Course  Startup School 2019
July 22, 2019, Mountain View, CA., USA
Course Startup School 2019
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Gustaf Alströmer - Growth for Startups
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About speaker

Gustaf Alströmer
Partner at Y Combinator

Gustaf Alstromer spent 4.5 years at Airbnb where he worked as a Product Lead on the Growth team, a team he helped start in 2012. Prior to Airbnb, Gustaf was Head of Growth at Voxer, and before that, he was CEO & co-founder of Heysan, which was part of the YC W07 batch.

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About the talk

Topic: Business

YC Partner and growth expert Gustaf Alströmer talks about how to measure product market fit, how to decide on a growth channel, metrics that lie about PMF and other mechanics of growth for startups.


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My name is I am going to give you talk on growth for startups. This is going to be for some of you guys not super irrelevant right now cuz you might not not launched and thinking too much about growth. We haven't launched is not relevant. But for those of you that launched does hope hopefully going to be good. So I'm going to cover three different things today. First. I'm going to talk about product Market fit and retention. The reason of that relates to growth so much is because working on growth be before you have properly fit and good retention is not a good idea. The second thing I

talked about it with the girl with the channels and tactics these things definitely apply after you have launched and often after you have a good product Market fit you found something that people really want and then he went to scale it up to the the larger world. And lastly. I want it talk about how you make decisions. When you have several people on your team. You want to start redoing things and you're not really sure exactly if you make an end to all the things I apply when your little bigger so my background I learned most of these things to me talk about Air B&B. I worked on

the Grove team for almost 5 years from where two people until Albertville MN 100 people on that team. This is the team back in 2015 most adolescents. I'll talk to you today. I think I learned their most of you are going to be somewhere on this line. Most startups don't have black market fit Founders tell themselves that they do and they try to convince himself that this is working. But the truth is for most companies is not working. So that means you're going to be somewhere on this line people also have this idea that he can launch my product it will

work somehow is going to work if I just tell the world that I am a man is not now, they're not unfortunately that's not the case. The world is a really busy place and there isn't really lots of people waiting for you to launch a product. They're not standing there and they're not going to try at the moment you launch it. That is unfortunately not the truth. And for many people have never thought of these questions before how do I reach the world does actually comes as a surprise people didn't used to working in big companies or this is not a problem keeping me used to going to school or

other areas with this is just not a problem in this case when you launch startup. It's all down to you. And it's all it is going to be a problem in the very early days. There's a great article the recommend for you guys to read on this. This is called doing things that don't scale. Paul Graham. He wrote that 6 years ago. It is about the early days of the Airbnb story and the thing that's really important about this is Acid found her. You need to keep two different skill-sets in mind as your company grow in the beginning of your company you going to do a lot of things that don't

feel right at the end when they don't feel natural to you cuz not the kind of thing that you learned your previous jobs during school is social like the most kind of Physical real things that you have to do that you aren't going to be available later on but later on Wealthy company grows bigger you going to be doing a lot of things that are are things that relate directly software company. So these are choosing to scale says you have to keep in mind the same time NYC we have this thing where where we tell the company said you just launched you got to do things that don't scale

weight loss of these MBA is the ghost went to school with his head while this idea does not stale standing outside of the store or sitting in this in this elevator to sell people something that's certainly isn't scale correct that it's not scale. But that is what everyone needs to start and if you went to school and you learn they should only work on things. They really scale. You going to have to learn that skill because when you start your company the most important thing is going to do things that don't get comfortable. Idea. This is the early days of having to be so this is sometimes

in 2009. They were just a few people. The article that mention earlier doing things that don't scale tells the story of the first year to a baby be when the founders came to YC. They had spent almost a year trying to get em be off the ground. It didn't really work. This was the first version of the Airbnb website air bed and breakfast.com. In fact, the website itself didn't really speak to you what the what the what the company does it was started as a websites to offer air mattresses to people that visited design conferences and they had to navigate the way to find the place

where I can be is today. What are me join NYC the first question that got from Paul Graham was who are your users and at the time this site look something like this you click on a listing and you had three different piece of information. You had a photo of the other host. You have one photo in this case of the building from the outside and then you have one map where that place was now at the time the only comparison to what s. I like this would look like we'll be Craigslist. So crisis wasn't a lot better than this. At least I met that

criteria, but it wasn't something that would make everybody take off. They didn't really have in the product will make every take off the things that were missing is is this a good listening. How does it listening? I shall look like. Can I trust the host loss of things that were missing that really product and how do you learn that the way that learned that is they went and talked to the house on their first weekend? C program told the funds Bambi you guys go to meet your host for you host Moser Hozier, New York. We don't have the money but most of them are New York the flute New York

