Facebook’s VP of Growth Gives You Tips on Growing Your Product. Schultz paid for college by doing online marketing. Schultz got more serious into online marketing when AdWords launched. Back then, Schultz would buy clicks from Google and resell them to eBay (through the affiliate program) for a small 20% margin.
What does VP of growth do?
What Is a VP of Growth? A VP of Growth could specialize in optimizing your sales process, your products, your referral programs or your content. Basically, they’re using whatever tools and tactics they can to figure out how to grow a company faster.
Who is Alex Schultz?
Alex Schultz is Chief Marketing Officer and VP of Analytics for Facebook, leading consumer marketing and product analytics globally. Alex brings nearly two decades of direct response marketing experience to his CMO role including his early work at eBay before joining Facebook in 2007.
What is Facebooks North Star?
The North Star Metric (NSM) is a metric that a company uses as a focus for their growth. This number best reflects the amount of value that your company brings to your customers. Airbnb = ‘Number of nights booked’ Facebook = ‘Monthly active users’ And below I’ve listed many more examples of North Star Metrics.
Who does VP of Growth report to?
It is the VP of Growth’s job to be 100% focused on customers; including acquisition, conversion/activation, retention, and upsell/x-sell. Your VP of Growth should also report directly to the CEO in a small to mid-size organization or a CPO in larger organizations.
How do you become a VP growth?
Key Requirements You have strong experience in Growth Hacking, Social Media/ Viral Marketing, managing demand generation & the customer acquisition funnel and performance marketing. You have good knowledge of Campaign Management Tools (eg. Active Campaign), and Web Analytics Tools (eg.
Who is head of marketing at Facebook?
Paid Search Marketing Specialist focused on driving increased efficiency in eBay spend across Google, Yahoo, MSN and other paid search platforms.
Who is Amazon CMO?
Executive Bio Jennie Perry serves as the Chief Marketing Officer, Prime and Amazon North America of Amazon. She joined Amazon in 2011. Prior to that, Perry was CMO at Stride Rite, where she led end-to-end marketing for wholesale and all vertical retail including owned, franchised and outlet stores.
Who is the head of advertising at Facebook?
Nicola Mendelsohn has been named Facebook’s new ad chief, a role previously held by Carolyn Everson.
What is Countermetric?
A counter metric is something that you measure to ensure that you haven’t over- optimized your north star metric to the detriment of your customers and your business.
What is North Star strategy?
The North Star strategy is an aspect of strategic planning that business owners and entrepreneurs use to optimize their company’s success. It’s a product-based strategy that equips businesses to manage and maximize their product delivery by determining an overall purpose or goal.
What are Northstar metrics?
A North Star metric is the one measurement that’s most predictive of a company’s long-term success. To qualify as a “North Star,” a metric must do three things: lead to revenue, reflect customer value, and measure progress.
8 Growth Secrets Learned from Reading Every Interview
Customer expectations are higher than ever before, and word of mouth spreads quickly. Moreover, as the customer’s power grows, the necessity of providing a positive customer experience grows as well. Customer experience is an area that requires continual nurturing and care, and organizations who place a stronger emphasis on customer experience strategy will have a beneficial influence on customer loyalty, improved retention, and enhanced revenue growth. To understand more about how CRM plays a crucial part in every customer experience strategy, download our freeCRM Buyer’s guide today.
A Growth Mindset Starts at the Top
As soon as you’ve demonstrated retention, you can move into what Schultz refers to as “operating for growth.” It is his contention that buy-in from the entire team is required for effective, sustained growth. Anyone involved in the company’s development, from founders and engineers to marketers and sales representatives, must take growth seriously and analyze how their actions will impact the company’s ability to scale. Schultz goes so far as to declare that “growth teams should not be formed for startups.” “The growth team should be comprised of the entire organization.” In order to encourage the adoption of this attitude, corporate leadership must support growth and instill the belief that growth is everyone’s duty throughout the organization.
Identify the Magic Moment
When a new user or client recognizes the value of your product, service, or business, this is referred to as the “magic moment.” It’s the point at which someone realizes what your product is all about for the first time. Experiencing the magic moment is a significant aspect in boosting retention since it provides consumers with a compelling incentive to return. For Facebook, that moment is the first time a new user comes across a photo of one of their friends on the social networking site. That is why Facebook attempts to encourage individuals to add at least 10 friends within the first 14 days of their account being created.
