Hacking Virality: A design-centric approach to building sustainable viral growth | Sangeet Paul Choudary | Skillshare

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Hacking Virality: A design-centric approach to building sustainable viral growth

teacher avatar Sangeet Paul Choudary, Founder at Platform Thinking

Watch this class and thousands more

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Taught by industry leaders & working professionals
Topics include illustration, design, photography, and more

Watch this class and thousands more

Get unlimited access to every class
Taught by industry leaders & working professionals
Topics include illustration, design, photography, and more

Lessons in This Class

5 Lessons (55m)
    • 1. The Hockey Stick: Bumps and Engines

    • 2. Bad Virality: Why most startups fail at virality

    • 3. How Products Spread among Users

    • 4. Five questions for growth

    • 5. Three Case Studies in Growth

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About This Class

Internet startups like Facebook, Twitter, YouTube, PayPal, LinkedIn etc. have demonstrated unprecedented growth, building user bases of hundreds of millions in a few years. How do these startups create such hyper-growth?

Traditional marketing methods require paid user acquisition and repeated marketing activities. Instead, hyper-growth startups grow by building a self-propelling engine for viral growth that enables the business to acquire millions of users without the need for commensurate investment.

This course explains the mechanism for creating organic virality in your product. It identifies patterns that differentiate successful businesses from unsuccessful ones and lays out an actionable framework to apply these user acquisition strategies for any internet startup.

The course lays out the Growth Canvas: a tool to plan out viral growth for your product.


It also helps answer the key questions for planning virality:  

WHY will users of your product spread the word about it?

HOW can you enable users to distribute product functionality and value, outside the product?

WHERE will users spread the word about the product?

WHY will recipients of the above spread take action and start using the product?

Additionally, it lays out the managerial priorities in managing viral growth for the product. These priorities are explained as a mix of product and marketing decisions. It also explains how to choose the right metrics to enable growth.

Finally, it brings all the concepts together onto a one page canvas that students can use to apply viral growth at their respective startups. 20+ case studies are used through the course to explain the various concepts.

Meet Your Teacher

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Sangeet Paul Choudary

Founder at Platform Thinking


Sangeet is an entrepreneur and widely published technology analyst and researches internet business models, in collaboration with scientists at the MIT Centre for Digital Business. As a former incubator and investor, he has had extensive experience leading early stage ventures from idea stage to a functioning business. His work has been featured on the Harvard Business Review, TechCrunch, All Things Digital, GigaOm, TheNextWeb, Forbes, Inc and other media.

He is a contributing author to the book "Managing Startups" (OReilly Media), which also features Steve Blank, Paul Graham, Eric Ries and Chris Dixon, among others. His blog Platform Thinking (http://platformed.info) was ranked among the Top Startup Blogs by the Harvard Business School Centre for Entrepreneurship Chair Prof. Tom ... See full profile

