If you’ve been around the tech industry the last couple years, you’ve heard a lot about growth hacking, or, the practice of finding innovative ways to accelerate the number of users for your product.
While the practice is often talked up to sound almost mystic, no growth hacker can bring you tens of thousands of customers with the wave of a magic wand. In reality, growth hacking requires quite a bit of analysis to deeply understand how customers use your product. As they say, you can’t improve what you don’t measure.
Your company may or may not have a designated growth hacking team, but the practice of understanding how customers use your product in order to drive growth is a crucial component for every business. Below, we outline a few of the growth hacker’s secret weapons.
Spot & Optimize Key Problem Areas
A central part of a growth hacker’s job is discovering where and why you lose customers. Simply finding and optimizing one key area where you have a large drop off can have a ripple effect, leading to a major improvement in your overall conversion rate. But in order to do so, you have to first find the main problem areas so you know where to focus your efforts.
The best place to start is with Funnel Analytics. This report is built to show you exactly where you have the largest drop offs in your conversion funnel.
The example funnel below shows the conversion process for Facebook users. The conversion steps are:
- Complete sign up form
- Confirm email address
- Add 10 friends
- Complete 60% of profile
We can see from this funnel that there is a major drop off at the “add 10 friends” step. This is of course a critical requirement for a user to get value out of Facebook’s product as Facebook is essentially useless if you aren’t connected to any friends.
Clearly, in this example, Facebook’s growth hacking efforts should be focused primarily on getting new users to add friends.
Learn more about how to build and optimize your onboarding funnel.