Undercover not on a cover. They claim to be hired photographers for Airbnb Avenue breakfast. So when I met with all the hosts, they said when it come by your home and take photos then say they were the founders of that made the company's how much smaller they came after the host. And while one of the founders were taking the photos of the listings to make this look a lot better the other Founders sat down with a host and ask them questions about how what what are the challenges you have another product like what are the things are not working? Can you show me how you use the product and

by doing that they got for the first time to meet the people that wear the customers what they really haven't done before. And they got to see how they use the products that's doing things that don't scale and that is nothing that scares. You can't go and fly to me every single one of your customers, but when you start doing that, you will learn things that you can't learn from a computer. So they learn that just payouts things in the world record this there's a big UI bug on this page or didn't work on the on the Internet Explorer. Well all these things that you can't learn sitting

in front of computer. They went back to San Francisco back to White Canary and they send an email today in the morning afternoon and said Harold the photos. We took of your house there now upon your breakfast. Calm and by the way, we fix half of the bugs that you even less about or we fix the bug that you tell us about yesterday that made the host. Love them and those host became the reason MB eventually took off. Like doing doing things that don't scale fixing the product making the park work for the early Josue which became the backbones of the early days of Ivan B. The

lesson here is that the founders are the ones who make stars take off. The founder you guys are the ones that they make stars take off you going to have to do unconventional things going to have to do things that don't feel right Sterling to do things that you didn't learn in in business school and just going to do the things that are needed and this is basically what the YC batch is about when someone joins YC, we're going to be like you going to launch because that's the most important that you do it now once you go on just like, how do I get users? Like you got to figure out how to

do it and the difference of a company from another company that means sales for other companies that means doing things that don't scale typically people start with her friends and then friends are friends and then hopefully you get one step further the people that are now not your friends are friends and they going to give you a true opinion by a company. Those other people are going to have to reach early on it doesn't really start would like Elantra website. I put up Google ads or I lost my website and somehow it's being discovered. That's not how companies get started. So they end up

much later, but that's not how to get started. There's only one way to grow when you're really small and that is doing things. I don't get all right next topic. I'm going to talk about the stock market fit. This is the terminology that probably most of your part of this is a thing that's been hard to measure or hard for people to say do I have product Market fit or not? A lot of people like to tell them self them that they do have black. Like I said, it's this thing that we throw around as a way to say, my part is great. So now I have black market fit. I would argue that there's some ways

you can measure Prime I can fit them anyway, so you can't so let's talk about the one thing that I think it's the best way to do that. I think that the best way to figure out if I'm pregnant if it is Tuesday unbiased data to understand if you could basically have made something people want The two ways I do that when I start that the first way is a try to figure out what is the metric the data point that represents the value of your company. That's the first thing I do the second thing I do is try to figure out how often should I really be doing that? Gray sample might be start

school. The metric here is like our people showing up to that video talks and start of school. How often is that? It's every week right that's pretty easy. But most companies can be defined as I'll get some example. So Airbnb, what is the the metric represents the value? Will it say bookings in the space? Not the searches searches? Not that it's going to be the bookings in the state. When I travel there be I experienced about you. Now know where is about how often do people do this will travel is actually mostly an annual thing. You don't really talk like

a month. Most people don't do that when we were measuring retention at a medieval annual. Let's look at Instagram. What's the expect that use get me Instagram? It's basically just coming back to Instagram. Most people are not expected to post photos everyday is just going to be coming back to Instagram and viewing photos. That's what most people do and that's fine. That's actually what they want. They want some people supposed to her sometimes but most of time is coming back as a good enough. How often probably every day. I think it would be the new company Gaston Gaston

the most valuable thing that they do for the customers is that run payroll and the pay out money to employees that are there are the employees of customers customers customers. So how often do you run parallel depends? Probably every bi-weekly or monthly and by measuring these two things how many people am I running payroll and are they continually running payroll the day that's the best way to figure out if people enjoy using Gaston if they going to switch to some other cable provider, And finally lift you might want to think it's rides here that arise is the best metric are such