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1. The Hockey Stick: Bumps and Engines: - welcome to the course, - the growth canvas. - We're actually going to be talking about how to create organic growth because there's not - off stuff out there about how to create Bill. - How do how do you use various different channels for growth? - But what they specifically going to be focusing on this course is how do you create a - product that organically is meant for growth? - Specifically three things that I want to focus on in the scores. - How do you design a product for hypergrowth now? - The fundamental thing that differentiates Internet startups from any other business out - there is the fact that there's potential for hypergrowth. - You can actually have tens of millions of users in a few months to a few years, - which is just unheard off in any other form of business. - So how do you build a product that can achieve that kind of growth without having to invest - commensurate amount in marketing? - How do you achieve high growth with high engagement Now, - this is a common problem that we see very often. - There's a lot off money that he spent on good, - and, - uh, - in some cases you can use, - um, - interesting hacks and get a lot off quick, - Good. - But then you may not have good engagement on the product. - So how do you decide, - How do you achieve I go that high engagement? - And finally, - how do you build a product that markets itself? - Because that's what you really want, - right? - You don't want to spend tons of money on marketing. - You don't want to have to scale a huge marketing team. - What you want is a product that every time that the product is used, - it's a new opportunity for the product to market itself further so product that grows with - usage. - The more that's used, - the more the product goes and usage and the more the broad get exposed to other you this, - well, - that's what we're going to really be looking at. - So let's big step back before we get to the group. - But let's tryto figure that out. - If you the startup, - which business are you building? - There are two kinds of businesses out there. - You could either be building a bullet card or you could be building a rocket to the moon, - and it's there's no one of that. - There's no one business that's better than the other. - It's justice that a bullet card at the end of the day is something that goes slowly. - Andi keeps keeps growing. - It just keeps moving it. - But it never achieves hype. - A group that never achieved an inflection point after this to do just takes off. - The rocket to the moon actually starts growing slowly, - as you would see with rocket propulsion as well. - But suddenly that there's this huge blast and the good just skyrockets after that. - So if you were to think of these two businesses, - this is what it would look like. - And the red one obviously being the bullet card, - the blue one being the rocket to the moon. - Now, - if we're in the business of building Internet start ups, - we don't want to really end up being a blocker, - because the whole promise of the Internet is the potential to access a worldwide user base - . - And when you have these millions and hundreds of millions of users out there, - potentially, - you need to build a rocket to actually get get all of them on board. - So what's special about building a locket, - a product that has the kind of grass that that we see here something that goes slowly at - first. - That's all, - Perhaps, - too. - But suddenly there's this inflection point, - after which the growth skyrockets very often. - In the tech industry, - we have this fallacy that building a product is everything that you just need to build it - and they will come. - But as we've seen all too often, - that's not the case. - I mean, - on the Internet, - there's just too many products out there. - Just building a good product does not gather be anything in terms for adoption. - So how do you build a planet that gets exposed to you this repeatedly? - This is what we usually think of when we think of the artistic. - Now, - in the case of Internet started both, - we often think off the hockey stick girls. - A girl with the good start slowly and then suddenly takes off. - So what? - We need to figure out this the flat a part of the hockey stick that we see over here. - It's fairly easy to achieve. - How do you go from here to actually hear that the steep a part of the hockey stick? - How do you make make that jump? - Because they feel a bullock cart and you might just always be going along this part, - But if you can move from here to here, - that's where the real fun off building and Internet product comes in. - So they're the two different kinds of good strategies, - everything off it. - Didn't those dudes started use, - which will help you grow from zero to this point. - And then there certain kinds of those strategies which will help you move from this X, - whatever that is 200 X and pretty much the same time that it took you to go from zero to X - . - And I think of these two different kinds of strategies as bumps and engines. - Now, - if you think off an analogy over here, - I think of how car moves. - They're two different ways to move a car you can have. - You have the stationary car you can. - You can start another car and band the stationary car from behind, - and with this bump, - the car moves a bit. - It does move, - but it doesn't keep going on. - After that. - It moves a bit and stops. - If you really want the car to keep moving in a sustainable manner, - you need to fit an engine into the card, - and it's the same thing that applies to Internet products as well. - You can apply external marketing. - You can have this huge marketing push and certainly a lot off you this coming. - But the in flu off you this the traffic stops as soon as the marketing push stops. - And that's that's a bump because you just put this in, - flew off in flow of traffic suddenly, - and the moment you you stop investing