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How Retention Drives Growth

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Dan Olsen
Product Management Consultant and Trainer at Olsen Solutions
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Global Growth Marketing Conference 2019
December 10, 2019, San Francisco, USA
Global Growth Marketing Conference 2019
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How Retention Drives Growth
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About speaker

Dan Olsen
Product Management Consultant and Trainer at Olsen Solutions

Dan Olsen is a product management consultant, trainer, and author based in Silicon Valley. At Olsen Solutions, he works with CEOs and product leaders to build great products and strong product teams, often as interim VP of Product. His clients include Facebook, Box, PayPal, and One Medical Group. Dan is the author of the bestseller The Lean Product Playbook. Prior to consulting, Dan was a product management leader at Intuit. Dan is the founder of Lean Product, a monthly speaker series in Silicon Valley with over 8,000 members.

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About the talk

Track: Product Track

Many companies focused on growth spend a lot of time and money trying to optimize their acquisition or conversion. However, these efforts are often unsuccessful because many of them have a “leaky bucket” problem without even realizing it. Product management expert Dan Olsen will show how a company can’t really be effective at growth until it has healthy customer retention. Dan will share advice from his book The Lean Product Playbook on how to think about and optimize your retention to create a solid foundation for growth.

00:05 Introduction

00:40 Product-market fit

01:40 What’s the best order to optimize?

02:30 Which product would you rather own?

04:38 The leaky bucket analogy

06:32 Retention rate

10:32 Cohort analysis

14:21 Retention curves for Android apps

16:22 Poor retention inhibits growth

16:56 Quantitative vs Qualitative learning

17:18 The product-market fit pyramid

18:16 Lifetime value

20:05 The best optimizing order after launch

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How's it going everybody? 00:04 Thanks for coming to my talk. 00:07 I appreciate it my name is Dan Olson and today I'm going to be talking with you about how retention drives growth. 00:09 Uh I won't go into a long background of what I do. 00:15 But these are some of the companies that I help out. 00:17 I'm a product management trainer and consultant. 00:20 And I help companies like these build great products and strong team, 00:22 so B2C and B2B large companies startup companies. 00:26

My Twitter handle is @Danielson and my website is just Dan hyphen. 00:29 Nelson.com I post my videos and slides up there. 00:32 Um and uh basically what I help all these companies achieve is product market fit so product market fit was actually coined by Marc Andreessen way back in 2007. 00:35 In a blog Post that he wrote so Marc Andreessen, 00:45 obviously invented the Netscape browser, a famous venture capitalist these days. 00:48

And it's Adam security, until the lean startup movement. 00:52 And it's interesting 'cause. 00:54 It's popular term, 00:54 but it hasn't really been that, 00:57 well defined and so that's basically why I was fortunate as a consultant working with so many different product companies and teams 00:59 To kind of come up with a model for how to achieve park market fit and that's why I wrote the book the lean product playbook. 01:05

Which is basically a guide on how to achieve product market fit? 01:11 When you've got a new product or a new feature that you're trying to Go from idea all the way to what's that Oh thanks man. 01:14 Appreciate it. 01:20 Thank you so yeah, 01:20 so I thought I'd just start out 01:22 With a question of specific specific scenario that I think comes up a lot, 01:24 so we're all constantly launching. 01:28 But a lot of us are often launching new products right. 01:31

So specifically in that scenario. 01:35 I want to, I want to pose a question to you. 01:37 All that if you just launched I say we just launched an hour ago. 01:40 And now we gotta figure out we can focus our time on acquisition, 01:43 we can go all in an acquisition. 01:47 And optimizing acquisition, we can go all in on optimizing conversion or we can go all in optimizing retention. 01:49 We gotta pick here, so I like some audience participation. 01:54

Just think about which of these 3 you would want to focus on? 01:57 If we had just launched our product who would want to focus on acquisition. 01:59

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