You are not your product's customer

But building it for you is a great place to start

Editor’s note: this essay tackles a problem my cofounders and I faced a few years ago during my time at Dribble. This conundrum is still prevalent for many founders today. Additionally, I am currently a digital marketer at GoCardless but remain an investor at Dribble.

When building your product, it’s natural for you to build it for yourself. I mean you are building this product to help with a problem you personally want to stamp out of existence, right? At least that’s the case for many.

So building the product for you as a customer is a great place to start.

The needs of a few can skew the needs of many

The needs of a few can skew the needs of many

The early users you acquire buy into your solution with a significant time-investment. Early product releases are never perfect, so the users who stick-it-out become your “power users”, providing valuable feedback (about themselves) to help make a better product (for themselves).

The early employees you bring on will have hopefully found the same value from your solution, as well as, buying into the long term vision of the product, so soon start building features to help maximise the reward for your “power users” (and themselves).

At this stage, you are building a product to solve the problem for you, your early “power users” and your early employees. That’s ideal right?

Yes, but only for a fleeting moment. It’s now time to think bigger.

Market Problem

Your target market

Your target market

I personally experienced this conundrum when cofounding Dribble at university. Since we had the solution to a niche problem, the logical use-case was to target those just like us, other students. So all growth, acquisition and product development efforts were tailored to them/us.

If we stuck building the product for ourselves and the university lookalikes, we would have failed, since the market problem was not as prevalent for the segment. The real market problem was with a demographic, polar opposite to students….employed people with disposable income (also football fans and regular punters). This was the potential customer base we were missing and not building the product for.

So, we changed our product and messaging to accommodate. Changes included:

  • Copy. From millennial slang to more succinct and professional. Like SPORTBible getting a job at Sky Sports

  • User journey. To be less around the social side of playing with your friends, to playing to win and making money on the platform

  • Acquisition. To target those that require a higher CAC since they are more affluential

  • Branding. To suit the professional sports fan rather than the young student (notice how young = ⚡)

Dribble logo 2015 - Dribble logo 2016 (which has now changed again in 2018)

Dribble logo 2015 - Dribble logo 2016 (which has now changed again in 2018)

By coming together and working on all (and more) of these changes, we were able to start an ongoing iteration process that lasts today. Thankfully we learnt the lesson laid out by Casey Winters, the growth lead who helped scale Pinterest:

“Your customer focus should always be on new or potential users, not early users”

As Casey mentions, once early value is established, start building the product for the larger market problem. The problem which is incredibly diverse with an insane amount of use-cases. This new product must iterate, grow, evolve to be a living breathing solution to the larger market. Then, and only then, will you have a viable product for the long term.

Dynamic, not static product optimisation is the key.

Shifting away from your early "power users"

Your early "power users" are the dark side

Your early "power users" are the dark side

When tackling a problem, you start with trying to monopolise a small niche within the greater market. If you’re a fantasy football app (using our app as an example) you can’t just jump into the whole sports market as you’d immediately be drowned by insane customer acquisition costs.

You start by focusing on a much smaller but highly engaged (daily fantasy) market.

Listening and learning from your early power users will help you reach great heights within your small niche. But remember this is just a small piece within the greater pie. So if you get stuck only listening and catering to their needs, your growth will be stunted since the ceiling of potential is mapped to that small piece.

Shifting your product and customer acquisition efforts to the wider market at the right time and shifting away from the power users, will hold you in good stead to address the much larger opportunity. This should only be done once you’ve reached product market fit.

How do you know when you’ve reached PMF?

In short, it’s when you have a product worth using by at least a sub-segment of the market. Questions to ask yourself:

  • Is my retention curve flat after 1, 3 or 6 months (length of time depends on your business model)?

  • If I turned off all acquisition and retargeting efforts (including push notifications and email) would there still be healthy usage?

Do note, this essay does not mean you must forget your early adopters. Building a community around the ever growing use-cases and user profiles is the best way to keep engaged your early and current power users.

Conclusion

So, even though your early power users are valuable at the beginning, be aware that they will bias your experiments, skew your data, make it harder to find new users and ask for features to help only their experience. (Note that an increase in power user engagement will be negligible since they’re already using it so frequently.)

The real value is to build the product for your potential customers, focus growth and development on the new users and be the solution to that larger market problem.

-

The aim for this essay is to hopefully dispel any early founders from making a similar mistake my cofounders and I faced. If you found value in this essay and want others to see this, please share.

I really appreciate it!

I'm re-invigorating my LinkedIn profile so feel free to connect. I'm accepting all connections :)

You can find more of my musings about growthstrategy and user acquisition on my site Bright Fund, and if you’re feeling quirky you can even subscribe. Alternatively you can find my Medium publication, Bright Fund.