in marketing or the moment to stop investing any kind - of effort, - the interest of traffic stops and this is what happens when you get covered in technology. - You have this huge spike that suddenly comes up, - and after that you just don't have the future. - Is the turning anymore? - You all, - Even if even if you did acquire some you. - This, - despite is not sustainable. - It's just a one or two. - Despite that happens, - if you launch it and even the same thing that happens, - you see a spike and then you don't have sustainable way of getting new users. - If you invest in advertising, - it's the same thing as long as to keep investing money into advertising. - You keep getting users into the product. - The moment you stop investing money, - you the stop coming to the product. - So these are all bumps strategies. - See, - they're not useless by any means. - They're extremely important for getting a product started, - but off their own, - they can never lead to the hockey stick go that we want the deal sustainable growth that we - want over here. - To get to that, - we need to build an engine. - We need to build some kind of goat that can be repeated without ongoing investment, - off time effort on money. - Because if you think of all of these things, - if you want more than more pressingly this to happen, - you have to keep investing in that you have to keep investing your time and effort. - More advertising means investment off more money. - The moment you stop investing, - the growth stops villas. - What you want is something which you build once, - and it just keeps contributing to the growth without stopping it all. - And that's when you really have an engine. - So if you think off what we want to achieve over here, - if we want to go from that Leah good at the bottom to an exponential skyrocketing good, - we have to move from just relying on bumps to go going to an engine. - Very often start ups thing that the end goal off their marketing or the U The acquisition - is just getting covered on TechCrunch. - You're getting some kind of featured out there, - but do they all bumps? - They're good, - but they will never get you to the exponential go that you really want to see for that - glued engine needs to be created. - And that's exactly what discourses about how we go about creating such a growth engine. - The secret to scale is to figure out a repeatable model of growth on. - The only way to have a repeatable model of good is to make your users apart off that model - , - because if you think of it, - the scaling variable that off off of growing startup is the number, - the few this that on that using the product. - So what we really want to have is as more users use the product, - the growth rate at which the product acquires new users also grows, - so the number of new users coming in per day at 100. - You, - this and the number of you this coming in pretty a 10,000 you. - This should be extremely different. - If it's a difference to seem, - you're probably the language bumps. - But if you create an engine which the life on users to create good for you, - you're actually ensuring that as more than more you. - This common board, - your go to the also increases. - So we need to the think growth as a set off actions that you this before. - And that's what creating an engine is all about. - That's that's what what I think of when I call it user generated good. - It's the beatable. - It's scalable and sustainable because as long as you have new you this coming in and using - the product in a way, - it's as long as you have even existing uses repeatedly using the product, - the product should keep getting exposed to more than more. - You this. - If you think of Instagram, - the more people use the product, - the more other users come to know about it. - Because all of these people shared the pictures from Instagram onto Facebook, - so that's a good engine. - That's an example of a good strategy that has the user at the cool off it and more usage - and more users implies more good. - And that's exactly the kind of strategy with where you want to be because you're glued is - entirely dependent product usage. - Your group is closely tied to engagement, - and your growth is repeatable. - It's scalable and sustainable. - Now, - the moment we think off user generated Luthor you this at the center, - the good. - We end up thinking off vitality, - and that's the moment. - Rethink off vitality. - This is what we think off. - We think off all those Facebook spam invitations that we've been getting around all the - time. - Not exactly why you go to Facebook, - that you don't go there toe legal invitations about all the crappy games that other people - playing, - all the absent of the people are using. - You go there to connect with friends, - and so we have this negative impression off what vitality is about. - But that's what this course is about. - How do you create vitality? - How do you create growth within the product? - That is a great experience for users in general, - and that enables you took those sustainably because if there's one thing we've learned from - all this Facebook APS, - it is that this group is not sustainable, - you get a lot of these people and get a lot of the off you this coming into your lap and - pretty soon, - the abandoned your that. - So to be collect what we kind of learned within this first lesson, - you need to figure out whether you want to be a bullet cut or the locket, - and there's nothing wrong with being a bullet cut. - But if you want to be a Bullock cart, - you probably already know how to get users in various different ways. - But if you want to build a locket, - you really need an engine of growth. - You cannot just rely on bumps, - and this whole course is designed around creating an engine where you do not have to invest - any money. - Any kind of effort toe keeps killing your good the good skills. - Asked more than more. - You excuse your product, - and that's what you originated Goods is all about. - So