a writers. Like the people that are taking the rides are the ones that matter because it's the individuals that we want to measure here and we not going to sell you want to make sure that the action that they take and that's a probably weekly monthly. So now we have those companies to put my grass one piece on the grass is going to be the metric and the other one going to be the time window. So every single time window we can put some percentage of those people on the graph example on week's arrow in the case of lift. You light a hundred percent drivers. So what I mean,

what do I mean by that? I basically mean that if I had a hunt like this ad 10 Riders this week the road with Lyft they will be calculated on the week 0 Now how many of the writers that I had last week are now traveling with lift this week. That is your week. Not one number and the week to number in a week 3 number now, why is this important? Because we're trying to measure repeat usage repeat usage is the best most unbiased way to figure out if someone is liking your product, it's more true than what they tell you. They might tell you things. But what

they do is going to be the most important thing. So most companies going to be defined as way even if you have it be to become truck company that do annual contracts measuring say what do people do in my product to be a really good way on like this regular basis to even if I pay for Gaston on an annual basis. They don't do measuring the activity. Are you using Gaston on a regular basis is a biweekly or monthly is is the way to figure out a glass using the product the most of the IDS. Even you BVB or consumers could be plotting on this line. My wife is important. Well, if you ever going

to raise money, this is a grasp any buses going to ask for how much retention do you have? Like our people actually repetitively using your product there was nothing there really curious about other metrics. You might have that don't matter. This is a sign of a bad product basically every single week after I saw using this product fewer and fewer and fewer people continue to come back as a product. So this graph can be plotted and basically show but this wasn't a good product. This summer is a good product every week eventually finds out the people that stop in the park. Stop stop using

the product and eventually here at week eight nine ten. We have a line of people that continues to use probably every single week. That means that they are retained. They have you have product Market fit for those who uses for this time. So I'm not going to ask you questions but character sample for two companies that I would argue Hyde Park Market said the first one here has 30% after 2 months and 21% after 20 months is pretty good. So you kept a 50 users 21 months later or 20 months later. Doordash have a monthly pension of 20% 2 years later. You're not

there. There's nothing can be more like a beauty company 80% retention after 1 month. And then 30%. After 60 months is really good. This is really a product very sticky people like this park and it don't stop using it for attention is the best way to measure pocket fit. Let's talk about specific thing. You might want to let that some people think is a better way argued that they're not worse ways to fight MetraPark Michael Phelps net promoter score. Why is it not good or you can just Google the best price and best countries in the

world. They all have that promoted score like the iPhone Apple all in her body in the form. Of course. He doesn't necessarily correlate with good products correlates with deceptions up companies surveys problem with surveys is they are going to be nice. If you asked your users you're going to have some level of bias. There are good ways to you service to improve your products, but he's not going to be the best way to figure out this metric. That is one cool question. You can ask user which is how would you feel if you no longer use this product. Sometimes this works we can give you an

idea but I wouldn't do instead of attention. I will always try to find a way to measure retention. What are some bad weather around is like evidence for your pockets working registered users really bad. That's not say anything about repeat usage or if they like you or not visitors also bad does not say anything about whether your part is going to be valuable conversion rate. We have this conversion rate of visitors to something else. Well, that doesn't really say much because you don't know what people you're converting. You don't know who they are. So this is not say much about

talk much either. And finally something that should be a paid product you're giving you a free is not a good sign if I can fit like you want to figure out if people willing to pay for it because price if someone says I love this if it's free, but if it cost money to use it was pretty bad like them. They're not going to work out for you. So you want to make sure that the people that are doing something with this on this graph if a six pack of you pay for a practice should be paying for all right next action and tactics dissection really applies. If you have practice it if you

if most of the people to come to your product go down the drain right away and they never come back the second doesn't matter. Like why would you work on trying to get more people to product that even if no one is using it back. Anyway, if most people just turning and like it's right ones and then I can come back like don't work at the stuff weight with us up until you have some people they care about your product. You can try to use some of these channels to reach those people specifically this really too Ways you can grow at scale. So when I looked at that team that she saw the photo of every

NBA team they worked on two things that either works. I want to call product growth or conversion rate optimization what this means is you have typically Engineers designers data scientist product managers working on improving specific parts of your product to get more people through that tunnel is a good example and give you some examples, but that's basically why Define is the first action most of us. He will not photo or in this category. They were engineers designers Park Madison do scientists. The second group is going to call Groth channels What channels is basically

