“Business Ignition Series”, Volume 5 Using emotion to scale your business rapidly
Remember a very important thing, that we don’t make decisions based on logical reasonings. We make decisions on emotive reasonings and then use logic to justify it to ourselves and others.
In other words, then, lace all of your marketing messages with emotion. Stand for something, have a belief, have a set of values. People want something to believe in and if they don’t have anything, they will buy into what you believe if it’s aligned with what they know to be true.
This is a point which is so rarely talked about, but it will give so much more power to all of your marketing efforts. If you can ingrain this into your product / service, even better!!
The fact that the messaging and marketing across many industries has less variety than a North Korean barber, your messaging which is so brilliantly matched to solving customers’ problems and dripping with emotion. They have no chance.
Remember a very important framework when it comes to all of your marketing:
- Find out who your customer is
- Discover where they are
- Learn how to talk to them
If you consistently do these 3 things and are accountable to metrics and are willing to change based off of what those metrics say, the only outcome is victory on a long enough timeline. Then as you get to that point, you get a set of much better problems, like which £50 note to light your cigar with today.
You will deal with point 1 in your customer development work outlined at the start of this blog series.
Point 2 will become clear to you from your marketing channel tests.
Point 3 can be satisfied by split testing your marketing copy high up in the funnel.
Test high up in the marketing funnel first
Even for the most savvy, data driven entrepreneur, it can be very time consuming and expensive to be split testing things lower down the funnel. Leaving you eating moss off rocks to survive. For example, headlines on a web page or the video placed there. In order to get to statistical significance (which usually requires hundreds, if not thousands of results), try higher up in the sales funnel.
For example, try changing your adverts and see the impact this has on Click Through Rates (CTR.) After all, you are trying to find out what drives your potential customer to take action and therefore derive what resonates with them. Doing this allows you to find this out early on, allows you to quickly tweak how you are communicating with customers and then puts you in a really strong position to be able to test further down the sales funnel and be effective in doing so, without burning through all your marketing capital.
The great thing about all of this is it’s not like you need a PhD or be able to conduct a light opera. Business is coachable. Be adaptive, be open, be humble. You can save yourself 6 months with a half an hour chat with the right person. We want to be that person. I certainly had that person for me, and he changed my life in ways I could never imagine and I therefore have a debt I could never possibly repay. As a result, I have a burning compulsion to pay it forward to everyone I can, which is one of the primary reasons for putting this blog and company together.
Set yourself up for success with growth marketing
Now you have proven your product is valued by your competition, and understood what compels them most to take action, what resonates with them and how to communicate them, now you can take those gems of insights and give them an appropriate engine to exponentially accelerate your company’s growth.
When I started building my first business, I had to consider cutting off his arm as a cheap alternative to turkey at Christmas. So, I learned how to do a lot with very little. I had no choice but to become really focused and effective because I only had £100 left of my overdraft at that point, which is brown trousers time whichever way you look at it. At the same time though, I was very time poor and such is the drag factor of my mind, I could only do a limited number of things well. I didn’t have any design skills. Most of my performances in art class involved me getting confused and eating the paint. The idea of building a website was scarier than the phrase “easy home assembly.” What I did have was a hustle to go out and speak to customers and a scientific and analytical mind that would allow me to create systems that I could test, improve and then leave them alone while they grow exponentially without any further input. I knew I needed to build a growth engine.
A growth engine is a set of activities that you can systematically undertake to drive growth. This could be as simple as running an AdWords campaign or blogging and sharing your content. Typically though, these are more complex constructs made up of lots of moving parts. Lots of parts usually means that the engine can be iterated on and optimised well by tackling each part at a time. These parts combine to create your growth engine. They wouldn’t be engines unless you could step on the throttle to rev up the engine. So, ensure that when you model out your growth engine you know the key levers that you can use to accelerate the engine.
An example could be a store that drives some traffic through an AdWords campaign, collects email addresses by a popup on first visit and then retargets visitors who proceed to view a product using an ad network. They then email the users they’ve collected and ask them to refer their friends. All of these parts combine to create this business’ growth engine. In this case, to accelerate the growth engine you would drive more traffic from the AdWords campaign.
Once you have a growth engine, you should start to think about loops. Here is an example of a very simple loop describing a referral system. For every user acquired they refer 0.4 new users. So that:
Users acquired = 1000 New users referred = (1000 * 0.4) = 400
Users acquired = 400 New users referred = (400 * 0.4) = 160
Users acquired = 160 New users referred = (160 * 0.4) = 64
Users acquired = 64 New users referred = (64 * 0.4) = 25.6
This will continue to infinity!
The ratio between the cycles, in the example above 0.4, is what we call the cycle ratio. We can use the cycle ratio to derive a metric called a growth multiplier using the formula below (it saves us extrapolating all the cycles like the above):
Growth multiplier = 1 / (1 – cycle ratio)
In the example above, the growth multiplier would be:
Growth multiplier = 1 / (1 – 0.4) = 1.7x
This means that for every cohort of users that you introduce to your product (e.g. 1000), you will actually receive 1.7x users (e.g. 1700). 1000 of these were the core cohort and 700 were referred by the cohort.
Be aware of how the growth multiplier changes with higher cycle ratios. If you had a cycle ratio of 0.8 (i.e. a 100% improvement), your growth multiplier would actually be 5 (a 194% increase) as the relationship is not-linear.
Loops underpin the holy-grail of growth marketing, exponential growth. If you have a growth multiplier greater than 2x, your initial cohort of users will generate more than themselves in return and the loop will grow larger with every cycle. This is how we define non-linear, exponential growth.
There are three common types of loops to be aware of: viral, paid and usergenerated content. You should see whether you can incorporate one of these into your product.
The Viral Loop
- Users arrives at page
- User shares something or invites people
- Other users click on shared item or the invite
- The other users then share something or invite people
The Paid Loop
- Pay for users to visit site
- Users transact on site
- Generated cash used to pay for more users
- More users transact
The UGC Loop
- User visits site
- User creates content
- Content indexed by a search engine
- More users visit site from search
Caveat: loops are hypothetical, and you’ll need to ensure you have a product that people engage with and love to really get loops working within your feature set, this is especially true of the viral loop and the UGC loop.
Believe me, this approach when done correctly will bring a bigger change in your life than when the Vikings realised the horns shouldn’t be on the inside of their helmets.
You should aim to develop a genuine love for metrics and objective feedback, even if it’s not what you wanted to hear. This will be the superpower that will come to your aid time and again in your business life.
Do this and with every discovery and subsequent iteration, your growth loops will ratchet up in velocity, meaning that the bucket that was now full of holes are now firmly filled, with water now overflowing as capital into your business.
With that, coupled with your altruism and drive, then you can have the impact you want to have on the world. With all the drive and tenacity in the world, and I had most of it, with no resources or any network to speak of, there was only limited positive impact I could have with my knowledge and skills. Now I am developing both, my impact on the world is growing at an exponential rate, a growth engine.
I believe that you need to take what you’re best at and what you’re most passionate about and use that intersection in service of other people, then scale that as big as you can. Do that and there will be no doors in life that are locked to you. This is the life and impact we want for everyone we help and speak to.
Our team becomes your team.
“Committed to your success.”
Dr Jack Darby