Growth Frameworks and Functions

First Round has a great article up about Indispensible Growth Frameworks based on the lessons learned from Andy Johns. The idea is that once a startup reaches a certain size, they should have a dedicated person or team focused on growth (e.g. a VP of Growth). Growth, in this example, means the flow of customers into and out of a product. Basically, anything related to getting users in the product.

Here are a few notes from the article:

  • Basic Growth Equation
    • Top of Funnel (traffic, conversion rates)
      x
      Magic Moment (create emotional response)
      x
      Core Product Value
      =
      Sustainable Growth
  • Amazon’s Growth =
    • Vertical Expansion
      x
      Product Inventory Per Vertical
      x
      Traffic Per Product Page
      x
      Conversion to Purchase
      x
      Average Purchase Value
      x
      Repeat Purchase Behavior
  • Develop rigorous experimentation methods.
  • You can’t sustainably grow something that sucks.
  • You don’t need or want a growth hacker to lead.
  • Your growth lead needs to be a product person.

The article is focused on B2C internet entrepreneurs but the general idea remains: have a dedicated person or team focused on acquiring leads or users and continually test and optimize the funnel.

What else? What are some other thoughts on growth frameworks and growth functions in a startup?

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