Platforms in the world that people tend to discover products on me give you some specific examples Google huge platform for new possibly Scabbard anything that you want to use that is a rare behavior in life. Google that's what you do insurance. I forgot the insurance Google find a doctor Google everything you do rarely is going to be Google which means loss of products have been discovered on Google girl channels. Like Google is extremely important one for many companies. Another one. We might be Facebook Instagram advertising on Facebook

and Instagram is critical to company's growth these days. What I mean by grow channel, that means basically other platforms but your website or app, lets talk about conversion rate optimization. What does it mean every single step of your product experience is funnel the like the retention curve can be measured you can have a metric and I don't think Elliot talked about this earlier stop school school talk when it builds funnels. If you put a message on every single page in your product, you will know what percent of people that make it from the first page to

say the homepage to the booking page in the case of Airbnb. We call the home page P one the search results page P2, and then the booking page and that missing page P3 and then a book and page with P for 4 pages that was entire website. Now, what's the Funnel Vision people make it from P1 to P4? What percent not that many 1% 2% Most people don't make it up for your job is to figure out how many will make it that far? Why are they dropping off? What can I do to increase a number that's basically multiple teams or multiple people at startup said to work on those things every

single step in. My phone's going to have some kind of drop up for some reason. They might be that the content on the page is not suited for them Atlanta Atlanta Airbnb all the content speak to Millennials have a family does not not good content. I land on some other website MS. Contin doesn't speak to me cuz I'm not there that the right customer that's one example of a drop of you can fix a contact content changing the content and I might be allowed on the website. It doesn't work. Cuz Internet Explorer is not optimized for that is not a place that you can drop off you go to fix that.

You lost a different reasons. We want to drop off things that people tend to work on when they work on commercial with Elmo Station International station, if your website or your project is international translating it the product is really a good idea. We saw the MB now I've seen on Facebook I've seen that many other companies for translation is is is really really important authentication. Most product have some Flo where you're signing up now that flow probably your products to have some kind of a Temptation flow. That's always a very Critical in the uses are kind of Honorable in

that case cuz they don't really have time for too much friction. So it is not working. Perfect. That might just go to the next website. So make sure the authentication for works really. Well look at the best website in the world. Look at Pinterest. Look at every beat look at some of the size. They have teams optimizing these beasts Lowe's copy what they do. They're probably figure it out. There's been a lot of time off my Ting, uhm boarding. This is a huge effort specifically for products that need a lot of involvement from the users to be able to become active users. Send a lot of

questions. You might want to ask her lie on a new product the more we can all more users by asking them questions that make the experience better the more active in the motor chain, they will be so I'm mourning the loss of things you can do. And finally purchase conversion when you're about to purchase the lot of things around urgency and scarcity and just user flow in you I all of these things matters and that's another great example personal off my station channels, so I don't get here until you have some good sense of that that this is something people want

first one. Like I said earlier if this is a rare Behavior most new ideas are a behaviors are there because they don't exist yet or because they're not something you do everyday. We tend to go to Google to learn about things. We don't do very often. So that's why if that is the kind of part that you have being on. Google is going to be really important to be out on Google through paid marketing to CM or to SEO. Check on a second second. That's your product or the people or to share your product through word-of-mouth. So some products are viral his nature to sound really exciting to

talk about Lyft and Uber and Airbnb are examples of those if that's the case you want to make sure you folks on morality and referrals. What does that mean? Is he building entry of product a flow that friends can tell other friends about the product referrals is a way that you can do that by giving some kind of financial incentive. Does the project better if you have more users listen to the marketplaces but is specifically to for anything that social so I can think of a LinkedIn or Airbnb LinkedIn or Facebook been having more people on the prize going to make it better is going to be really

important for you to get more people and those people on your side's going to be the one to doing it. Even if it got a good viral Loop LinkedIn the first thing they ask you a Mite more people that's because your experience get better there more people on LinkedIn now many products do work this way and this can be perfected and the ones are really succeed in the world. All of them are the ones they really nail this down to figure out this really well many people to make social not underestimate importance going to be to get to get your friends on that product. If you can make a list