Retention (and the possibility for growth!) will surge if you’re successful in guiding them towards the moment that makes them feel connected to your product or platform.
Stop Thinking About Yourself
Because you are intimately familiar with your product, your perspective will always differ from that of your consumers (even if they are your colleagues). As a result, in order to increase the number of users who have the magical moment, you must stop worrying about how you use the product. It’s also essential that you quit focusing about your power users and the folks who are already enthusiastic about your product. Instead, you must design your product to be as appealing to the marginal user as possible.
- Finding out what they’re lacking from the user experience that keeps them from returning and figuring out how to maximize the likelihood that they’ll encounter the enchantment is the key to success.
- They’re most likely adults who are capable of using filters.” The marginal user is someone who doesn’t receive alerts very often, or at all.
- Ignoring the marginal users leads to increased customer churn, which has a negative impact on both growth and retention rates.
Once again, this is effective because the magic moment is what convinces someone why they should keep returning to your product in order to experience that value again and again.
Define Your North Star Metric
Because the success of a social product such as Facebook or Whatsapp is totally dependent on the number of people who use the platform, engagement (such as monthly actives or the number of messages exchanged) must be the north star for measuring success. Alternatively, businesses that provide experiences may use a north star measure depending on how frequently their services are used (like how many nights are booked on Airbnb; how many movies are watched on Netflix; or how many rides are completed with Uber).
- “If everyone in your organization is thinking about it and pushing their product toward that measure and their behaviors toward bringing that meter up, you can be certain that your firm will be successful in the long term,” Schultz says.
- This is especially true because there isn’t a single statistic that should serve as your compass.
- The most important thing is to choose one and mobilize your entire team around it.
- The most important indicator for Facebook is the number of monthly active users.
- His explanation: “It’s likely that they’re all linked together.” “Consequently, it’s usually appropriate to use practically any measure, whatever one you feel most strongly about and which is consistent with your goal and beliefs.”
Minimize Friction in the Conversion Process
It is critical that you make it as simple as possible for customers to convert at every stage of the sales process in order to keep your sales funnel flowing (and full of potential customers). Increase the likelihood of potential consumers taking action by requiring less work from them – whether it’s to learn more, join a trial, sign up for a service, or install your product. To determine how viral your product is, you must first grasp three criteria that are connected to virality: Payload: This refers to the number of persons who can be reached through a certain channel.
Increase the virality of your content by rewarding users to share and invite additional people to join – and by making it exceedingly simple for them to do so on a large scale.
In the case of an app, a simple click on the ‘Share’ button should allow your users to share the app to everyone in their contact list if they so want.
Use SEO to Help Customers Find You
Users must be able to locate your product or service when they are looking for a solution similar to yours in order for your business to grow. It makes no difference how fantastic your product is if no one is aware of its existence. Moreover, where do modern customers go in pursuit of innovative products and services? Their search will be conducted online, most likely through the use of Google or a voice search on their phone. If you want to get found on the internet, you must optimize your website for search engine results.
- Having said that, many entrepreneurs fail to recognize the importance of properly optimizing their websites for search engines.
- He advises start-ups to select keywords with care and consideration.
- The other important SEO component Schultz emphasizes in his interviews is the importance of link development.
- The fact that your site can be trusted and delivers relevant information to visitors demonstrates to Google that your site is worthy of being displayed in search results for the key phrases you’ve targeted.
Don’t Let Growth Be Optional for Your Startup
Finding a path to long-term success for businesses of all shapes and sizes is a requirement to achieving success. In other words, even if growth is technically optional, you may increase the likelihood of it occurring by following Alex Schultz’s recommendations. Before you go, here’s a short review of what happened:
- Prior to “operating for growth,” it is important to determine product-market fit. Particularly in the case of small enterprises and start-ups, growth should be an enterprise-wide endeavor. Identify the “magic moment” that draws clients in – and then guide them toward it. Instead of optimizing experiences for power users (or yourself), optimize them for marginal users. At every stage of the funnel, make it as simple as possible for customers to convert their purchases. Ensure that it is straightforward for individuals to learn about, share, and invite other people to use your product.
