HOMEWORK (SUMMARY)
HELCARE
COURSE DETAILS
Course: Experiential Entrepreneurship 2 (EXE201)
Lecturer: Tran
Thi Mai Sau
Class: HM17A02
HELCARE MEMBERS
Ngô Văn Hiển – DS160316
Nguyễn Hữu Huy Hoàng – DE160582
Nguyễn Thị Thanh Hiền – DS160475
Hồ Văn Nam – DE160460
Phạm Thế Vinh – DE160443
Lê Kim Thị Như Ý – DS160462
TOPIC:
How to Get Users and Grow - Gustaf Alstromer.
Startup = Growth:
Find product-market fit. Product-market fit is the most essential part of continued growth.
And without the right product, the startup team will burn through a lot of cycles on things
that do not matter.
Facebook has an excellent data science team, they predicted how big FB would be. They
predicted there would be 400 million users by 2015. But this number grew very quickly
and surpassed 500 million in 2009. The biggest reason is translation (you
want to offer
your product to as many people in the world as possible). FB started to reach its limit of
English speakers and it had to translate into multiple languages to scale. In 2010, another
huge thing happened: mobile. Then, in 2013–2014, they started to hit their Internet limits
and started partnering with vendors and service providers to get more people online and
thus grow more. By 2015 they had 1.5 billion people. The forecast is not wrong per se, but
it does not take into account everything the company will do.
From Facebook, startups can learn:
Natural growth will always slow down over time, but you can influence your growth rate.
Growth teams today are typically engineers, data scientists, designers, product managers,
and user researchers. The ‘Everyone is responsible for growth’ approach does not work.
Having a small team responsible for all development also does not work. You must find a
balance. The right way to find that balance is to set clear goals and make a clear division
between product and growth.
Measuring product-market fit:
Identify a metric that represents the value users receive from your product (North Star
Metric).
Measure repeats usage of that metric:
For AirBnb, the metric is number of bookings and
frequency is annual, for FB it is
number
of daily active users, for Lyft it is number of weekly/monthly transactions, for
Stripe it is number daily/hourly trading etc.
If a startup's retention rate stays the same, meaning it does not continue
to lose users over
time, then it has product-market fit. For example, retention charts from Shopify and
Netflix (70% retention after 1 year and 30% retention after 7 years!).
If the startup is too small to effectively measure retention that way (e.g., you have 10
users, not 1000), go out and talk to users.
CHOOSE A NORTH STAR METRIC AND SET A GOAL:
Product growth is a multifaceted process that includes applying techniques and technology
to improve products, optimize conversions, and promote through performance marketing
and branding. To optimize conversions, we need to simplify
the registration process,
improve the onboarding experience, and increase purchase conversions.
The growth
channel relies heavily on customer discovery of products,
with SEO and SEM being
important tools for improving Google placement. On-page and off-page optimization are
essential, from keyword research to securing links from reputable sites. Each step in this
process is important and needs to be done carefully to achieve sustainable growth.
Organic search (SEO): Optimize your website and content for search engines to drive
organic traffic.
Paid advertising: Use paid channels like Google Ads, Facebook Ads, and other platforms
to attract users.
Virality: Design your product in a way that encourages users to share it with others.
Partnerships and integrations: Collaborate with other companies
to reach a broader
audience.
Track key growth metrics like user acquisition cost (CAC), lifetime value (LTV).
BUILD A CULTURE OF EXPERIMENTATION:
Start using A/B testing when making decisions becomes difficult without data and testing.
Start implementing when the audience is large enough to see a significant change in
metrics. Search for “ab testing calculator” on Google and you
will find many quick online
tools to calculate if your test results are significant.