Presented to 500Startups Accelerator Batch 17 about Distro Process

1. The 500 Growth Process
Chandini Ammineni
Distribution Partner
@ammineni
@ammineni #MHW #500STRONG

2. Should my startup focus on
“Growth”?
Depends on stage of startup
@ammineni #MHW #500STRONG

3. Pre P/M Fit Post P/M Fit
GOAL P/M fit
Scalable, repeatable,
predictable growth
METRIC
Engagement,
Retention
Growth Rate
DATA Qualitative + quantitative Quantitative + qualitative
GROWTH
STRATEGY
Hustle Build a Growth Machine
@ammineni #MHW #500STRONG

4. Pre P/M Fit Post P/M Fit
GOAL P/M fit
Scalable, repeatable,
predictable growth
METRIC
Engagement,
Retention
Growth Rate
DATA Qualitative + quantitative Quantitative + qualitative
GROWTH
STRATEGY
Hustle Build a Growth Machine
@ammineni #MHW #500STRONG

5. Product-Market Fit
A product that solves a problem “well enough”
for a “big enough” market
@ammineni #MHW #500STRONG

6. Early Stage - Pre-P/M Fit
Non-Scalable work
Macro-Iterations on:
• product features
• messaging
• target audience
@ammineni #MHW #500STRONG

7. Qualitative Data
NPS
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8. Quantitative Data
Retention
Img credit: Brian Balfour
@ammineni #MHW #500STRONG

9. Pre P/M Fit Post P/M Fit
GOAL P/M fit
Scalable, repeatable,
predictable growth
METRIC
Engagement,
Retention
Growth Rate
DATA Qualitative + quantitative Quantitative + qualitative
GROWTH
STRATEGY
Hustle Build a Growth Machine
@ammineni #MHW #500STRONG

10. Pre P/M Fit Post P/M Fit
GOAL P/M fit
Scalable, repeatable,
predictable growth
METRIC
Engagement,
Retention
Growth Rate
DATA Qualitative + quantitative Quantitative + qualitative
GROWTH
STRATEGY
Hustle Build a Growth Machine
@ammineni #MHW #500STRONG

11. Users
Customers
Revenue
Gross Margin
Profit…
Depends on $$ in bank
Growth Rate of What?
@ammineni #MHW #500STRONG

12. Pre P/M Fit Post P/M Fit
GOAL P/M fit
Scalable, repeatable,
predictable growth
METRIC
Engagement,
Retention
Growth Rate
DATA Qualitative + quantitative Quantitative + qualitative
GROWTH
STRATEGY
Hustle Build a Growth Machine
@ammineni #MHW #500STRONG

13. Growth Machine
Not Tactics, but Mindset & Process, ingrained in culture
@ammineni #MHW #500STRONG

14. Growth Machine - Goal
OMTM
Start with the end objective in mind
@ammineni #MHW #500STRONG

15. @ammineni #MHW #500STRONG

16. Growth Machine
Brainstorm Experiments
Define Goals
Pick Key Metrics
Hypotheses
Implement
Analyze
Rinse & Repeat
$30k Monthly Revenue in 3 months
# of Visitors; Visitor to Purchase conversion rate
Lack of Trust
Testimonials; Return guarantees
Git ‘er done
Testimonials increased revenue by 20%
Systemize Productize or systemize
@ammineni #MHW #500STRONG

17. Growth Mindset
• NO FAILURE
• Everything is a lesson learnt
• Hypotheses validated or invalidated
• Move Fast, Break Things, take Calculated Risks
• Momentum in testing required to outrun failures
• Faster Learnings = Faster Earnings
@ammineni #MHW #500STRONG

18. Focus here
Double down on what’s already working
Fixing leaks in your AARRR Funnel
@ammineni #MHW #500STRONG

19. Identify what already works
Product:
Core Value of product, Magic Moment - obvious post P/M fit
Acquisition:
Top of Funnel Segmentation (homework)
Most Valuable Customers
Customer Segmentation (homework)
If applicable, Segment Product Category
Other:
Customer Service, Brand Value - Qualitative feedback (homework)
@ammineni #MHW #500STRONG

20. Doubling Down - How?
Doubling down on Product
Reducing friction, referrals, push notifications…
Doubling down on Acquisition
Spend more money, broader reach, expanding keyword
list…
Doubling down on Most Valuable Customers
Evangelists, heavy spenders, better acquisition
targeting…
@ammineni #MHW #500STRONG

21. But, there’s a limit to Doubling
Down
Product
You can send only so many emails, push notifications,
and referrals before returns diminish
Acquisition
CPA starts to increase
@ammineni #MHW #500STRONG

22. Focus here
Double down on what’s already working
Fixing leaks in your AARRR Funnel
@ammineni #MHW #500STRONG

23. @ammineni #MHW #500STRONG

24. The Pirate Funnel
EcommerceACQUISITION
REFERRAL
REVENUE
RETENTION
ACTIVATION
100 add to cart
10 repeat
10 shares
30 purchases
1000 Visitors
@ammineni #MHW #500STRONG

25. The Pirate Funnel
ACQUISITION
REFERRAL
REVENUE
RETENTION
ACTIVATION
1000 Visitors
500 Accnts created
100 Users
50 Advocates
10 Customers
SaaS
10/1000 = 1%
conversion rate
@ammineni #MHW #500STRONG

26. The Pirate Funnel
ACQUISITION
REFERRAL
REVENUE
RETENTION
ACTIVATION
1000 Visitors
cvr = 50%
cvr = 20%
cvr = 10%
@ammineni #MHW #500STRONG

27. Funnel Optimization
Fixing Leaks = Funnel Optimization
• Asking for signup/login after/during product value
delivery
• Exit pop-up survey
• Login with social credentials
• Ad landing pages
• Personalized user experience (geo, return user
experience..)
• more…
@ammineni #MHW #500STRONG

28. The Pirate Funnel
ACQUISITION
REFERRAL
REVENUE
RETENTION
ACTIVATION
1000 Visitors
cvr = 50%
cvr = 20%
cvr = 10%
Revenue = Visitors x activation cvr x retention cvr x revenue
cvr x AOV
$2500 = 1000 x 0.5 x 0.2 x 0.1 x $250
@ammineni #MHW #500STRONG

29. Bottom of funnel = Higher impact
@ammineni #MHW #500STRONG

30. Thank You
@ammineni #500STRONG