WhoBuilt

How to Get Users and Grow

Sep 12, 2018· 1 h 4 min· 414K views·Watch on YouTube

Speaker

Gustaf Alströmer, a Y Combinator partner and former early growth team member at Airbnb, explains how startups can measure product-market fit and build growth through product changes, channels, and experimentation at Y Combinator’s Startup School.

Growth starts after product-market fit

Alströmer argues that growth is central to startups, but pushing it too early can waste effort when a product has not yet found product-market fit. He suggests identifying the metric that represents customer value and measuring repeat use at the product’s natural frequency. For example, Airbnb bookings may be annual, while Facebook use may be daily.

Choose growth work and channels deliberately

Alströmer distinguishes product growth, which improves the product funnel, from performance marketing and brand marketing. He recommends focusing on translation, authentication, onboarding, and purchase conversion, then choosing channels based on how customers discover and use the product. Examples include SEO for infrequent needs such as buying a house, referrals when users already share, and sales when a target customer list can be made.

Measure and improve each funnel step

Alströmer describes Airbnb referrals as engineered word of mouth, with $20 in travel credit for the referrer and $40 for the new user. The team measured the referral funnel from program exposure through invites, sign-ups, and first bookings, finding that few active users initially saw the program. Small design choices also mattered: the invite email used a clear benefit, a deadline, and the referrer’s identity as social proof.

Use experiments to make product decisions

Alströmer says changes in a metric after launch do not prove that a feature caused them; seasonality and other events can affect results. A/B tests compare versions at the same time to estimate the difference. At Airbnb, a redesigned share sheet increased shares by 40%, and changing an invitation button produced a 14% increase in sign-ups.

Takeaways

  • Define the customer value metric and measure repeat use at its natural frequency.
  • Talk directly with users when a small user base makes retention data hard to interpret.
  • Choose growth channels based on customer behavior, product value, and the economics of acquisition.
  • Track the full funnel to find where potential users drop off.
  • Use A/B tests when product decisions are uncertain and you have enough traffic to detect a meaningful change.

Mentioned in this talk

Search inside this talk

What was claimed 8

  • previously at
    growth team for almost five years
    “I worked on the growth team for almost five years”
    1:00inGrowth for StartupsYouTube
    Verified2 sources· Talk
  • role at
    “my esteemed partner at Y Combinator”
    YouTube
    Unverified1 source· Talk
  • works at
    helped grow the growth team from about three people to about 220
    “We were three people in the beginning ... we then grew to 220 people”
    YouTube
    Unverified1 source· Talk
  • feature
    Meta: Platform that automatically translated Facebook into hundreds of languages
    “implemented this new platform that automatically translated Facebook into hundreds of languages”
    YouTube
    Unverified1 source· Talk
  • metric
    Meta: About 2.1 or 2.2 billion users
    “Facebook today is a 2.1 or 2.2 billion-user platform”
    YouTube
    Unverified1 source· Talk
  • feature
    Airbnb: Referral program offered referrers $20 and new users $40 in travel credit
    “I would make $20 in travel credit ... and the user would get $40 in travel credit”
    YouTube
    Unverified1 source· Talk
  • feature
    Airbnb: New share sheet increased shares by 40%
    “The new share sheet led to 40% more shares”
    YouTube
    Unverified1 source· Talk
  • metric
    Airbnb: Referral program signed up hundreds of thousands of users almost every day
    “the referral program, which signs up hundreds of thousands of users almost every day”
    YouTube
    Unverified1 source· Talk

Related talks