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In essence Muhammad thinks the “growth hacking” is a charlatan term for online marketing that consists of a bunch of everyday tasks that all online businesses should be doing: SEO, SEM, Content Marketing, Social Media, Referral Marketing, etc. “How many legs does a dog have if you call the tail a leg? Doesn’t.
How many through SEM? Measuring viral adoption is obviously important. per click on an SEM basis this is NOT your cost to acquire a customer – you need to add conversion rate. Retention / Churn. If you can break this down by channel that you’ve acquired them from this is obviously better. How many through affiliate deals?
SEM is great because you can capture people as they’re searching for a solution, which is often some of the highest intent traffic you can find. Virality and Referral. Virality is the key lever of many of the most famous growth examples: Dropbox, Uber, Facebook, Hotmail. If you sell shoes, would virality work for you?
Revenue is always my preferred measure, but you can use anything that is important to your business: retention, activation, viral invites, or even customer satisfaction in the form of something like net promoter score. If an optimization has an effect at the micro level that doesnt translate into the macro level - who cares?
I think its helpful to think about two kinds of competition for distribution: acquisition competition and retention competition. On the web, we have many of these channels: SEM, SEO, world of mouth, PR and viral. Retention competition is how you get people to come back to your app. My advice: dont launch big.
is an elegant way to model any service-oriented business: Acquisition Activation Retention Referral Revenue We used a very similar scheme at IMVU, although we werent lucky enough to have started with this framework, and so had to derive a lot of it ourselves via trial and error. But its not really viral growth, even when its exponential.
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