Hopefully, these suggestions will assist you in developing innovative approaches to increasing retention, increasing virality, and driving long-term growth. a little about the author: Currently, Emily works as a researcher and writer at Propeller CRM, a simple Gmail CRM that focuses on developing pipelines for sales, closing deals, and expanding businesses. She enjoys jogging and traveling, and she has a strong desire to write about everything and everything. She is fueled by Earl Grey, yoga, and tofu.
Alex Schultz, VP Growth, Facebook, on “Growth” in How to Start a Startup
This guide is intended to assist you in developing innovative strategies to promote retention, increase virality and generate long-term growth. The author’s biographical information is as follows: Emily works as a researcher and writer at Propeller CRM, a straightforward Gmail CRM that focuses on developing pipelines, completing sales, and expanding businesses. A runner and travel fanatic with a passion for all things literary, she is fueled by Earl Grey, yoga, and tofu. She lives in the San Francisco Bay Area.
- What’s App: number of messages sent
- Facebook: number of monthly active users
- Sleeping Rooms Booked on AirBnB
- Gross Merchandise Volume on eBay as a percentage of eCommerce
- And more.
How many messages are sent on What’s App; how many people use Facebook on a monthly basis In the case of Airbnb, it is the number of nights booked; in the case of eBay, it is the gross merchandise volume as a percentage of eCommerce;
- Whatsapp: number of messages sent
- Facebook: number of monthly active users Nights booked on AirBnB
- Gross Merchandise Volume on eBay as a percentage of total eCommerce
Some excellent materials are Ogilvy on Advertising, written by David Ogilvy, and Viral Loop, written by Adam Penenberg. “A decent plan that is forcefully implemented now is preferable to a flawless plan that is violently executed next week.” George S. Patton (source: wikipedia)
How to Start a Startup: Lesson’s from Facebook’s VP of Growth
Alex Schultz was one of the few persons in the world who was able to make the transition from a job in physics to a career in marketing before becoming the Vice President of Growth at Facebook. His interest in marketing was sparked by a lack of financial resources, as is common in many genesis myths. More specifically, Schultz got into web marketing to help him pay for his college education costs. With the 1990s, he had been captivated by the realm of search engine optimization (SEO), which he recalls as “a very, really easy skill to master.” It was because he was weary of being the nerdiest person in physics class that he began learning how to program, and he taught himself the ability by creating a cocktail website.
After that, he became involved in growth hacking before it had a formal name.
marketing for good).
(For further information on starting a business, see How to Start a Startup: The Book.
Pay Attention to Your Retention Curve
He was one of the few persons in the world to have made the shift from a profession in physics to one in marketing prior to becoming the VP of Growth at Facebook, Alex Schultz. His interest in marketing was sparked by a lack of financial resources, which is common in many origin myths. More specifically, Schultz got into web marketing to help him pay for his undergraduate education expenses. The field of search engine optimization (SEO) had captured his imagination by the 1990s, when “it was a very, really easy skill to master,” he says.
Through his efforts, his project became the largest cocktail establishment in the United Kingdom.
“Using every channel you can to obtain whatever result you want,” he thought, was all it was to online marketing.
marketing for good).
Check out the book How to Start a Startup: The Book for much more startup guidance. It is the definitive reference book on launching a successful technology firm.)
What Does Good Retention Look Like?
Schultz claims that when people ask him the above question, he becomes enraged since the answer is so simple to figure out through the application of dimensional thinking. He told the story of Geoffrey Taylor, a British physicist who was awarded the Nobel Prize for his achievements. He was able to figure out the potency of the U.S. bomb simply by looking at photographs of the atomic bomb. (Read this post if you want to know precisely how Taylor accomplished this feat). Dimensional reasoning is the process of considering all of the dimensions that are involved in a situation in order to find an appropriate answer.
The result was that he was able to divulge one of the most important secrets that existed at the time in the globe.
Calculating Facebook’s retention rate isn’t that difficult to do.
The retention rate on Facebook may be calculated by dividing the second number by the first.
Your Retention Rate Depends on Your Vertical
According to Schultz, various sectors require varying terminal retention rates in order to be successful in their respective enterprises. The following is true: “If you’re in ecommerce and your monthly active basis retention is close to 20% to 30% of your users, you’re doing extremely well.” According to Schultz, “If you’re on social media and the initial batch of individuals that sign up for your product is not at least 80% retained, you’re not going to have a large social media site.” Consider the question: Is there anyone else who is comparable?