that's what we'll be governing in the future lessons. - And for now, - this is what I have to see at the end of this lesson. - Thank you for listening 2. Bad Virality: Why most startups fail at virality: Welcome back to the class Declude canvas in the last less. We learned that if you want growth to scale with adoption, if you want, go to keep on scaling. The more the product is used, the more it goes. You need to have users at the center of a good strategy, and that's what we think of anything of morality. But as we saw at the end of the last video, we realized that vitality is something that we've gotten pretty frustrated with because our Facebook things are filled with all these game notifications, and that's what we thought of vitality. So we clearly believe that there's something wrong with the banalities going on today. What, exactly that that all of these Facebook APS Facebook games seem to be getting along with morality. Very often, we think of Al lt as something where you just get a user to send it in white to his network and get them onto the product. Now the problem with in whites it's fairly simple. The problem with invites is that there's just too many of them coming to us and asked with any other thing. The moment we have too many is relevant machine automated messages coming to us. We start classifying them a span we don't respond to it. The whole effectiveness off those in whites goes down. So the reason we're getting vitality so long today is because we're feeling a lot like this . We just feeding a lot off. We just getting a lot off invites, which are not relevant to us at all. And there's typically what happens when you're using Facebook and you have your newsfeed just littered and cluttered within whites. Why is Wyatt and White such a long way off using your you this for good? Because that's the default way we usually think of when we think of building growth. Where you this bringing, bringing other You this We automatically think, Hey, that's what invites at all about. If you want to use this to get another you this you get review. This to send invites to to the to the network. Now the problem with that is that we've often thought off this whole invite loop as a hack that can be applied across products. What we often think off when, with anything off go tax would be. What we often do is we always simplify the whole process of growth. We start trying to create a packaged way that can be taken and applied across products. And that's the problem that we're seeing with invite loops, thes days. What what happens is we figure out okay, this is the normal structure. Often invite loop I use. It comes in a sense, out it and white. Then why it goes on to an external network like Facebook or perhaps the main. A user takes an action based on that, comes back into the product and then starts this loop all over again. That's what we usually think often invite loop. And that's what we think as yet another good general, yet another marketing channel. So when we do that, when we when we approach vitality with that mindset, we think off glute as something that is divorced from the product, we think, Hey, you need to build a product first. You need to slap this invite loop or top off it, and suddenly you're going to be the king of the world. And that's typically how we've always thought of product and marketing is two different divisions as two different priorities for the start up. But the the whole point about vitality is that vitality at the end of the day is an action that the user needs to take on the product. It's an action. It's a user initiated action and everything that the user does on the product, essentially the part of off the product experience for him. So the moment we see that vitality is an action by the user, it becomes a part of the project expedience. And we're really careful about building a product experience, designing a product experience that delivers value to the user. And yet, in spite of all that, we ignore the fact that vitality is also part of the project expedience, and we never go down to designing it carefully. So the key thing that I want to focus on is that rather, Groot is not just about creating a loop and optimizing that look repeatedly. It's about designing growth into the product, and that's what we're going to be talking about. The rest of this course. How do you design a product that the very usage of the product needs to the growth of the product? It doesn't need an external invite group it doesn't need the user to do anything extra except use the product the way it is meant to be used. And the more the user uses the product, the more the product will go. So this is where we've got him wrong with good over there just to quickly the gap we have caught off vitality off growth in general s an afterthought. Product design. We haven't thought of it as a part of product design. And we thought off good as a one size fits whole hack like if you're building a game or the few building and aecom aside or you're building a content platform, you pretty much using the same invite group across these. And you're just focusing on optimizing that Luke, improving the vital coefficient. The problem is that first of all, you cannot have this loop as a one size fits whole hat across all of these products. It has to be contextual to the product. Secondly, if you think of it as just this loop that is added to each product and then you go about optimizing it, you actually optimizing an experience that is really bad. And when you optimize and experience that is the anybody actually going to make it worse. So the more you try to increase the viral coefficient diverse, it starts becoming for the user because the whole experience to start with were extremely unfriendly to the user. So the key message that I want to leave here is that if you want to think off users bringing in other users, you have to realize that group is suddenly a part of the product experience. As with every other part of the product experience it needs