of all the customers even if Alice is a hundred thousand or five hundred thousand as long as it's not mainstreaming out, they'll be in the tens of millions it probably to do sales to make that list you start counting those people why make it any more complicated why go out and reach the world for people if they're only a few people. Do you really want to reach so most companies NYC these days by asking this question. Can you make a list of the customers make a list of decision-makers in those companies are trying to sell to these people make a list email addresses phone

number try to figure out how to reach them to start making a list. Don't make it Complicated by going out in a in a world that most people aren't going to be relevant for for your product. And finally, this is a channel that now Des is bigger than it ever has been and more important than ever happen, which is if you look at how the entire world starts changing last 10 years more and more than returning more money and are therefore getting with call that hire High LTV High lifetime value by Kenny High lifetime value your enable inability to buy paid advertising. You don't have people

paying for products. Are you making money from your product should not be spent time on my marketing not a truth is that most companies these days are charging for the products. They are making money from the product and therefore they spend money on marketing if that's true for you. Just give me an extremely powerful channel. The biggest mistake Founders made is to start working on my marketing when they don't have people paying for the product. Hersman said you probably didn't think of most really big companies didn't use all those channels that use one or two channels. I

think of a TripAdvisor. How is TripAdvisor big? SEL you guys having something on Google you want to talk about soccer and that's how you found. This website most companies have how to set up where there's going to be one or two channels that really matters. Everything a Pinterest SEO is the rate the real way. I've been just going to type something on Google that were the excessive engine for that you land on that kind of bored. So they acquire new users. I am going to get some specific tactical advice on some of these channels. The first one to talk about is our Frozen morality. The

referrals is what am I? What am I strong driving a good product? Then referrals is going to be one way that you can amplify That Word of Mouth. How do I Define referrals a financial incentive to tell your friends about the product? That's my definition. This is the NBA referral product. You give someone $40 at 9 p.m. Be when they do I get $20 pretty simple concept on the website and on the mobile app. Now that's Action Pro, Can they might think his entire product funnel for this multiple sets and if I'm not going to go into details here,

but if you think of it are full of product is not just as simple as throwing that offer of the probably wondering the very beginning but once you have our faults, are you want to start measuring each of these that's like what is that referral offer? I need to go to that page how many people send invites how many of those they might have been clicked on how many of those people sign out from those invites how many of those people that sign up and up booking each one of those steps is that in this tunnel? The second one specific stop the referral email invite so we would spend a lot of time

out to my son this this this. Because there were lots of people getting their referrals email in vitamin B. So what are the things you can optimize on a referral invite email first? Who's the senator of the email? If it's just a B&B I probably would not have never heard of it and be with the first time I got this email if it's Gustav, listen to email and I sent you my friend I ever heard of me. That's a reason to open the email people having to email clearvalue. What is this email about many emotions start with text don't start with tech how to clear value prop of the top. Why

should I care about this email in this case is extremely simple Goose have sent you $40 for your first trip. That sounds good. What is that about? When do I have to care about this by this date in the next month? So I can't just leave it to email the never open again. I have to do it right now. What do I have to do here while I could stand up which is a undefined thing. They can do sometime in the future or I can do what we did here was accept my invitation the sounds more exclusive sounds like something that is just for me. It doesn't sound like something I can do anytime in the

future and finally hear some social proof from this email. This is me. I live in San Francisco can reveal that. I actually been a member of MB since 2009 and we can reveal that as well. I'll talk about Pedro's each of the sections referrals Pig growth. SEO could be a presentation on his own. So it's impossible for me to go into deep details on this. But if you're determined that you have Prime I said you want to go on these channels and this is the challenge you want it you want to go deep on you going to have to go really deep on it because being really good at one of these channels

require a lot of work. So there's a lost my stuff online about how to get really good at one of these channels. It doesn't really make sense to get good at all of them as most of you want really need all them at the number one lesson in Pedro's I ate all my marketing is to not do it if you unless you have Revenue This is the most common mistake that Founders make it the summer. I start buying ads for products and they'll never be able to pay them back. Don't do that. The next thing I want to figure out it was what's called CAC customer acquisition cost. How much does it cost to acquire a

new pain on your valuable customer? I was giving you value value vac manual controls like Google and Facebook have a very clear system for how they calculate this. I want you to running a still start telling you what the cost is going to be Max is going to be that your Revenue projected revenue from this user is going to have to be higher than the cat hide on the cough personable. Otherwise, you can't do this. So how do you know this is a common question you get early on and paid marketing. Well, it seems like an 8 months. It will be higher but not in the first month, but you can't