And, more importantly, am I even close to understanding what true success looks like in this industry?
Operating for Growth
Schultz believes that companies shouldn’t have growth teams since the entire firm should be focused on growth, rather than a few individuals. The CEO should be the company’s chief growth officer, serving as the company’s north star in terms of where it wants to go. For example, Mark Zuckerberg is the north star of Facebook since he has always been focused on the company’s growth. Many firms concentrated their efforts on their registered users during the early years of Facebook. Zuckerberg, on the other hand, was more concerned about monthly active users.
“It was the number he used to hold the entire world accountable for Facebook, as if it were a number we should care about.” When it came to monitoring growth, Airbnb employed an approach that was similar to that of Google.
The key conclusion is that the metric for measuring growth differs from firm to organization.
In the event that your product and market fit are excellent, consider this: You’ve created an ecommerce website, and you have 60 percent of your visitors returning to it every single month, with 60 percent of them completing a purchase from you, which is really amazing.
After that, how do you take it and say, “Now it’s time to scale back?” “It is at this point that growth teams come in,” Schultz says.
Importance of the Magic Moment
When you hear the phrase “magic moment,” you could think of a tender moment shared between a couple or this song in particular. However, there is another magical moment: the first time people recognize the value of your product or service. Is this the defining moment for Facebook? According to Schultz, this is the time of year when individuals can see their friends. That is all there is to it. When you first view the first image of one of your friends on Facebook and realize, “Oh my God, this is what this site is all about!” you have reached the pinnacle of Facebook experience.
- The most significant feature of a social networking website is the ability to interact with your friends.
- Facebook, Twitter, Whatsapp, and LinkedIn are all focused on showing you the people you want to follow, connect with, and send messages to as rapidly as possible, since that’s what really counts in the digital world.
- You must consider what the “magic moment” is for your product and ensure that people are linked to it as quickly as possible during this period.
- People may easily jump from 60 percent retention to 70 percent retention if you can establish a connection between them and the attraction that brought them to your site, according to Schultz.
- ” It is all about the power user when it comes to creating an outstanding product.
Tactics for Virality
Sean Parker considers virality in terms of three factors: payload (the number of people who may be reached by a single viral blast), conversion rate, and frequency of occurrence. These three characteristics provide you with a fundamental understanding of how viral a product or service is. According to Schultz, Hotmail (formerly known as Outlook) is “the definitive example of clever viral marketing at its finest.” Because consumers had to be tethered to their Internet service provider (ISP) when Hotmail first joined the email market, people couldn’t acquire free email clients at the time.
The majority of these email firms attempted to get customers by spending large sums of money on television, billboard, and newspaper advertisements, but Hotmail was unable to do so due to a lack of available financing.
However, the frequency was high due to the fact that consumers were contacting the same persons again.
Furthermore, the conversion rate was quite high due to the fact that consumers did not want to be linked to their ISP email. As a result of its high frequency of usage and great conversion rates, Hotmail eventually became highly popular.
The booksViral Loopby Adam Penenberg andOgilvy on Advertising by David Ogilvy are recommended by Schultz if you are interested in viral marketing and advertising. Also available is the complete transcript of Schultz’s talk, which may be found here. As an added bonus, if you enjoyed this piece, you might check out How to Start a Startup: The Book. It is the definitive reference book on launching and growing a successful technology firm. The photograph of Alex Schultz used on this page was taken from a video of his talk at Stanford University.
How do you find insights like Facebook’s “7 friends in 10 days” to grow your product faster? at andrewchen
I recently responded to a question on Quora, and I’m posting my response on my blog: How do you uncover insights such as Facebook’s “7 friends in 10 days” to help your product develop more quickly? Here are my opinions on the subject: What is the point of enacting such a rule? It’s vital to remember that the purpose of setting a short-term goal like “make 7 friends in 10 days” is to motivate your team to work toward a specific goal in a focused manner. I’m sure “10 friends in 12 days” or “5 friends in 1 day” would work as well, but the important thing is to choose something that makes logic and is easily remembered.
You may use the following as a basis for your definition:
- It may be the number of days they were active in the previous 28 days, income from sales in the last 28 days, material posted in the last 28 days, or whatever else you wish to describe.
