To start growing you must first establish traction. There is also a big misconception about traction.
If you have a functioning business but you get zero leads from online channels, then you must establish traction in the online world. On the other hand, if you are starting a new business and launching a new product, then you must also achieve Product Market Fit. Start by getting the interest of early adopters and have them start using your product. Out of all consumer groups, they are most likely to find you even before you start promoting yourself.
Ask for their feedback, see what works, what doesn’t work, what suggestions may they have. Listen not only to the ones that scream at you with their opinions. Try to get the insights from everyone. You don’t know where may the biggest idea come from.
Keep on testing the product as well as traction channels. In terms of channels, I suggest using the Bullseye Framework. It will help you generate ideas and test out different channels in order to find out which one is the most attractive for your business.
Remember, there are no bad ideas until you test them.
Some may bring a bigger opportunity for success than others but until you have the data you still have a chance of being proven wrong. This is why you should brainstorm with your entire team about what to test and how to test.
Be as lean as possible about it. This means doing this very fast and as cheap as possible, so use small advertising budgets, do this in-house and try to automate as much as possible. I always promise to bring results after 90 days and I also suggest you test out the 2-3 channels you pick for 90 days also.
Once you find the channels that work, scale up.
Invest more time and resources into them. Test different ideas for these channels. See what RoI will it bring. That way you will be able to build a growth formula and start quantifying your activities to check the weights of all your activities.
Andy Johns, who is now the VP of Growth at Wealthfront came up with the equation for Amazon’s Growth:
Number of Verticals x Product Inventory per Vertical x Traffic per Product Page x Conversion to Purchase x Average Purchase Value x Repeat Purchase Value = Amazon Growth
Following this example, Amazon can create teams that each focus on one of the metrics pictured above. This way they will all be contributing to the OMTM.
Starting to work on growth at a company that already has traction is a different story. Here you have a lot of data to look at and see what has been done in the past.
Find three channels:
- Highest converting,
- Bringing the most traffic
- Cheapest conversions
You either already have the data that will help you find them or you have to use the Bullseye Framework.
Why these channels? Because they will enable you to know exactly what to do when for example you want to squeeze in a couple more leads with little cash or want to set up a campaign that will bring traffic to your site in order to share your newest content.