Are There Really Only 19 Channels For Growth?

19 channels for hockey stick growth

The ever sought after hockey stick growth graph

The ever sought after hockey stick growth graph

When strategising on how to grow Dribble, the book "Traction" by Justin Mares and Gabriel Weinberg (which is amazing), was a go-to resource. They did a tonne of research into customer acquisition channels, interviewed startups and founders to hear their success stories on how they grew, and ended up with a pretty concrete list of 19 channels for growth.

The theory behind this list is that they are the only true channel that spur on growth, and within it you can find the 1-2 channels that will scale your business. However, I wanted to dig a little deeper into a few success stories to understand whether we need to add, subtract or keep the same number of channel groups on this list. 

Customer Acquisition Channels

Here they are in all their glory

Here they are in all their glory

 

Let's dive in

Andrew Chen wrote an incredibly fascinating article about "what's next in growth", where he actually looked in the past to predict the future. Personally this article gave me greater foundation in how I foresee the evolving growth landscape. If you don't want to read the whole article here are my key takeaways: 

"technology changes but people stay the same"

-

"ignore quick growth hacks. Only trust ideas that are 100+ years old"

-

"growth opportunities will come from taking classic strategies - the stuff that's been around for 100 years - that are fundamentally anchored on human behavior, and anchoring them on new technologies while executing them"

-

"growth opportunities follow: classic strategies x new platforms x smart execution"

When you think of growth you think cutting edge, you think new, you think tech-enabled. These are all true, however, the channels listed above aren't new concepts. They are not new channels that have only arisen since the launch of Uber, Airbnb, Facebook or Slack. They all came about many years ago - think pre-world wide web - and will remain 100+ years longer. As Andrew Chen quite rightly stated, they are anchored on human behaviour and we all know that hasn't changed...ever.

Let's look at some of the channels we might perceive as "new":

Engineering for growth (side projects)

A beautiful FREE stock photo from Unsplash

A beautiful FREE stock photo from Unsplash

Definition: the building of a product or service that can have a positive impact to your core product or service.

Who - Crew and Unsplash

What did they do - Crew gaveaway their remaining high-res photos on a standalone site, Unsplash, with the goal to funnel in a new batch of users. The site was an mvp, they posted it on hackernews and waited. Within 24 hours they maxed out Google Sheets subscriber limit (it's 20k if you don't know) and funneled across a whole new set of users to Crew that envigorated their business. 

Why did they do it - they were running low on cash for Crew and needed to change their business model to stay afloat. Not only does this channel mean one builds a new product to influence another, it is anchored on a seperate growth channel, virality (wom)

Human bahaviour that influenced growth - since they gave away a VALUABLE in-demand resource FOR FREE, the community responded extremely well, spreading the word organically.

Old example of when it came about - the concept of side projects to influence a core project/business is not a new phenomenon. You see this a lot in the music industry. For instance, in 1978 the group KISS decided to run side projects where each band member simultaneously launch with a solo album to help boost the overall bands popularity and sales. Just like Crew and Unsplash, it worked. 

Existing platforms (OPNs)

The now infamous Airbnb cold email to Craigslist-ers about hosting on Airbnb. From the anonymous Jill D...who was most likely Brian Chesky himself

The now infamous Airbnb cold email to Craigslist-ers about hosting on Airbnb. From the anonymous Jill D...who was most likely Brian Chesky himself

Definition: leveraging existing platforms or networks to grow your product/service. 

Who - Airbnb

What did they do - they found that the majority of their users and the overall market were listing and renting their houses on Craigslist. Ingeniously, they developed a way in which any Airbnb listing was given the option to list on Craigslist (even though it was not allowed), giving them much more reach than organically through their own products. All click throughs were re-directed to Airbnb and now we have a global phenomenon. This was just the beginning...they managed to do A LOT more to make it where they are now

Why did they do it - through market research their target market was already on Craigslist and wanted to leverage their network to bring on growth

Human bahaviour that influenced growth - using OPNs, you leverage any behaviour the existing network has already tapped into. This means the behaviours vary depending on network and whether they already "own" your target market.

Old example of when it came about - Brownie Wise from Tupperware, back in the 1950s, leveraged other peoples networks on a smaller scale (it can also be seen as an affiliate network). By tapping into the small gatherings of women to showcase the Tupperware product and sharing revenues with the women, Wise built a vast network of other peoples networks to grow the brand. 

Virality (word of mouth)

Snapchat logo - how's your Snap inc. stock doing?