What is the best method for determining the appropriate evaluation function? All you have to do now is choose one based on what makes the most sense for your company. There is no one-size-fits-all solution here; you must customize your solution depending on what makes your product successful. Because Facebook and Twitter are ad-based businesses, they are very concerned about the frequency and engagement of their advertisements. Investigating the information Once you’ve determined how to measure a user’s progress, you’ll want to choose a cohort of users (for example, everyone who has joined in the previous X days) and begin producing rows of data for that user.
- Eventually, you’ll have a row that looks something like this: success metric, business metric 1, business metric 2, business metric 3, etc.
- And, of course, the entire objective of this exercise is to generate a hypothesis in your mind about what is driving the success indicator in question.
- Performing the regression analysis Occasionally, it may be evident that a single statistic correlates more strongly with your success metric than any other metric in your analysis.
- Alternatively, if you wish to go down a more formal path, you can use the type of regression described by David Cook.
- In addition, you can’t really tell your development team, “Hey guys, active days are determined by a variety of metrics including friends, posts, likes, and 20 other things.” “Let’s make them bigger.” It’s not really motivating.
- Verifying the accuracy of your model After you’ve identified the model that best suits your needs, the next step is to experiment with it and A/B test it.
- Check to see if those users are more successful as a consequence of your intervention.
If this is the case, then it is possible that the model is not very good.
Finally, once you’ve gone over the data, run some regressions, and validated that your model is correct, you’ll need to be able to convey it to other individuals who aren’t familiar with your work.
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How to Fit a Growth Team into the Organization (Practical Examples)
Growth and the structuring of your growth team do not have to be difficult endeavors. Surely you’ve heard the stories: a startup failed to hire a growth team, or they failed to get the outcomes they desired. The VP of Growth did not perform admirably in that position, and so forth. But here’s the thing: if you want to accelerate your growth, you’ll need to assemble a team of growth specialists. Furthermore, there are demonstrated examples of how to integrate a growth team into your firm. The purpose of this article is to demonstrate exactly what your Head of Growth should be doing, how major companies such as Airbnb and Facebook integrate their growth teams into their organizations, and how you can ensure that your growth team is working in sync with the rest of your organization, all in one place.
Let’s have a look at this!
This is without a doubt one of the most significant and crucial positions not just in your growth team, but also in your organization as a whole.
What Does a Head of Growth Do?
It is not need to be difficult to create and structure your growth team. Surely you’ve heard the stories: a startup failed to employ a growth team, or they failed to achieve the desired outcomes. It was the same story with the VP of Growth, and so on. Yet the fact remains that if you want to speed your growth, you will require a growth team. A growth team may be integrated into your business using tried-and-tested methods. The purpose of this post is to demonstrate exactly what your Head of Growth should be doing, how significant firms like as Airbnb and Facebook integrate their growth teams into their organizations, and how you can ensure that your growth team is working in sync with the rest of your company.
Look at what we’ve got here.
This is without a doubt one of the most significant and accountable positions not just in your growth team, but also in your organization as a whole.
- Marketing, product creation, user acquisition, user activation, and user retention are all important aspects of business.
Marketing, product development, user acquisition, user activation, and user retention are all important aspects of any business.
Key Responsibilities for Heads of Growth
Once your firm has structured and hired a Head of Growth, what will the process look like in your organization? What does a typical day in the life of a Head of Growth look like, taking all of the duties into consideration? First and foremost, your Vice President of Growth will assist your organization in defining its growth target. This is critical to the success of the remainder of your activities. Most of the time, it’s preferable for the growth team to concentrate on a single funnel stage at a time.
If you’re just getting started, the majority of your growth team’s efforts will be directed on user acquisition.
This is a very hands-on position.
Although many people believe it is vague, it must be supported by actual facts and analytics that show you what you are doing well and how you can improve your growth even more. A Head of Growth is also responsible for regularly evaluating and prioritizing initiatives, such as:
- If the effort is (un)successful, what influence will it have on growth? What level of confidence does the team have that the effort will result in growth? How much resources will the team require in order to put the initiative into action
It is the VP of Growth’s responsibility to remain cool when faced with a slew of excellent ideas and determine whether or not a particular effort or change will truly match with the goals and contribute to growth. The most critical role of your Head of Growth, on the other hand, is to have all of the answers.
- Users are abandoning their subscriptions for a variety of reasons. Why do consumers choose this over the other option
- We need to know what we can do to increase growth and why it will be effective.
