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STARTUP
SCHOOL
2018
Growth - Startup School 2018
Gustaf Alstromer
Partner Y Combinator
Product Lead,
Growth
Partner
Airbnb Growth team 2015
Why is growth important?
Startups = Growth
Who is this talk really for?
Disclaimer: This advice doesn’t
apply to everyone yet
Don’t have a growth team if you
haven’t found product-market-fit
1.5B
1.25B
1.0B
750M
500M
250M
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Translations
Mobile
Internet.org
Facebook’s growth story
Natural adoption will always
slow down over time but...
You can impact your
growth rate.
1. Identify the metrics that represent the value my
users get from my product
2. Measure the repeat usage of that metrics
Product Market Fit
Measuring product market fit
Company Metric that represent value Ideal frequency
Airbnb
Facebook
Gusto
Lyft
Checkr
Stripe
Bookings / Stays Annual
Active users Daily/Monthly
Running employee payroll By-weekly/Monthly
Rides Weekly/Monhtly
Background checks Daily/Houly
Transactions Daily/Hourly
Now, measure your retention
Metric
(in %)
Time
Measuring retention. This is a bad product
0%
25%
50%
75%
100%
This is a great product with product market fit.
0%
25%
50%
75%
100%
10% after 1 month. 12% after 12 months.
Shopify
50% after 1 month. 10% after 24 months
Blue Apron
70% after 12 months. 30% after 7 years!
Netflix
Raise your hand if you are
measuring your retention rate
There are also other ways to
measure product market fit
Growth channels & tactics
Three ways to grow at scale
1. Product Growth / Growth Engineering
2. Performance Marketing
3. Brand Marketing
Growth or Marketing?
Product Growth:
Conversion rate optimization
• You product is a funnel
• Every step in the funnel have drop-off
Conversion rate optimization
• Internationalization
• Authentication
• Onboarding
• Purchase conversion
Behaviour
Is this a rare behaviour that people use Google
to find a solution?
Do existing users already share your product via
word-of-mouth?
Does having more users improve the
experience?
Do I already know who each of my future users
are?
Do my users have high LTV?
Ideal frequency
Google SEO & SEM
Virality & Referrals
Virality
Sales
Paid Acquisition (Facebook, Google etc)
Growth channels to explore
Referrals & Virality
Referrals Word-of-mouth is Airbnb’s largest growth driver
Referrals is engineered word-of-mouth
Referrals Product
Referrals Funnel
Entry Point Take Rate
Users sending invites
Reach (Invitees Per Inviter) / Sharing
Conversion Rate to New User
Weekly active users who saw entry point
Conversion Rate to New Guest
Conversion Rate to New Host
First time nights
Referrals Funnel
Viewreferrals page
Users sending invites + Sharing
Reach (Invitees Per Inviter) + Sharing
Conversion Rate to New User
Weekly active users who sawentrypoint
Conversion Rate to New Guest / Host
First time nights
Email Direct Direct Email Import
Referral “Hooks”
Invitations
Sign Up
Bookings
Referrals Invite
email
Referrals Invite email
Social proof
Social proof
Exclusivity
Urgency
Clear value
Paid Growth
Paid Growth
• Don’t do paid growth if you don’t have revenue
• CAC: Customer Acquisition Cost
• LTV & Payback time
• Attribution
• Channels: Facebook, Instagram, Google, Youtube
Search Engine Optimization
What you see
What Google see
SEO - Two main levers
On-page optimization
• Every optimization starts with keyword research.
• Which page am I trying to rank for what keyword?
• SEO Experimentation
Off-page optimization
• Who is linking to you?
Growth Teams
Who works on a growth team?
How do you organize yourself?
How do you decide to work on?
Making Decisions
Most of the world will make
decisions by either guessing or
using their gut. They will either be
lucky or wrong.
- Mixpanel
Decisions have consequences
Use experimentation to
validate your decisions
Experiment Review
Control Experiment
iOS Sharing Sheet
Metric: Shares
Place your bets
Control Experiment
iOS Sharing Sheet
Metric: Shares
+ 40%
Airbnb Trip Invitation Email
Metric: Signups
Experiment:
“Accept Joe’s Trip Invitation”
Control:
“Join Joe’s Trip”
Airbnb Trip Invitation Email
Metric: Signups
Experiment:
“Accept Joe’s Trip Invitation”
Control:
“Join Joe’s Trip”
+ 14%
Sharing Icons
Metric: Shares
Control Round Buttons Square buttons w.
Labels
Sharing Icons
Metric: Shares
Control Round Buttons Square buttons w.
Labels
+ 18% + 52%
Product decisions are hard
1. Startup = Growth
2. Measure your retention
3. Choose a north star metric and set a goal
4. Build a culture of experimentation
Summary
gustaf@ycombinator.com
Thank you &
Questions

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Gustaf alstromer how to get users and grow