Growth Hacking through Peer-to-Peer Advertising
As the focus on gaining traction continues in the second third of our program, Managing Director Chuck Stormon led another workshop on growth hacking, this time with a focus on how to encourage your users to advertise your product to their friends. As a refresher, growth hacking is the art of rapidly finding new users and, like any art, requires creativity, effort, and a little luck.
The first way to expand your user base is by directly working with the people who already use your product. Who better to spread the word about your product than the people who already love it? Engage your most dedicated users on a personal level: Invite them to a Google hangout, take them out for coffee or tea, or perhaps host a happy hour so all your innovator-promoters can discuss your product, give you valuable feedback, and be encouraged to spread the word to their friends. Since you have customers, you should demonstrate customer appreciation.
Another way to acquire users is to make use of crowdfunding sites like Kickstarter or IndieGoGo. This is an excellent way to gain visibility, and can bring money from unlikely places. Consider the example of GraFighters. Eric Cleckner and Dave Chenell, of the Syracuse Student Sandbox, developed a website where people could sketch a cartoon character and then match it in virtual battles against other fighting doodles. While they initially failed to reach their crowdfunding goal, they did catch the attention of a venture capital firm that invested the amount they needed in their idea. Even though their crowdfunding campaign failed, it grabbed the attention of a different source of funding. The lesson here? The harder you work, the luckier you get.
Anyone with an email account has been a target of an email campaign at one point or another. This type of advertising consists of a mass email sent to hundreds or thousands of potential customers. Chuck shared a campaign he ran for his company RushTera. A service called Zoho Campaigns allowed RushTera to to email 643 film festival attendees, of which 256 opened, sixteen clicked, and one accepted. Even though this was only one out of 643, this email chain accomplished exactly what it was intended to: acquire another customer.
Email campaigns and crowdfunding promotion can be improved by fostering an air of exclusivity for your product. By awarding a t-shirt or other swag to anyone who refers a certain amount of friends, you create an exciting challenge that attracts people with a competitive spirit. You can even offer a discount to both the customer who refers the product, and the person whom they referred it to.
An excellent example of a company which makes use of exclusivity in promotions is Fandalism, a social media site for musicians. The way it attracts users is very unique: In order to sign up, you need to post to a musician friend’s Facebook page complimenting their skills. Thus, even before someone signs up they are already spreading the product among their friends, and these requirements to join help add to an air of exclusivity around the product. This can be a risky approach, but certainly creates a viral loop.
No Silver Bullet
There is no one best way to get users, because every product and service appeals to a different set of customers. While some users will want to share your product with all of their friends, many will never refer anyone at all. Since having customers is essential to turning a great idea into an awesome business, don’t be afraid to try as many methods as you need to attract your next wave of users.
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