When they’re the only person in an organization who doesn’t have the option of shrugging and saying, “That’s just the way things are,” they’re in a tough spot. Instead, businesses must support their claims and goals with facts and customer intelligence gleaned from market research. If the Head of Growth has access to the appropriate data, he or she can make sound judgments. As a result, a truly excellent Head of Growth will never rely on educated guesses. Instead, they’ll sift through data to make the finest selections possible for the advancement of your company.
- That is the person who reports to the Head of Growth?
- This frees them up to concentrate exclusively on growth rather than traversing the corporate ladder and continually reporting to different individuals.
- Keep in mind that your Head of Growth will be in charge of recruiting the complete growth team for your organization.
- So that’s one duty off your list, but it just serves to emphasize the importance of hiring the best individual for the job.
- Many of the household names we know and love today began out as modest businesses that needed to expand their reach.
- They just knew that they had issues to deal with.
- Take a look at how they accomplished their goal without further ado:
2.1. AirBnB’s Growth Team
Source:Adioma It all started with two founders and a very tiny budget in 2008, when AirBnB first opened its doors. Their stock now has a market capitalization of $35 billion. You’ve definitely heard about their path, which included using other people’s networks (they re-posted advertisements on Craigslist to reach a larger audience) and even selling cereal boxes to raise funds to continue their growth. The founders unquestionably done everything they could. However, it was the staff at AirBnB that was responsible for the company’s meteoric rise.
What is her philosophy?
“Can you tell me how you plan to bring more people to yourself and your product?” According to Gandhi’s growth team, they have a considerable amount of autonomy inside the AirBnB corporate structure.
In order to achieve their primary objective of customer acquisition, the growth team developed a referral scheme that enabled them to contact even more potential clients. AirBnB has grown from 20,000 users to 500 million users as a result of Gandhi’s autonomous growth team.
2.2. Uber’s Growth Team
Source:Adioma Starting with two founders and a very minimal budget, AirBnB embarked on its entrepreneurial adventure in 2008. Their stock now has a market capitalization of $34 billion dollars. Using other people’s networks (they re-posted advertisements on Craigslist to reach a larger audience), and even selling cereal boxes to raise funds to grow, you’ve definitely heard about their experiences. Without a doubt, the founders did all within their power. However, it was the staff at AirBnB that was responsible for the company’s rapid expansion.
So, what’s her point of view on everything?
” In what ways can you get more people interested in you and your product?
In order to achieve their primary objective of customer acquisition, the growth team developed a referral scheme that allowed them to contact even more potential clients.
2.3. HubSpot’s Growth Team
The growth team at HubSpot is firmly ingrained in the company’s operations. Despite the fact that they are somewhat independent, they make certain that they support product-led growth. In 2015, HubSpot began experimenting with an autonomous growth team for the first time. When they reached the year 2017, they had a fully established growth team that was in charge of the following:
- Throughout HubSpot’s company, its growth team is well-established. In spite of the fact that their businesses are largely autonomous, they make certain that they support product-led growth. 2015 marked the beginning of HubSpot’s trial with an autonomous growth team. After a year, they had a fully constituted growth team that was in charge of the following tasks:
They also collect an incredible quantity of data, which would be unthinkable if HubSpot didn’t have such a growth-driven culture in place to begin with. Otherwise, they would be hampered by data silos, which is one of the most significant drawbacks of the autonomous development team organizational structure. As a result, they “democratized” growth throughout the whole product development team. Because of this, in addition to having a specially created growth team, HubSpot also shared the results of its growth team with other divisions inside the organization.
In the case of many businesses and startups, this is an expected course of events.
However, according to Kieran Flanagan, VP of Marketing and Development at HubSpot, it is vital to have the correct tools and procedures in place in order to encourage growth throughout the business.
Marketers provided insight into what customers wanted, while engineers provided their thoughts on how the product might best achieve that goal. In the end, HubSpot promoted synergy, which resulted in the development of products that were designed with growth in mind.
2.4. Pinterest’s Growth Team
When it came to organizing their growth team and integrating them into their business, Pinterest chose a hybrid approach. According to Jeff Chang and John Egan, Growth Engineers at Pinterest, the company decided to use a bottoms-up approach that would scale effectively over the long term. Pinterest Engineering Blog is the source of this information. In fact, this means that everyone who works at Pinterest is a member of the growth team, with a small group of engineers and marketers who are in charge of putting the projects others have presented into action on a daily basis.
