12 Mar Day 24 – Do you know how to acquire users??
“A startup is a company designed to grow fast…the only essential thing is growth. Everything else we associate with startups follows from growth” – Paul Graham
This week we had Ian Jeffrey, VP Product Marketing at PasswordBox come in to talk to the teams about User Acquisition. The talk started off with a big laugh as Ian asked, “how does one acquire users? I honestly have no idea…”. He then clarified by saying that it’s different for every business out there, there’s no set formula. It’s all about A/B testing to find out what works for you.
However, there are 6 KPIs that you can measure to see if the techniques you are using are working.
1- Retention: How long does the user tay?
2- Engagement: How active is the user?
3- Activation: This is different for every business, you need to find which metric is yours. What is it that a user needs to do to be considered an active user?
4- Acquisition: How many users can you get?
5- Revenues: How many users are paying?
6- Referrals: How many of my users are bringing in new users?
One key lesson that Ian shared was not to pay for advertising until you’ve figured out your KPIs, otherwise it’s just money down the drain. Once you know how to keep your users, then you can start buying ads. However, just because you don’t have the money to spend or you aren’t ready to buy ads, there are still PLENTY of ways to scale. You just need to find some kind of trick or exploit that is free. Look at some of these, now famous, examples.
But before we go any further, let’s get back to the basics. What exactly is product marketing? According to Ian, it means “getting the largest amount of people to experience the core value of your product as quickly as possible”. And this doesn’t mean saying that you’re going “to go viral”. Viral marketing is not a strategy, it’s a result of doing a great job.
At the end of the day, the best way to market your product is to have an amazing product. If you solve a real need, and do it well, then you’ll drive value and users will flock to you. Take Dropbox as an example. It adds storage space to your computer, by doing so it solves a real need and drives value to the user. They have a clear USP (Unique Selling Proposition), if you have that, then you have everything you need to grow. Great marketing should be indistinguishable from magic.
Check-out some of the articles Ian suggested be read as a follow-up to his talk.