Flashcards
Flexibility & Growth Engines
Cards in this deck (27)
- 1Why do organisations need to be able to learn as quickly as possible what the marketplace values?So that they can adapt their business and grow it into a sustainable enterprise
- 2What is the first things startups need to doUnderstand the customer
build a customer archetype/person
this humanises the target market - 3Why do startups need to humanise the target market?It makes it easier to make decisions about product development
- 4Following understanding the customer what should startups do?Take a Leap of Faith
trust that your research (with the archetype) will pay off
Analogue/Antilog approach? - 5What's an MVPthe smallest most basic product/service you can build and start learning from
Starts ups should ALWAYS build one - 6What should they use the MVP to do (other than learn from them)attempt to attract early adopters
they expect bugs & glitches so don't have to worry about having the best possible product - 7What is any effort beyond what you need for an MVP considered to be?Waste
It wasnt driven in response to the market place - 8what is the startups job?to figure out where they are RIGHT NOW, confront cold hard facts and design experiments to bring them closer to where they're laid out to be in the business plan
- 9what are the 3 learning milestonesEstablish a Baseline
Tuning the Engine
Pivot (or Persevere) - 10What do the metrics that you use need to be?3A Test
Actionable
Accessible
Auditable - 11What does Actionable mean?Demonstrates a clear cause & effect relationship so that you can take definitive action
- 12Accessible?Easily understood and widely available to everyone in the company
- 13Auditable?Able to go back to the source of the data and prove that the metrics were telling the true/entire story
- 14Give an example to metrics that passed the 3A testIMVU
considered each day's visitors to be one cohort
for each cohort they tested:
Registration - how many signed up
Activation - how many went on to login
Retention - how many have 1-5 chats? how many became paying users? - 15What buckets should the metrics that you use fit in to?Registration
Activation
Retention
Referral - 16What fine tuning aspects do you look at?innovation accounting
Retention Rate
Conversion Rate
Value for Customers - 17What is the Pivot or Persevere decision?When you have to make the decision about whether or not you business strategy has a reasonable chance for success
Base decision on cold hard facts - 18What is a PivotA fundamental change to the business strategy
- 19Why is the ability to pivot so important?Its when the mindset of an entrepreneur comes in
True entrepreneurs are learning how to build a sustainable enterprise, not make a single product idea a success - 20What pivot types are thereZoom In
Zoom Out
Customer Segment
Customer Need
Business Architecture
Technology - 21what should any type of pivot be?Rigorously tested like everything else
- 22What do you have to achieve once you've found a product that'll help create a sustainable businesssustainable growth
- 23How can you achieve sustainable growth?3 ways
Sticky Growth
Viral Growth
Paid Growth - 24What's sticky growth?It depends on having a product/service that customers will continue to pay for over time
If you can bring in new customers faster than old customers leave, your business will grow
Retention Rate - 25What's viral growth?depends on your existing customers bringing in new customers
WOM, Invites, Referrals
Most famous e.g. is Hotmail, struggled to get traction until they added an invite to sign up to the service at the end of every message that was sent
VIRAL LOOP - 26What's paid growth?You take the profit from existing customers and invest it in advertising/development tools to attract new customers
LCV - Lifetime Customer Value
total profits you make from each customer over lifetime of doing business
CAC - Customer Acquisition Cost
Want LCV > CAC - 27What does Ries emphasise about growth engines?Startups should focus on a single type of growth engine
But it depends on type of startup
many companies use a combination
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- Second Year Entrepreneurship Flashcards on Flexibility & Growth Engines , created by Alex Millar on 21/05/2016.
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