- This ensures that Pinterest will never run out of ideas, while simultaneously ensuring that no members of the growth team are sitting around doing nothing while waiting for the next great thing.
- A section of their departments has also been separated into growth teams, each of which is responsible for a certain component of the user journey.
- Pinterest, on the other hand, is the type of firm that prioritizes ideation first and has a strong, idea-driven culture that allows everyone to have a sense of ownership over the product, which makes this structure particularly effective.
- A growth head’s role at Pinterest is merely to ensure that the ideas are genuine and to double-check before getting carried away by their enthusiasm and embarking on an activity that is not possible.
- Facebook’s Business Development Team And last but not least, Facebook, the social network that rules them all, has a growth team that is responsible for the success of its user acquisition efforts.
- However, how do they fit into the larger structure and hierarchy of the organization?
- Facebook, like Uber, has an autonomous growth team comprising of engineers and marketers to drive the company’s development.
- Chamath Palihapitiya, the Head of Growth, brought together data engineers, product engineers, marketers, and other members of the growth team, and divided them internally into distinct funnel phases:
- (Resurrection for users who have abandoned their accounts)
Users’ acquisition, activation, and retention are all important (with the exception of users who have abandoned their accounts).
Step 1. Create a Growth Team as soon as Possible
There is no replacement for outlining the standards and expectations from the beginning of the process. Employing a growth team while your company grows, when you still have a small number of people, makes having a growth team on board much easier to manage for the rest of your organization in the long run. It becomes a typical part of the procedure after a while. This is particularly crucial for the autonomous growth team structures that are in place. But even if you have a functional growth team, identifying duties and responsibilities at the outset will assist you in the long run.
Consequently, if John from Product Design is required to manage a considerable amount of Growth Team responsibilities in addition to his usual workload, his first superior should have no objections to his participation in the Growth Team.
The same could be said about Pinterest, which utilized decentralized structures to make everyone feel like they were a part of the company’s growth team.
Step 2. Make Expectations Clear
Setting norms and expectations from the beginning is essential to a successful project and organization. If you recruit a growth team when you’re growing your business, while you still have a small number of people, then having a growth team on board becomes much easier to manage for the rest of your firm in the long run. It becomes an accepted component of the procedure. Particularly crucial in the case of autonomous growth team arrangements. But even if you have a functional growth team, setting roles and responsibilities at the outset will help you avoid confusion later on.
Consequently, if John from Product Design is required to manage a considerable share of Growth Team responsibilities in addition to his usual workload, his first supervisor should have no objections to his participation in this situation.
Step 3. Avoid Confusion and Reinforce Goal Alignment
A large number of cooks ruins the soup. Exactly the same thing happens when you’re building your business and you’re juggling a slew of KPIs and objectives to meet. It’s a shambles, and nothing gets completed in its entirety. It is necessary for the entire business to be aligned around one objective and one true-north metric in order to successfully integrate your growth team. For Facebook, this was referred to as user acquisition, and the statistic used to measure it was the number of new users.
The firm had an autonomous growth team, but everyone in the company supported their efforts because their job was growth as well, albeit in a less intensive manner than the growth team’s.
Step 4. Cross-Departmental Collaboration
There are two advantages to having a growth team that is made up of people from a variety of various backgrounds. The first advantage is self-evident: they have the ability to perceive the big picture that you require in order to progress. Second, they serve as advocates for growth within your firm, which is a valuable asset to have. They can persuade their native team that your objectives are valuable and urge them to accomplish everything they can to assist you. Data silos may be broken down through cross-departmental collaboration and objective alignment, among other things.
Step 5. Customize and Fit Your Growth Team
While all of the examples above follow some form of established development pattern, they have all made several adjustments to make them more relevant to their own situations. There are no two startups that are alike. They each have their own set of objectives and respective teams. If you’re putting together your own growth team, be sure to take into account your own personal talents and shortcomings. Perhaps you’ll discover that your team has no trouble juggling normal work with growth team responsibilities.
However, whichever model you adopt, make sure that everyone in your organization understands how critical it is to continue to expand. Only then will you be able to understand what it is like when every employee of a firm gets up in the morning with a determination to assist you in your endeavors.