This is the post five of a five part series detailing the principles that I've implemented in high performance growth teams.
At any given time our growth team is focused in on the highest impact area we can work on given limited resources. We determine that by going through our growth process using growth models to guide us. That means we might focus on virality for a period, then first seven day retention, then activation rate. At some point our team will be big enough to have full time people on each one of those areas. But even at that point there is one thing we always keep in mind... Growth Is Never Done.
There are always more experiments to run, learnings to be gained, and optimization improvements. Just because we might have focused on virality for three months, doesn't mean we are done with it.
There are two core reasons why growth is never done.
Over time, things are always moving. As things move, you need to adapt. Specifically there are three areas that are always changing.
1. Your Product Changes
Over time the core of your product will evolve (hopefully a lot).
Just consider how much Facebook's product has changed since it's
inception. As your product changes, what works for growth will
change as well. You'll need new on boarding flows, new email
nurturing, new push notifications, etc. What worked before, will
become obsolete as your product moves forward.
2. Your Audience Changes
Every huge product typically goes through the innovation adoption
lifecycle. Your audience will start with the innovators, then move
to early adopters, then early majority, etc, etc. Lets use Facebook
as an example again. They started with a few core progressive
colleges. Expanded to all colleges. Then high school students. Then
everyone. Now even my 70 year old Dad uses Facebook and gets more
comments/like than I do.
As you move through these stages, different audiences behave and
respond to very different things. That means you need to evolve
your messaging, on boarding, channels, almost everything as you
grow.
3. Your Channels Change
User acquisition channels (especially online) is an adapt
or die environment . This happens on both a macro and micro
level. At the macro level the number of new channels is increasing,
and their cycles of effectiveness are accelerating. This is best
captured by an incredible chart put together by James Currier of
NFX and updated by Peter van Sabben.
On a micro level, each major channel is going through an incredible amount of changes. What worked on Facebook Ads 90 days ago doesn't work today. I highly doubt what works today, will work in 90 days. This is true for every major channel. I put this graphic together 7 months ago and it is already out of date:
Every growth tactic has a lifecycle of peak effectiveness to tactic fatigue. This was described well by Andrew Chen in his post The Law Of Shitty Clickthroughs .
Every tactic goes through the above curve in 4 steps:
1. Someone discovers a new tactic that works really well mainly
because it is novel.
2. The tactic is optimize it to its peak effectiveness.
3. Other companies copy the tactic so it becomes more widespread
which causes it to lose its novelty.
4. After a while users start to block the tactic out which causes
effectiveness to decrease.
A great recent example of this is the proliferation of website light boxes such as mine:
I implemented this tactic long time ago when few people were doing it and I was getting email conversion rates above 10%. But these days you would be hard pressed to find a site that doesn't use these light boxes in some way shape or form. An incredible amount of tools such as LeadIn, SumoMe, Hellobar, and more have made it super easy for anyone to implement. As a result, the effectiveness of light boxes has decreased and is now in a steady state between 5% - 6%. To combat this you could be testing new tactics such as SumoMe's Welcome Mat .
Once you understand this cycle then you should draw two really important conclusions:
1. It Is Important To Be Early
The earlier you are to new tactics and channels, the more you can
take advantage of that tactic's peak effectiveness. If you hit it
super early, you can reap results that heavily heavily outweigh if
you were to hit the tactic later in the cycle.
2. You Have To Keep Working Just To
Maintain
It takes constant work, just to maintain the effectiveness of your
channels and tactics. This becomes harder and harder as you grow in
size. You have to keep investing more if you want to keep
accelerating your growth rate.
So how do we apply this principle on our team? It comes down to two things.
1. Culture Of Constant Experimentation
We institute a culture of constant experimentation on our team
through our growth process. Even if we only have the capacity to do
things that we know have been successful I try to make sure the
team is spending at least 30% of their time on experimenting with
new things. It is the only way to stay ahead of the curve.
2. We Aren't Afraid To Throw Out Playbooks
As we find things that work, we systemize them in the product or by
building playbooks. It is easy to get into a rhythm of just running
the same playbook because "thats whats worked." A lot of teams can
fall into the trap of "we do that because we've always done it that
way." As a result, we constantly try to be brutally honest with
ourselves. If something doesn't seem to be working any more, we
shouldn't be afraid to throw out that playbook and replace it with
something new.
3. Hire For Grit
"Growth" is a sexy job title to have right now. With anything that
is new and sexy you get the imposters that follow. We try to be
very careful of who we hire and make sure one of their personality
traits is grit. Knowing that what you are working on will never be
fully optimized, that you may have to re-do it all in the near
future, and that your job will never be done can be tough for some
to handle. We often go through times of constant failure. The only
way to get out of that is having the grit to stay focused, stay
true to the process, and focus on quality experiments.
At the end of the day, Growth is a long term game so take a long term view. At times it will feel like you are running on a hamster wheel. Just keep moving and never stand still.
source: http://www.coelevate.com/essays/growth-is-never-do...