take all your money and spend on something that you have. No clear certainly always going to happen in the future. So you going to have to either wait eight months or you going to look for early indicators that your hypothesis about the values going to be stronger. Don't wait a month just have a much lower Health like a much lower Target on what your taxes going to be. Maybe one month to month 3-months first first transaction something like that. That's much better. When do it the main channels for Hallmark in these days is going to be Google Facebook Instagram. Pretty much it. My

search engine optimization. This is changed a lot in the last couple of years is a very competitive and what changed is that used to be millions of websites to each would rank for tens of millions of keywords. I've changed is that the really big companies so I can never getting really good at drinking for all those keywords. So I Pinterest or a TripAdvisor my rank for every single talachy where you can imagine that's hard for small companies what that means that if you were going to rely on search engine optimization to grow you going to have to be as good as a Pinterest or where

TripAdvisor eventually not right away, but eventually because it's so competitive to win in this grant like large rolling a seal when you get started you can think of this way as he always has is a zero-sum game you compete against others and what you doing. SEO is going to be a matter what you compared to others. The second thing is that the keywords that people search for changing constantly to view building something new. I say ASMR, I think we'll see a thing that came up recently lost a Cummins able to ring for that cuz the new keyword there weren't website built 10 years ago the

right for that cuz the thing didn't exist. Alright, let's talk about SEO fireworks in this knowledge aside. This. Is there a Ruby search results page. This is what you and me see when we go to the MB is a Google C2C text. So to be good as to what you need to understand what text am I showing to Google so good with him staying with my place about who we can't understand what you say is about it's not going to make it. What are the two main levers precio? The first one is going to be things. I do on my page so far sample What's the title of a page? Can Google read the the page the page

throwers? What specific page am I see? What am I trying to rank my page for but start with the key words do some research and see what are people searching for how many people searching for ASMR in in in your message per month for that key word will build a website is trying to write for that keyboard start in that that start with Google don't start with you. You don't know exactly what's working 4th June to start doing some research. The second thing is the thing you can't do that much about which is called off page optimization or domain Authority or something like that. You basically

means how valuable does Google procedure website to be in the grand scheme of all websites and the more inbound links to get from press the more links to get from all kinds of people. That are also thought like how high Authority the more valuable you are. So I will be in there in the eyes of Google which means it will rank you higher on some like you were just trying to rank for because you will compare you to other website and see if they seem more or less authoritative going to need us here by the space it when I go to work if you can Google pay track and go to the Wikipedia article on

page. Please explain for like high-level how Google works find section. I'm going to go to this one will faster. Most of you don't have to focus on a b testing at all. It won't matter for a long time. It is a great decision making tool later on. Perfect situation to start 10 to get into I want to launch a new homepage. I want to watch a new design I did and the numbers went down what happened to really hard problem to launch something new and Central like just look at that the message all the time. Don't do that. There's a better way before

you get into the station to figure out is a b testing something I want to do. The best way to do that is to go to Google and type in a b testing calculator think of the metrics. They trying to change her so I can visitors to some conversion metric put them into the first thing you see on Google and I'll tell you whether it's going to be doing most of it won't be worth doing for quite a while. So here's example I trying to give you on the website. I want to ship a new experiments that were new design of the homepage. So let's ship it the message going up or down. By the

way, like I don't know if the website actually cost that are not the only way for me to know if this new design actually change the metric is if I had an alternative alternate side of History Pikachu sites to different parallel universes same time one with a new design and one with the oldest line behind. I can tell exactly what happened. That's the definition of a pissing you basically have two different parallel universes of the thing. You shipped the same time and you measure the metrics that matter to you. The reason this is so powerful. He helps you make decisions at scale ends up

happening at Founders when they get five or ten people in the company and the launch a new design and they arguing about what cost a thing to go up and go down all the way to really know. Is there one may be tough to figure out what is the metric say about what it would happen. this is hard to internalize because most people think of the south on us as good price could talk thinkers be coming here think that you guys have good product and thinks that she has I guess

