Why startups need to fail-fast & experiment more
Framework for Faster Experimentation
Prioritizing right and focussed experiments
Setting up team, process, culture & KPIs
Tools, Holistic Architecture enabling quick implementations of teams with lean team of Fronend & Backend developers
2. My Introduction
A seasoned business-oriented product technology leader having 12+ years of experience
Growth Hacker & avid believer of fail-fast approach with frugal development cost.
Co-builtTravelTriangle from scratch, making it category leader in online holiday industry
with 8M+ monthly traffic (60+ NPS),
1000+ converting agents network,
900+ team members,
1000+ Cr annualized GMV with +ve contribution margin and
having raised ~270 Cr in venture capital over span of 8 years.
Built experimentation culture & eco-system enabling running high # of concurrent without much tech bandwidth
Built high performing team from scratch to 90+ team size with right org structure/OKRs, project portfolio
management system & standard agile practices
3. Why Startups need to HDD
■ Finding PMF, validating the problem
before solving it
■ Hypothesis-Driven
Development(HDD)
Yelp Reviews - friends asking friends to reviews
Instagram (Burbn) - too many features but only
photo sharing was most used
Groupon - fundraising site for causes and groups.
Youtube – started from video dating site
■ Hack Growth around Acquisition,
Activation, Retention, Revenue &
Referrals
■ Finding AHA moment (What is working
the most for what kind of users)
Facebook - 10 friends
Twitter - 30 users to follow
Slack - 2000 messages to one another
HotSpot – Default plan with assisted training
Airbnb – Craiglist
Dropbox – get free space on referring
Amazon – Amazon Prime
4. Initial Hypothesis needs Work
Based on Data
[ Past Learnings | User Behavior
Global Standards ]
Based on Intuition
[ Personal Learnings | User
Understanding ]
5. HDD- Experiment Lifecycle!
VALIDATION OF WEAK/
MEDIUM HYPOTHESIS
(GENERATING ADDITIONAL
DATA POINTS)
ITERATE & OPTIMIZE FOR
BEST CONFIGURATION
VALIDATION OF SUCCESS
METRICS BEFORE TAKING
UP AS A PROJECT
1
2
3
8. Few Impact of Growth POD (Fail-Fast)
• Jump in visitor to lead (V2L) by 100% through a combination of progressive forms, chatbot and
exit intent
• Jump inV2L by 50% through optimizing marketing landing pages.
• Growing Lead to conversion (L2C) by 60% through tweaking funnel management workflow.
• Growing revenue by 30% by experimenting with our revenue instruments.
• and many more...
All done with minimal tech members & arriving at 100% confidence in numbers within less than 1-month post picking up
the problem/idea.
9. Growth POD Culture, KPI & Execution
■ Right POD members / Mindset / Culture
– right mix of tech, product, marketing & business expertise to thrash quicly.
– working with fewer details, deploying quick & smart solutions iterating quickly
■ KPI of the POD
– % delta in respective metric found, # of experiments closed (should be higher), and closure SLA (should
be on the lower side).
– # of impactful ideas on the board pending to be executed, implementationSLA, and closure SLA once
the experiment is live.
■ KANBAN execution:
– Ideas segregated as "to be picked", ”WIP", "live & running" & lastly "closed".
– Control # of ideas in each bucket as well as SLAs of movement of the idea(s) from one bucket to another
– Weekly/Bi-WeeklySync ups to see –ves and +ves
11. Pre-requisite
■ One great generalist leader to be accountable for this POD
– There’s going to be lot of friction/conflicts with others stakeholders
– Person able to take calls through mixing data with intuition / signals.
– Person should be jack of all trades. Recommend product/tech co-founder leading this up in start
■ Real-time tracker to review experiment results & cross-impact
– Setup dashboard upfront so that data collection doesn’t need bandwidth from day 0 of experimentation
– Lot of time, during and after experiments, gets wasted in collecting data
– Due to high effort in collecting data, team tends to miss lead metrics as well cross impact of the
variation on other metrics.
– Due to absence of real-time data, quick improvisation in variation doesn’t happen
12.
13. How to Prioritize
■ Separate out product/ideas (AARRR Funnel)
– Acquisition (Customer acquisition channels).
Team to be expert in the marketing & product domain.
– Activation (Engaging users leading him/her to
lead/conversion)
– Retention (Getting users back again and again)
– Referral (Making people tell about you).
These funnels need product experts to hack growth.
– Revenue (Revenue stream from new or returning
users)
Team to be expert in business and product domain
14. How to Prioritize
■ Prioritize ideas using ICE (Impact, Confidence,
Effort) framework
– It's not about throwing ideas at the wall as fast as
you can and see what sticks.