to be designed, it needs to be designed in a way that uses enjoy it. Users want to do it so it cannot just be a set of prepackaged tax layer on layer on top of the product. It has to be the very part of the product, so that uses who come there just used the product. They don't go into some totally irrelevant invite rules. They just focus on using the product and in the course of using the product, the violent loop, it actually part off the workflow of the product itself, and it's easier said than done. And that's the whole leaving. This course exists because this course is not about creating invite loops. It's about creating a product where you don't have to clear the slope. It all the whole vital aspect is very much a part off the workflow off the usage of the product itself. So with that, we come to the end of lesson one. Thanks for listening and we'll join you listen to 3. How Products Spread among Users: - welcome back to get another class of the growth canvas in this class, - we're going to be discussing how thought it spread because ultimately we want to create a - product that spreads by itself. - That's really where we achieved the beatable, - scalable and sustainable goat. - So to start with, - looking at how products spread, - let's take the analogy of how did either spread Because if you think of the world viral - growth, - the very root off the word vital life in the way vital divvy the spread. - And so it helps us to actually look at this analogy and understand how diseases themselves - spread from person to person in the same way that by the product adoption happens from user - to user. - If you think of how dizzy the spread there, - actually three competence that are involved, - usually you need all of these see components for the disease to spread. - You need somebody who already has the disease, - Disney's or do to do without the German. - Some fashion. - You need droplets that come out and I'm sorry for the very graphic illustration, - but you need these droplets to carry these germs out, - and then you need a where the droplets remain suspended before somebody else leased them in - . - So they're actually these three elements over here, - this sniffing guy and they drop. - It's getting the germs. - And then there's the air, - which access the substrate that carries these germs forward on the fourth person. - Obviously, - the fourth part off this whole process, - obviously, - is the recipient who kind of gets the germ and then false sick himself. - So you need all of these four toe happen simultaneously to happen together and turned them - for the disease to spread. - And you need somebody to sneak in the first place. - You need an out there. - You can't really expect things to spread when they're spreading in vacuum when you're - sleeping and vacuum. - Obviously, - we'll never know because we've never tried that. - But the main point being that you need all of these four elements simultaneously, - and the reason this analogy is important is because product spread in much the same way you - have a user who's using the product, - so that's like the counterpart of the sneezing guy. - The user already uses the product. - The user sent out something from the product, - which for now we'll call seeds and we look at that So the rest of the course, - what exactly the seats are so the you the sends out a seed from the product. - Ongoing external network. - So if you think off, - Instagram a user youth instagram to send out a photo from Instagram onto Facebook and a - another, - the recipient whose on Facebook looks at the photo and takes an action that brings him back - to Instagram. - So that is how product spread a user sends out the seed onto an external network. - And on the external network, - the recipient takes action to make it more visual. - The user is on your product, - as we see on screen right now, - and the users bridge the word about your product on an external network. - If you think off Instagram and Facebook, - do you? - There's not necessarily sending in white, - but he's sending a part of the product out there, - and that that part is what infects the recipient to become a user off the product. - And that's that's where the analogy with you know that with wider spread kind of comes in - because invitations are more forced with us. - This is actually a germ off the product, - going out and infecting a recipient on the external network and making him come back to the - product and become a user himself. - And the Instagram example. - Choose that really well. - So these four fact is need to happen together. - Four breasts to spread. - So the repeatable pattern that we see in goat is that the user since the seed onto an - external network, - you need these three things. - And finally, - on the external network, - you need a recipient to take action. - So the rest off this cities the rest off this whole class. - The other lessons that we that we do, - we'll all be focused on. - How do you go about repeating this pattern off goat? - And how do you ensure that you this keep bringing in other users on? - But whole thing works on its own, - just awaiting the spread on their own. - So that's what we're going to be discussing in the class is ahead. - Thank you for listening. 