I found it you have you should have sex. All right, let's see if they are examples so I didn't beat we launched a new sharing sheet for that mobile app. And this was the old version which was the inmate you sure she gives you an iOS clicked on chair and then you see my share options more options for this experiment with Native. So the question was which one is better. Well, we don't really know so we launched an AP test belongs to both of them at the same time for different users. The goal here was a measured number

of shares. So all right how many hairs think that the control was better? How many people think that this experiment was better? I'm evil father. No difference. the becoming Live at 40% better for us to think I'll go to my experiments. Cuz if this was the decision making group that we would have made a great solution next one. Should we have a sign-up wall or not in the app, but these are not necessarily learn as you can apply to Cumby's right away, but it was an important decision for us to determine so should we

have people just open them be up and go straight to the app or should we have an experiment if you can click out Annex office on that wall, or should we have a son of wall that is it a wall that you can't climb over have to sign up. Otherwise you can use every app which one is better. I'm here think that the control nose on a ball better for your hands. How many people thought that the experiments were you can X out and then sign up with better? I mean.. Just like this wall you can't climb over is better. I just use my people, right this is a lot better. We got 2.6% working

from IOS by making people sign up to a SonicWall. And then why is that what we knew something about them so we can send you can show them more personal stuff and when they were about to book we already have them sign up. So then have to at the time of booking go through the motions of signing up doing to learn. Why cost this whole point is basically when you get big enough we trying to grope you have these decisions about should I launch this thing or not? This is a really good way to do. It partitions a really hard so you can take up to two to make them. It's a good way. Most of you

won't have to worry about this for a while, but don't worry about it. Chris is summary of my talk today. Most of you need to do things that don't scale you are not at the place where you can think about Real gross things that gross teams. Do you have to unlearn the things you're learning a big companies or an MBA programs and just do things that don't scale. Secondly, you want to measure your attention to understand if you have product Market fit there other ways to but that's the best way in my opinion on 3rd. You want to build a culture culture face presentation you want to use

data and not have the loudest voice in your room to side with the best decision is but you want to use data experimentation to decide. What is the best position right now, but it will not at some point. Thank you. Do you have some questions a couple questions section died Soviets can be by us but only paid users will be accurate to measure product Market fit. So I admit it if I'm in Marketplace start up at what stage should buy measuring should I be measuring pragmatist?

So think about what the message might be? The first metric is probably on one side the marketplace the supply how often are they coming back or do nothing that they're doing? And then the other side is the man, who are they coming back and doing what they doing? Hopefully, these are not like me was like once a year under the mat is more frequent and not cuz then you can measure by the way. There's no need to win in case of every beware Supply would happen every month or every couple of weeks. I'll just really want to measure and see if you are. You sticking around if

they're sticking around that means in the doing their hosts repeatedly, that means there's something good there on the demand side depends on how long it'll take to get the second book in the demands, but I would match the both of them like pretty early like if I was an investor and I will meet with an early early Marketplace start. I would want understand what is repeat you certain I decide that's the thing I really care about so I would want you to measure right away. Now that measurement is not going to solve the doing things don't scale. So there's a thing you do in the background while you

doing all the things I don't feel A concussion local search on a position versus National. What is she different focuses very much on the local. What should we care about? You compared to Natural. The question is what matters more for local search? I worked until exactly what matters the Google algorithm is a black box. So it's hard to say the most boring thing that I would say the medicine. Google is to really think about what intent intentions does a Searcher have when they put something into Google. So if I look for apartments Apartment

San Francisco, what can I be meeting like renting apartments long-term? I took it meaning of short-term rentals. Give me a lot of different things around apartments in beating like the concept of Apartments the more you understand about the intention of the people that are typing a specific keywords. If I type in coffee shops on Mission Street. Probably high intention that they want to go to coffee shop on Mission Street SF first thing. We really figure out is like what keywords have that high intention for the things that I suffer? But no cold water for blood look like a castle look

like if it's like if someone says like what are fun things to do in CLE or what are the art shows in Oakland like that has a clearly people to live in those cities that deserve any most violent for anyone around for all of it because you're not going to sit in Florida and typing those two things most likely so I will just try to understand what are the keywords that matters to you. And what is the intention behind us tours? Topic of marketplaces in my users are buying at different rates for buying a few months just to

give me a sample. I run a website that can make time to creative entrepreneurs for are working to be when you die, but weak when someone's I said, how do I measure for a retention? How do I measure that raised the question was at the marketplace for people buying graphic design. How do I measure the Park Market fit on each side of if people have different sounds for life cycles through which the one they buy that but first I would figure out who are these different people to have that just different Cycles? What are