Snapchat logo - how's your Snap inc. stock doing?

Definition: in the case below we are using an organic viral channel, word of mouth. Not to be confused with artificial viral channels such as referrals or viral loops.

Who - Snapchat

What did they do - initially launched the product in college campuses (a select few) in the hope of initiating natural word of mouth. Although this tactic didn't succeed as planned, launching the product in select high schools did. Within a a few months the product became viral with main source of growth being WOM.

Why did they do it - cheap quality growth. It is inherent to the product that the word be spread because people need friends to send (naked pictures) snaps to. The network only gets stronger the bigger it gets. It's also the dream if your product inherently attracts new customers by being freaking awesome. Everyone wishes it, but only the few can capatilise. Has to be both organic to customer experience and expertly executed.

Human bahaviour that influences - Evan Spiegel believes Snapchat "makes communication a lot more human and natural". In this broad statement, he must also be referring to another human behaviour, sex. People enjoy sending NSFW pics to people since they last between 1-10 seconds and given the relative toxic environment high schools can be prone to, Snapchat was a great fit and spread like wild fire. Of course not all snaps were nudes, but you get my drift.

Old example of when it came about - a long long time ago, before internet, advertising, or any other formal marketing technique. If something was good, people told other people. Simple. But in 1970 - George Silverman, a psychologist, pioneered word-of-mouth marketing when he created what he called "teleconferenced peer influence groups" in order to engage physicians in dialogue about new pharmaceutical products. And that is all I will be talking about pharmaceuticals...

Influencer Marketing

Kim and Kanye = influencers

Kim and Kanye = influencers

Definition - leveraging the network, influence, brand and trust from a person of interest (someone with a following) to grow your product or service

Who - there are hundreds of big companies who use influencer marketing, from the likes of Nike, Adidas, (pretty much any retailer), but I thought I'd give a little guy a chance - Dribble

What we did - found a niche on Instagram and Youtube across football fan pages of Premier League teams and "signed" their accounts to our "network". This later became a standalone influencer agency called Ninetylabs. We designed all creative to be posted across accounts and managed the campaigns across 100+ influencers totalling a reach of 10m football fans.

Why we did it - drive growth from a very active following and capatilise on the influencers trust. The networks we were creating already owned our target market.

Human behaviour - trusting a peer. The influencers build a following based on trust of their brand, tone of voice and opinions. Can be very powerful when coupled with a product/service that matches their audience

Old example of when channel came about - influencer marketing came about in the late 1800s with the likes of "Aunt Jemima - Pancake Flour", leveraging a fictitious persona to be a trusting face, name and character to sell flour. This was an artificial form of influencer marketing, since they made up the character (similar to Santa Claus from Coca-Cola). A little later in the 1920s Babe Ruth (the baseball player) was used to sell Tobacco chews. That could be the first real example of influencer marketing leveraging his fame and influence across the sporting communities in the US. Very interesting to see now how the adoption rate of influencer marketing has sky rocketed with many agencies popping up, such as, Butter Milk

What this means

The common denominator here is that all channels were invented/created/established a long time ago (50-100+ years ago). You can pick and choose any channel on the list and find the roots run deep around the cusps of revolutions and the beginnings of corporations. In light of this, I do believe the list is robust enough to maintain all 19 channels.

From the early days of these channels, the medium or platforms which customers are acquired has changed, however, the human behvaiour that drives said acquisitions has not.

That means one can predict the channels will remain the same while the platforms and technology will differ greatly.

The Future of Growth   

With this in mind, the new technologies will be leveraged across the classic channels to be executed in a way that will drive real growth.

Inspired by @andrewchen

Inspired by @andrewchen

Using the above image, try to imagine ways the classic strategies can work with emerging technologies. Such as:

  • influencer marketing with VR

  • building a machine learning side project to help facilitate growth 

  • leveraging A.I to analyse creative and copy to make better design decisions across your online advertising campaigns.

Today you are starting to see some of the lines blurring, especially in the advertising industry where automation is taking over ad exchanges through programmatic. 

In conclusion, this has lead me to believe the customer acquisition channel list is robust enough to maintain all 19 channels. Each channel has a deep rooted history anchored around human behaviours. This pairing is vital and can be leveraged across any emerging technology, and that's where the innovation will lie. Emerging tech and emerging platforms will be where people win and lose. Keep an eye on how you can use the 19 channels and strategies across the new platforms and tech popping up. There is a movement happening, better get in front of it now. 

