The MicroConf Europe 2016 Talk Recaps can be found on the central hub page.
Website: NerdMarketing.com
Twitter: @DrewSanocki
Slides: http://Nerdmarketing.com/microconf
- When I came on board KL, they had tried a number of ways to grow
- Adwords
- Social
- Blog outreach
- traditional PR
- affiliate programs
- Nothing worked, until we changed one thing:
- Going from acquisition to retention focus
- Key insights
- Most businesses eek by when they could be growing lots faster
- possible to 2x without 2x the work
- Bootstrapped, grew, and sold DesignPublic.com in 2003
- Since then:
- Fanprint
- Karmaloop
- Old time pottery
- Discountmugs
- Fab
- Teamwork.com
- and others…
- Strategic perspective
- Michael Porter’s “Five Forces”
- Jim Collins’ “Good to Great”
- not relevant enough to bootstrapped startups
- Tactical perspective
- “846 conversion rate optimization tips”
- ended up overwhelmed and not doing anything
- Multiplier perspective
- only three ways to grow revenue:
- increase AOV / ARPU
- increase frequency of purchase / churn
- increase number of customers
- Improving one is great, but they are multiplicative, so growing all three is killer
- Teamwork.com
- ARPU $53
- Frequency: 40 months
- Customers: 13,700
- Total LTV: $29.6M
- How to grow
- Bucket all ideas by Multiplier
- Within Multiplier prioritize by speed and impact
- Work back to front Churn > ARPU > # Customers
- Focus on Multipliers 1 and 2 first (maximize THEN multiply)
- Do you need more traffic? Or revenue?
- More info: http://nerdmarketing.com/20
- Customer churn is expensive and time-consuming
- Reactivation / win-back campaigns
- Reactivate lapsed customers
- X months after defection, win-’em back
- Teamwork: Sent 50k, re-engaged 300
- Anti-defection campaigns
- Predict churn before it happens
- develop signals: start with Recency
- last-login time
- last purchase
- More: nerdmarketing.com/19
- Highest ROI campaigns you will run:
- DesignPublic: $250K in a day
- KarmaLoop: 500% ROMI on anti-defection offers
- MOre pro-tips:
- Ladder your promos give away the farm gradually
- 10 days w/o login, Offer 1
- 20 days w/o login, Offer 2
- 30 days w/o login, Offer 3
- Sync with FB custom audiences
- Ladder your promos give away the farm gradually
- #3 Improve the product
- Better product, lower churn
- Delighted app, Qualaroo, Hotjar
- Gotta communicate it (e.g. weekly feature newsletter)
- only three ways to grow revenue:
- Increasing ARPU
- #1 increase prices
- most companies underestimate inelasticity of demand
- introduce annual pre-pay
- reduce choices (if more than 3 tiers)
- reverse order (highest first)
- #2 Cross-sell & upsell
- Amazon reported 35% of revenue from cross-sell
- Boosts ARPU
- Enhances experience (think: email + landing pages)
- Differentiates offering
- Expands margin, efficiencies
- Bounce-back campaign
- Affiliate marketing?
- #3 Bundling
- Think Microsoft Office
- #1 increase prices
- #1 CRO
- Might not have traffic problem, might have conversion rate problem
- Run a pop-up with opt-in offer
- Add content upgrades to your top blog posts
- #2 Content Marketing
- Honeypot strategy (Buffer, KISSmetrics)
- Who are your best customers?
- Target a community and where it hangs out
- E-Z content marketing
- Record a video
- Transcribe (Rev.com)
- Create article or — better — upgrade
- Pivot to Slideshare
- Assemble into eBook
- Total cost: $20 + 30 min
- #3 Paid acquisition
- FB Live to landing pages
- Webinar-like effect
- Flip to a FB ad
- Retarget based on engagement
- Alerts via Pushcrew on site
- Arb new channel – low CAC
- #4 Acquire the right customers
- there are good customers and there are shit customers
[…] Drew Sanocki: Double Your Business – The Approach I Used to Create $10M in Value in 10 Months at Karmaloop […]