4. Five questions for growth: welcome to the section off the class on the good canvas. This is actually probably the most pivotal class that we'll be looking at during the city's on. Uh, this is where we'll be talking about how the various factors that contribute to a wider spread come together on the group canvas and how this can be used as a planning tool to decide how to grow your product, what kind of factors you need to look at, whether you're planning for all of the competent, skeptically or not. So this is the class where I'm going to be introducing the good canvas to you. But before we get to that, let's talk about the five ingredients that needed for organic good. And we going to be discussing these ingredients because very often we try to think of growth as something s, ah, a decision that is more than about a marketing channel. It's more about something that is divorced from the product. But as we go to the discussion on the growth, canvas will realize that good for the Internet products, especially organic growth, is very much a part of how the product is structured. How the workflow segregated So we're going to look at what those five ingredients are, which for the vigil design elements, one of which is more than optimization. But how do these five things become part off your product backlog? Become part off what you create in the product and how how do they then translate into priorities for the product and the marketing team? That's what we're going to be discussing, and we'll be looking at the good canvas at the tool that helps us visualize all of these things together to see if you balancing all the ingredients that are required for boats to happen to the that the five ingredients did it. These five questions that we need to answer to decide whether growth is working the way we want to work that way, we want it to work whether the product is created to grow organically. Before we get into these questions, I want to clarify that very often we think off vitality as another marketing tactic. But if you think off vital vital goat, if you think of that whole action and that interaction that happens and the end of the day vitality is the social interaction, it's one user doing something that exposes the producto another recipient somewhere outside and brings him over to the product. So it's an interaction between two people. It's it's it's a social interaction. And just as with all social interactions, it's extremely important to understand why these to you, these two people would be participated. This interaction, what are the mechanics for this interaction to happen and how you can control and manage this interaction? So with that in mind, we have these two parties, the centre than the recipient sender that somebody who's using your product So the first question is by Will this user on your product want to spread the word about your product to The first question is about the sender. Why will the center take that action? The second question that we're looking at is what mechanism is the sender going to use to spread the word? What is water that that descendant sense out off your product that can be seen, or the suit by somebody externally, and that ATS as a messenger for for your product? The third question is very is the recipient because the recipient needs to be at some place with the word from the product goes out and can be seen. So the recipient usually is on an external network. And this question is essentially they're deciding what that external networkers before question is. Once the recipient sees this thing that the sender sent out viable the recipient take action because you need the recipient to take action. That's when the whole social interaction happens and the recipient decides, Okay, I want to go and start using this product. So what is it about this message that makes the recipient take action? And finally, the last Probably the question that helps us manage this on an ongoing basis is how will you manage? This whole place is so if you think of it, enter and you have a sender. You have a recipient. You need to decide by the Centerville start the action by spreading the word. What is he using to spread the word where is the recipe? And so that the recipient can received the word about the product and viable the recipient tax. Take action on that. And finally, how do you manage this entire cycle? Because once the recipient takes action and comes back onto the product you want toe, make him the sender of the next cycle and keep repeating this cycle on and on, and that's with this becomes a scalable, sustainable and repeatable model of good. Let's make this more visual with the growth candles. So this is what we're talking about. You have the sender, the senators on your product, and this, essentially is the part of the canvas that describes what's happening within your product. And then you have the recipient. The recipient is on an external network. So if you think off the instrument on Facebook example again. This is Instagram, a user this here using instagram and the U the sense out of a photo, which is received by the recipient on Facebook. So it showed up on on the newsfeed on Facebook. So this is a pattern that we see the Peter across. Even if you're using invites you, you're probably you. Ask a user using your product to send out an invite on on an external it. With that external, it would be email. It could be, ah, Facebook. It could be anything with you can target a particular disip e int with a message about your product so the good can with starts with identifying these two aspects that there's a product, something goes from here on to an external network. The recipient I'm seeing this takes action and comes back onto the product. So that's how the cycle goes on between the product and the external network. As we mentioned the first part of the good canvases viable. The sender spread word about the product. So how are you motivating the center to spread word about your product? Secondly, viable the recipient. Take action. What is the sender using to spread word about your product? What? What is it that send us cents out? So in Getafe Instagram, it's a photo that gets sent out. If you're if you have using YouTube, you take the video and embedded onto a block or embedded onto your Facebook feed, and that's a part of the problem that gets sent out. In some cases, that might just be invites, but in a lot of cases there's there's something from the product that gets sent out onto an external network. Finally, with is a tent out, and that's the external network. And at the end of it all, how can you manage this whole process a close both the product and the network. Now this good campus is designed in this fashion to show the design off how vital growth