In addition, the channels themselves are intentionally quite broad terms and we should actually call them "channel groups". Reason being, you can have a load more sub-channels within each of them e.g. "content marketing" can mean either podcasts, infographics, video, long form blog posts etc etc. So one channel group can represent 5-10 channels, meaning the list could actually have the potential of being 190 in total. Other groupings are: "viral marketing" where you can have organic virality or artificial virality; "influencer marketing" where that can be guest writing on blogs or influencers on social networks. You catch my drift. 

Brains

Brains

FYI when using the customer acquisition list to form your growth strategy, in my last essay on the "4 things I wish I knew when cofounding my startup", I reference you should not go through this list in an organised fashion from top to bottom, rather through deductive reasoning by looking at your core business model and specific KPIs to judge where to begin.

E.g. if you're a mobile game whose goal is to hit 1m active users within the first year, 1-1 "sales" maybe won't be that channel to scale your business. however, would probably work if you're a B2B SaaS business selling enterprise business intellignence tools (since they'd probably be looking for 10 enterprise clients).

From there you can use a few growth processes to get the most out of each channel. Such as the G.R.O.W.S process, courtesy of the Growth Tribe.

P.S in light of the 19 channels for growth, the way Justin and Gabriel (yes we're on a first name basis) prioritise where to focus is through bullseye targeting. I will jump into in a follow up essay about this and how I aprroached it with my team.

If you like the above, feel free to check out "how I launched my iOS app" and how I'd improve it. And don't forget to signup to my newsletter for early access to content.

4 Things I Wish I Knew When Cofounding My Startup

Sharing what I wish I knew when cofounding my startup, Dribble

Brains

Brains

When you're in the (startup) trenches its pretty difficult to see over the banks. Not only is there a wall of dirt in front of you, but you are also victim to tunnel-vision. You're working on that integral campaign, feature or creative that NEEDS IMPLEMENTING ASAP, no matter how small it is. In fact, there's so much tunnel vision that the size of said feature or campaign doesn't even register. To you, it's the be-all and end-all. The only thing that matters.

This has happened to me. A lot. Trying to keep an eye on the big picture while getting down and dirty with growth is no easy feat, and I'll be honest, it's still an ongoing battle. 

But, now I'm here writing this essay roughly 2 years after those trenches with the luxury of being able to reflect on what I wish I knew. And oh how it looks so easy from here. How simple, how rudimentary. I have no idea why I struggled so much. 

And that my friends, is why hindsight is 2 things:

  1. 20/20 and,

  2. a b***h

So here's what my passed self would have loved to know before getting in those trenches. 

1. Your product is a leaky bucket.

No shame in knowing that's what your product looks like. It was the same for me

No shame in knowing that's what your product looks like. It was the same for me

Plug those holes before you start trying to fill it

Get those rose tinted glasses off and be real. Your product is a leaky bucket when you start off. Before starting to really implement any robust growth strategies, start from the bottom of the funnel - your product. 

Only once in a blue eon does a product overflow with growth because it's bullet proof right off the bat. Snapchat is a prime example of attracting growth and being pretty darn close to bullet proof since launch. However, it wasn't perfect - they still had a lot of work to do. Even if you make the holy grail that shows early signs of no holes and you think will never sink, I'll just say one word, Titanic. 

We thought we had great product at launch, because our beta testers had very healthy behaviour playing multiple games per match-day and creating a small buzz through WOM. But in actual fact, when we formally opened up the doors and turned on a growth tap we saw holes appear. 

On-boarding flow had holes as we asked for people email and phone number (chose this due to other similar product types doing the same), the KYC verification page was a very tough cookie to crack in terms of placement and provider, the journey from registration to game played needing optimizing and finally how users could invite friends to challenge needed addressing. So we had our work cut out for us.

The hard thing was the air of investor pressure - to show signs of early growth and healthy product behavior - was around so I really tried to keep the growth tap on without a whole company effort to optimize the user journeys as quickly as possible. 

What would have helped us is if we segmented our company wide goals to focus on customer journey first (customer surveys/focus groups / analytics etc), prove healthy behaviour and market product fit, then focus on growth. 

It's a constant process and a company-wide objective to get your bucket fixed. Really dig deep into your analytics platform (Amplitude/Mixpanel/Metabase) to find where the holes are and fix them. To help flush out these holes you can run a few growth experiments, such as, controlled Facebook ad testing to pump a few 100-1,000 targeted people into the product to study behaviours. Doing this will:

  1. flush out holes in controlled experiment (understand onboarding flows, registration flows, app store conversion, finding the a-ha moment and overall retention)

  2. practice your paid advertising techniques

  3. help you hypothesize and test new user groups to target

All of the above will set great groundwork for the future growth strategy you will implement.