– The more focussed approach at the start, the
more intentional your experiment and hence
more the impact
– don't be afraid ofWhat-ifs like flipping whole
funnels / change variables of the game
– Don’t get busy cracking local maxima but few
radical outcomes too
15. BLOCKERS TO FAIL-FAST
■ Idea scarcity and/or lot of just small incremental impact experiments
– Go Back to whiteboard, analyze data deeply or do more customer surveys. Listen to your customer support
calls
■ Slow implementation / launch
– MVP version is not actually MVP and team unable to cut scope to launch faster
– Backend (BE) & frontend (FE) changes taking too much time to implement
– Missing data at time of analyzing leading to starting experiment again
– Data collection taking time and/or is not reliable
■ Slow Discard
– P-value not getting reached in time. Plan for it before
– Magic of sample size - higher impact will produce definitive impact faster
– Improvisation not happening on time and/or new variation not going back in time
– Team too attached with the exp and trying to make it work instead validating/invalidating the same
16. Quick Implementation on BE/FE
CASE I: Simple UI changes. Eg-
o Text and color changes
o CTA button text and/or placement changes
o Different Placement of UI component already existing on same page
Tool:VWO, Optimizely
CASE 2: Integrating 3rd party plugins JS - GetSiteControl, inspectlet, hotjar etc.
Tool: GoogleTag Manager
CASE 3: Static/Landing page(s) for Marketing
Tool:WVAws S3 or GCP cloud storage or public folder of hosted application integrated with existing
Backend API
17. Experiment 5: Testing variations for form color & CTA color on form [Kerala]
ORIGINAL
18. Experiment 5: Testing variations for form color & CTA color on form [Kerala]
VARIATION 2
19. Experiment 5: Testing variations for form color & CTA color on form [Kerala]
VARIATION 4
20. Experiment 5: Testing variations for form color & CTA color on form [Kerala]
VARIATION 3
21.
22.
23. Quick Implementation on BE/FE
CASE 4: More complex UI changes on existing product pages (tweaks needed post React)
○ New inline UI component with existing BE API
○ New overlay components like Popup, Banner to be added
○ Surveys, exit data etc.
Tools: VWO, GetSiteControl,Webengage
CASE 5: New UI component with API /data not present on Backend
o Static / Slightly dynamic content - FAQs, trust section
o Contextual content - Blogs, agent rich testimonials
Tools: Mock.io/Mockable.io,Zoho/Airtable,GSheets+Gscript, Retool, AWS Lamda/GoogleCloud function
CASE 6: Heavy UI changes like dynamic list order / dynamic inline section / dynamic search results
Tools: DynamicComponent Rule Engine (built in-house),AWS Lamda / GoogleCloud function
24. o Slider form with diff
departure date
o Sticky sort by and filters
o Variation between +
and chat icon (direct
action)
25.
26.
27. Quick Implementation on BE/FE
Case 9: Email, SMS, IVR A/B test on messages
Tools: DynamicTemplate Engine (in-house)
Case 10:Changes in existing functionality / workflow on BE side + A/B test Data Science models
o Our own CERE – Configurable event-driven rule-based engine
28.
29. Tools to collect variety of data
Tools available for data stream / attributions:
❏ Segment
❏ Branch
❏ Appsalar
Tools available for reports / funnel:
❏ Google Analytics
❏ MixPanel
❏ CleverTap
❏ Omniture
Tools available for metrics tracking:
❏ Click / Form analytics – Inspectlet,CrazyEgg
❏ Mouse hover – HeatMap,Crazyegg
❏ User Engagement – Google analytics
WebEngage
Kissmetrics
❏ Amplitude
30. Launch Fast’er’: Be your own QA:
Limit scope like browser/platform to test direct preview over prod by yourself in least effort/time
Set it up @ lower traffic like 10% and ensure that all data / event are getting tracked everywhere
correctly within first 2 days.
Also can fix up any bugs, if found
Pre-Define sample size: take calculated risk to reach to that size as quickly as possible.
Evolve with constraints: Develop analytical skills to extrapolate data (if missing) and deciding on risk to
increase traffic incrementally - Slow failing is also a cost to company and missed opportunities.
Adapt different execution style: High % ofWeaker hypothesis needed very high velocity experiment churn
vs high % of strong/medium hypothesis
Learnings & Pitfalls
31. Learnings & Pitfalls
Data will tell “what” but not “why”, so include customer surveys and subjective inputs to connect things
from the first principle
You need to close the lead metrics along with lag, to understand that impact is coming because of the
solution and not because of some other variable.
User segment (Channels, platform, devices, intent etc.) could change analysis/insight drastically.
If tests are neither positive nor negative, control always wins
Don't associate personal attachment or bias to the experiment as then instead of validating hypothesis, you
start trying to make it work at all cost.
Experiments never fail, hypothesis are proven wrong. Actual Failure would be if we have not been able to
understand user base better and/or not able to see next set of initiatives to try.
Do not get tempted to scale the experiment to 100% as is, in lieu of immediate gain. Experiment's solutions
are often done for idea validation and not for scale.
You can view the experiment variants here -
http://traveltriangle.com/mkt/Kerala-tour-Packages?optimizely_x7706492615=4
http://traveltriangle.com/mkt/Kerala-tour-Packages?optimizely_x7706492615=3
http://traveltriangle.com/mkt/Kerala-tour-Packages?optimizely_x7706492615=5
http://traveltriangle.com/mkt/Kerala-tour-Packages?optimizely_x7706492615=2
http://traveltriangle.com/mkt/Kerala-tour-Packages?optimizely_x7706492615=0 [Original]
What do you think when we say we’d need to have a product for this in the company?