does a Growth PM do?

A

Growth PM is a specialization of PM.

PMs do:

  • bring focus
  • support cross-functional teams alignment
  • deliver features

Growth PMs do:

  • help users see the value
  • grow user base
  • bring profitability (sustained growth)

Especially, Growth PMs do:

  • analyze growth funnels
  • segment customers
  • strategize a growth plan
  • run growth experiments
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3
Q

What kind of companies need a Growth PM?

A

Those that have already established the market fit - profitable startups and medium-sized companies.

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4
Q

What is The Big Picture of User Acquisition and Growth?

A

As-Is (Growth Landscape) and the To-Be (Growth Loop)

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5
Q

What are the components of the As-Is (Landscape) stage?

A
  • Business goals and product objectives
  • AARRR Framework
  • Key growth metrics
  • Key target persona traits
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6
Q

What is a Business Goal?

A

What the company tries to accomplish in a timeframe. It has a goal (direction) and an objective (a specific, measurable target, timeframe). It’s high-level.

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7
Q

What is a Product Strategy?

A

Clarifies how the Business Goal will be achieved. It’s high-level.

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8
Q

What is AARRR?

A

A growth framework that helps us understand the As-Is and is mapped to the components of the user journey.

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9
Q

What does AARRR stand for and what each means?

A
  • Acquisition - how the product gets to be known by potential users (i.e. SEO)
  • Activation - how users find value in the product (i.e. testimonials)
  • Retention - how you get users to stay on the product (i.e. a good search tool)
  • Referral - how you get users to tell others about the product (i.e. generate a referral link)
  • Revenue - how you monetize (i.e. ask subscription for some features)
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10
Q

What are Growth Metrics?

A

They are values used to quantify the current state, so that it’s easier to track how the Growth process is working.

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11
Q

What are the types of Growth Metrics?

A
  • Primary = directly influences the Business Goal
  • Secondary = influences the Primary metric

Secondary metrics can be:

  • Upstream = impacts the primary metric
  • Downstream = is impacted by the primary metric
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12
Q

Name a common Acquision metric?

A
  • Generation Rate = measures the effectiveness of a channel in driving awareness
  • Monthly visitors = no. of visitors (not converted) in a month
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13
Q

Name a common Activation metric?

A
  • Customer Acquision Cost = how much does it cost to activate a customer
  • Conversion rate = what % of visitors are activated
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14
Q

Name a common Retention metric?

A
  • Monthly Active Users

- Churn rate

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15
Q

What is a target persona?

A

A target persona is a decription of key characteristics, needs, motivations of a user segment.

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16
Q

What are the steps of determining the target persona?

A
  • segmenting

- key traits synthetization

17
Q

Give examples of how target persona segmentation can be made.

A
  • user journey (i.e. visitors, users)

- motivation (i.e. socialisers, enthusiasts)

18
Q

How is the synthetization of key traits made?

A
  • analytics, research
  • noticing common themes (repetitive information)
  • group thems on sentiments - “need or fear” vs. “motivation or purpose”
19
Q

What are Growth Loops?

A

They are means of optaining a business goal

  • actions that sustain each other
  • their output can be reinvested as input
  • can address a broad spectrum or just a small aspect

e.g. live healthy: think positive -> feel good -> workout -> eat healthy -> think positive

20
Q

What are the stages of the “creating” phase of a Growth Loop?

A
  • growth opportunity analysis
  • building the growth loop
  • product features tht enable the loop
  • hypothesis behind the loop
21
Q

What are the components of Growth Oportunity Analysis?

A

Leverage existing [Resources] and the [Value] it unlocks to overcome [Hurdles] and achieve [Goal]

  • Resources - what advantages we have
  • Value - what value (from a growth point of view, as a growth mechanism rather than user value) we can unlock
  • Hurdles - what’s blocking us
  • Goal - we know it from the Business Goal in he Growth Landscape phase
22
Q

What are the traits of Growth Loops?

A
  • Holistic - addresses problems non-linear - i.e. increasing the number of new users can have many solutions
  • Sustainable - utilizes existing resources
  • Defensible - consolidates
23
Q

What are the steps of actually designing a Growth Loop?

