How to Start a Startup – Ready to Grow Breakout Session

Alex Schultz & Naomi Gleit

  • You need to grow fast. Moving fast is the core to what has worked for Facebook and many other companies
  • Growth Funnel
    • Acquisition- important to get this, but worthless without the other three
    • Activation- how many people have used the site in the last 30 days?
    • Engagement
      • Engaged users are what drives your virality
    • Virality
  • 1,2,3 approach
    • Understand
      • you need to understand your product and issues that confront your users
        • Hive (analytics site)
        • Facebook analytics
    • Identify
      • A good understanding of your product is nothing if you cannot derive actionable insights.
      • Identify the opportunities in the data
    • Execute quickly
      • Based on what you identify, you should be using rapid prototyping based on your hypothesis
  • Acquisition, Activation, Engagement, Virality
    • Acquisition- Registration
      • Facebook spent an entire month on growth analysis. Did a registration waterfall analysis: how many people came in, how many people went out, how many did we lose along the way. How many registrations
      • Realized they needed to simplify the conversion rate to make it simpler and less intimidating (removed all fields that weren’t completely critical
        • Put items into the ‘next page’
      • Facebook Connect can be used to optimize this as a company
      • They are able to support 80 languages since Facebook users were the ones that translated the site. Example- French was translated in 24 hours. They had to invest in the infrastructure to allow users to do the translating.
    • Activation – Facebook had 3 steps
      • Find friends
        • This is critical to the functionality of Facebook. FB needs to find friends for the user immediately or else the user will not see the value in it.
      • Fill out info
      • Add a picture
    • Engagement-Getting users to come back to engage and produce content
      • Send to mail transfer agent ->open, click, conversion
      • Optimize your emails – FB was able to improve click through rate by switching from text to HTML with a picture of your friend that requested you
      • Go beyond the letter of the law for spam laws
    • Virality – Invites
      • Focus on retention
        • The exponential growth curves are all about retained users, the ‘new users’ are a very small portion of that growth curve
          • ‘Don’t pour water into a leaky bucket’
  • You need to figure out what matters…

RG

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