they different kind of companies? Is there one group? I'd rather focus on the in the other. If I will lift I rather come people to travel daily then people that have a yearly so that makes more sense for me to spend time on trying to acquire more of those people. So your case, I would try to figure out what the intersection between the most valuable people that are the most frequent. It's rare that you'll have massive differences in retention and they're both love your product that makes sense is very rare that you have people use Uber once a year and then you have lots of people

use it everyday and somehow that you should be fixing them both. If you have people using it once a year, if you are Uber your goal will be to get them to you through more often. So I will try to think of like, what is the ideal you say is that how awful they will be using what I'm doing? How often do stars new graphic design and if they only knew you once a year probably not gotten the fracture point, where are you thought of all these kisses they would need for graphic design. That's probably a lot of other things everything from like Legos the website designers how many pages to

sticker so I can do silly things like it's more of these things that you can incorporate into your offering probably you got morphine uses, but I would Mash are both on the supply side that the signers how many jobs are they taking on the marketplace are they stopped to take jobs? If so why this is typically in the early days source of ideas for a road map. Why did they stop using my product talk to them? Call them email them do anything. You can't understand why someone stop using your product cuz that's what you have to fix. Airbnb

air bed and breakfast it was like a I can go tell you how it was that the difference between experience of people, to try and baby anything for me might be very very high-tech question was at if the quality of the bereans of a product early days is very different for different people. Like how was that for a movie because you have to write a different quality experiences with different experiences in a Marketplace. You want to make sure that you deliver consistent experience. So the best way to do that is to do some kind of reputation system so I can be one of

the best decisions early on this year have the money the payments go through the platform. And once you paid your allowed to give her view, but only that only people that stayed with someone and pay it and get rid of you. Once that you had that review. You can start weeding out that host and promote the good one. That's the best way that I can give you that will deliver cuz of the other experience have a new host. How do you know if it's going to be consistent? You don't really know so it's a new driver on Uber. You don't really know you have to do that. You can't remember them. Two

more questions if I back it take it something out there really quick. So we're done. So and I'm kind of laid off the bat or just put it out. The question is I have this product I could charge you right away, but I'm not sure if I want to do that cuz that might turn away more people. I always say the true. You should probably charge for parking right away. Because otherwise you going to build for people who prefer the free version and you going to build the

features that the people that prefer the free version would want which isn't necessarily the people that value the product is a good example here. Maybe if I build something that can both work for consumers and companies. Should I charge for it will consumers going to let much less like the paper than companies. So companies are the more valuable. Once you should focus on the features, they want to build for the more valuable customers. So I would argue probably charge right away and if you don't charge for it, it's like asking your friend what you think about this product?

Turn on the light up charger right away you want answers for anyway. The questions that one should I watch this because I have more ideas of things. I want to work on this most people charge too late as I launch too late and not too early. So and if you lost your early like at said you have another many many opportunities. Once again, the launch is not this big dramatic moment where you get judged by the entire world and if they say no then you come back again. I've never seen a company die from

losing customers in the first two weeks in the first week. Basically, you should launch right away. That's the answer and if it doesn't work once again last question are there. You can optimize your attention yet. So there's no product Market fit in the product isn't coming isn't shipping till discover me about Fox News Watters right now. Do I what do you think about adding a paid position? Cuz I am getting that Revenue but the question is I have a harder product.

I've been launched yet. I'm a spider so I can't make it by Mark if you don't have to work at all because it doesn't matter you don't you don't really know if you don't use your pocket yet cuz you haven't felt it so that that's the truth hear your goal is to launch it because it's more expensive than just a website. You can eat a lot more money to launch it as long as the cat shelter. We work out that you are paying some money to acquire people to kick-start and you get more money back from those people you could do paid. You going to have to be very good at understanding those two things?

Measuring the difference between the captain Al TV and I don't know what to wear some Pixar provide the tools for you to measure specifically the people that came in through your ads and the ability to measure the the return on investment for those people. But that's the thing you really need to figure out. I think it could be fine. If you know what you're doing. I think it's risky to spend money on booze in Kickstart product. I think what I've seen on the most of the successful ones, what they do is a try to get their friends early on in the in

the in the product in that launched so they have momentum right away and then momentum is South will carry on the kickstarter campaign. That's what I've seen. Thank you very much.

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