A
  1. Perform the Growth Opportunity Analysis (understand the goals, hurdles, resources, values)
  2. Start with the goal
  3. Select one of the more impactful hurdles
  4. Utilize an existing resource or value to overcome the hurdle
  5. Link the removal of the hurdle to their original goal (output is reinvested as input: resource -> hurdle -> goal)
  6. Connect the actions (3-5 steps)
24
Q

How you enable the growth loop?

A

It’s abbout identifying the product feauture(s) that will sustain the loop:

  1. Analyze the growth loop and write a list (3-5) of features that would support it
  2. Select a single feature taking into consideration its impact and effort
  3. Connect the feature to the right step of the loop
25
Q

What are the types of Hypothesis and their structure?

A

This [Action] leads to the [Result], which contributes to the [Goal]

  • Primary (the hypothesis behind the whole Growth Loop), split into Action (the product enhancement - not actual functionality - supporting the loop), Result (what effect we expect the Action to have), Goal (what is the objective we predict the Result to contribute to)
  • Secondary, the assumptions that connect each step of the loop
26
Q

What are the steps for validating the Growth Loop?

A
  • Test goals and metrics - this validates the principal and secondary hypothesis through metrics
  • Audience and test setup - selecting the type of test (e.g. A/B Testing) and the right audience (user type, audience size etc.)
  • Risk and mitigation - how to fix the loop if the hypothesis proves to be wrong
  • Results and analysis - implement the findings by comparing them with my pre-test data (new tests, other metrics to follow, product features)
27
Q

How do you define the test goals and metrics?

A
  • Primary test goal has to validate the Principal Hypothesis and be aligned to the business goal: Does the [Action] lead to this [Result] which contributes to the [Goal]? - where “Result” is associated with specific metrics
  • Secondary test goal has to validate the Secondary Hypothesis - Does this [Action] lead to the [Result]? - where “Result” is associated with specific metrics
28
Q

How do you plan for the test type and the audience?

A

Clarify which are the traits of the audience and the size of it. Choose a test, e.g. A/B testing with a control and a variant version, survey, usability testing etc.

29
Q

What are the most common validation risks in the Validation stage and how they can be mitigated?

A

The most common risks with validating are:

  1. The hypothesis doesn’t stand (is not validated)
  2. There are adverse side effects (e.g. too many negative ratings)
  3. Audience has been chosen wrong

Mitigation can be addressed in different ways:

  1. Adapt the product so it addresses the problem
  2. Collect feedback before implementation (i.e. research)
  3. Collect other metrics for clarity (e.g. survey)
  4. Follow-up (fix and repeat)
30
Q

How do you perform test results analysis?

A
  1. Compare the results with the pre-test data (compare the metrics with the expectations)
  2. Update the Risk and Mitigation details with new pain-points
  3. Repeat tests if necessary
31
Q

What are the common Growth Risks?

A
  • Customer Retention - you can’t have acquisition without retention (“leaky pipe”)
  • Market Saturation - the maximum number of users has been reached in the market(s) you’re addressing
  • Single Product/Market - when you only address a single market and/or have a single product
32
Q

What framework can be used to decide how to expand the Growth Loop?

A

Product / Market Expansion Grid (Ansoff Matrix) - Harvard Business Review, 1957

  • Market Penetration - existing market - existing product - low risk
  • Product Development - existing market - new product - high risk
  • Market Expansion - new market - existing product - high risk
  • Diversification - new market - new product - highest risk
33
Q

What are steps for expanding a Growth Loop?

A
  1. Start with the original Growth Loop
  2. Growth risk - identify potential medium and long term risks - select the most likely Growth Risk (e.g. retention - leaky pipe) that continues to be aligned with the goal
  3. Product and Marketing expansion opportunities - clarifies how risks can be overcome through product/marketing expansion - select a Growth Opportunity from the Ansoff Matrix that addresses the selected Growth Risk from (2)
  4. Growth loop expansion - draw a new flow in the Loop, connected to 2 of the original Loop’s steps
  5. Business goal re-alignment - analyze the Business Goal, the selected Ansoff quadrant, and the rationale for this configuration

Growth PM (3 decks)

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