2. To become the master, you must master the basics

Master the basics you must

Master the basics you must

It goes without saying, if you want to become a master, you should master the basics. From a growth perspective, the basics aren't growth related. Think Karate Kid and the wax on wax off scene. He's not training to wax a car, he's just practicing his movements which will mimic the way he moves when whooping butts.

With this in mind, the basics of growth are all pillars that intersect with product, data and marketing, namely, behavioural pyschology, branding, storytelling, positioning, design, UX principles, programming, statistics and data analytics.  

Brian Balfour is a G and has great advice in shaping yourself like a T. It is frustratingly true, and I say this because I didn't know this when I started.

Source: Brian Balfour, Coelevate

Source: Brian Balfour, Coelevate

I, like many people out there, jumped into the channels before truly mastering the basics (similar to how I approached growth before optimsing the user journeys in the product). I started to "master" channels before mastering the driving forces (user behaviours and storytelling behind this). And in using this approach you can never truly master anything. 

So. since I have an honours degree in mathematics, I have a good understanding of statistics and data analysis, so personally, my focus has been on customer behaviours, storytelling, psychologies and design principles. It's been a very enriching experience learning these basics and building on them. I wish I had started learning and mastering these base layers before I cofounded Dribble because I'd be much more advanced in my experience than I am now. 

So, to my past self: "start now because no one ever said "I wish I mastered those skills later". Idiot."

3. Don't try to look for those Quick tricks, hacks or bullets

Hockey stick, not "hacky" stick

Hockey stick, not "hacky" stick

Everyone loves a success story. Especially the ones where a startup/founder is praised for using one trick or hack that resulted hyper growth and were shortly after unicornified (is that going to stick...?). They tried things like leveraging Craiglist for growth (Airbnb), integrating contacts and referrals in onboarding (Whatsapp), viral loops (pick one), Facebook Open Graph (one of the early adopters like IamPlyr), or added one feature that started the hockey stick.

I think an inherent reason why we love that concept so much is because you risk a limited amount (time) for maximum gains. Of course I fell victim to this, where I was hell bent on trying to figure out our one trick, or hack that would provide similar growth. 

But growth doesn't work like that. It's a consistent process of experimentation. You need to straddle two mindsets, creative and methodical. Creative in your process of choosing which channels to experiment first (using deductive reasoning and brainstorming) and methodical in how you execute it. An awesome growth process is the G.R.O.W.S process from Growth Tribe. Don't fall into a traditional trap of trying every channel once over a period of time until you find it, as that wastes vital time. 

You need to go through these creative and methodical motions, experiments, and theories to find the 1-2 channels that provide most growth, since it follows the power law. Meaning, only 1-2 channels will provide all of your growth. Could be WOM, SEO, paid ads, sales, content marketing etc. It follows this law because your business should find product-channel fit (more on this in follow up essays) where your product or business integrates intuitively into a specific channel, effectively built for the channel, rather than having the channel built for the product (impossible to do the latter). 

Way's in which I'd deduce channels to try: look at the competitive landscape, what are similar products doing to grow, what works well for them, what doesn't? What are new technologies or platforms that you can leverage for growth? Any blue ocean channels?

4. Keep one foot in the known and one in the unknown

If only learning would be that simple

If only learning would be that simple

I have come to understand that learning isn't linear. If you start on date A you are not on an even gradient of learning Y-amount every X-time-frame until you leave on date B. In truth, I see it as being more of a normal distribution, not over time, but rather between areas of known and unknowns, depicted below. 

The learning play ground. Inspired by Brian Balfour

The learning play ground. Inspired by Brian Balfour

To maximise learning, you need to make a conscience effort where you would like to be on the above graph.

When cofounding Dribble, I made sure to live in the unknown area, because "that's where I'll learn the most". In theory, this is true, because if it is unknown then it can only be known (very profound, I know). So I spent close to 100% of my time on tools, projects and areas I knew nothing about without even a slight understanding of a base layer. 

Alternatively, being at such a high stakes stage of the company it felt counter intuitive to work on things I knew very well already. If you know how to use a tool or understand a topic like the back of your hand then your learning is saturated. 

Clearly, being at either side of the bell shaped curve isn't ideal so one must actively work in a 50/50 capacity between known and unknowns. The closer you are to the 50/50 split the more you learn (depicted by the green area with the victorious icon). One reason being, if you're living in the 100% known, this easily leads to boredom, and if you're living in the 100% unknown, this leads to frustration. Another reason being, you can supplement the unknowns with key learnings from the knowns to help cognitive development

I hope that helps! It would have definitely helped my past self. More on my startup journey and reflections you can find my previous essays on how I launched my app and how I'd improve it.