occurs. The fact that there, too, people involved sender and the recipient. The fact that they inhabit two separate points, the product itself, the send others on the product and the recipient is on an external network. The fact that the cycle starts from the center, most of the external net will get seen by the recipient and recipient comes back to your product. And then for the next cycle, we want to make him the sender. And that's how the cycle keeps repeating. So the the special construction of the good canvas itself shows how growth actually works between the product and leveraging an external network. If we see this repeatedly, products keep leveraging external networks to bring people back onto the product. When, when early social networks like Babel and Feet Book started, they used email, somebody would send out an invite from Facebook onto using that email contact and bring them back. And so the address book and integration happened over there. When YouTube started YouTube, leftist MySpace toe. The video from YouTube would be put on MySpace and the U S from there would come back to you, too. So in general, we've seen this model even before. If we sell finger using Facebook to get users, we've seen this model off a product you think an external network repeatedly. So this is repeated model for user acquisition that we've seen on the Internet. And the very fact that the Internet itself allows so many networks to try. Whether you think off email at the network or you think of the blogosphere, the network with yeah, you have blocks and then each block is connected to leaders, and some of the things have their own blog's who have the own readers are committing that also the network or you think of social networks as a network. The Internet allows these external networks two x five, and that is really the reason why Internet products are so uniquely positioned to grow Vitaly. And that is why offline products non Internet products cannot grow Vitaly organically because they do not have this network. In fact, even if you think often offline product that does grew from person to person something like Ambien, which is multilevel marketing. If you think off our top away, if you think of these examples, a man top of were actually create networks, the multilevel marketing model itself in the network. So whenever you need you this to bring in other users, you need to realize that the users need to be connected with either the users in the first place. And usually that happens on these networks. And that's why we we think of the good canvas as something which can be divided into two parts assembled on a product and the recipient on a network. And with those two in mind, structurally, we can decide all these five elements off. Making this growth plus is happened repeatedly, So that's what we're going to be discussing in the next few, uh, classes in the scores. And with that, I just want toe introduce the growth canvas in this wanted to introduce the both canvas over here. Thank you so much. 5. Three Case Studies in Growth: welcome to the final video in the Growth canvas. So far we've looked at the whole canvases such we looked at each end of the element. We're just going toe the cap, the whole canvas in this video, and we're going to apply to a few common examples to see how the good can This can be used to bigger have a couple of case studies that's part of this video. So before we get to the canvas, I just want to talk about and quickly gap the dog design principles for good, because this is something I've been stressing on from the beginning. We often think of growth as an optimization exercise, a mathematical exercise. You figured out your channels and then you start up to my finger channels. But before you figure out your channels when you're thinking about organic vitality, you're actually talking about creating growth as part of the product experience, and that is not a plea decided channel. It's something that very good product to product, so designing that for the particular product is an exciting itself. And that's why this whole course focuses on understanding group as it s a other design exercise. So If you think of the videos design principles for goat, The first important element is that the growth the book by other teas for the product should be aligned with the motivations of the user. And that's what we call the good action. The first design principle is to create a gloat action, that alliance with the reason the user is using the product in the first place. And this is what we talked about and when we looked at the centre motivations. The second key priority is to divine seeds that need to be sent on an external network. Now the need to be sent part is extremely important because every product has seeds, but not if the feed needs to be sent on an external network. A seed typically needs to be sent externally only when it facilitates an interaction between two people and but by the vitality itself with an interaction between two people. That's why the seed needs to be at the court, often interaction. So you need to figure out what are the seats on my product, which again facility and external interaction with another, but another user. The third thing that's important from a design perspective is that you need to choose the light external network where the seats travel and get exposed toe other users, other recipients out there and finally unique design the pitch on the call to action for the recipient based on which the recipient takes action. So this is the overall design off the canvas that we looked at so far. The sender is on your product, the recipient of the an external network. To start the cycle, you need to ensure that the sender is sufficiently motivated to send a message out of the product. The recipient receives the message and Easter take action on that. The seed carries the message. The external network is the substrate on which the seed travels. And finally you need to then this like an engine and optimized this over time. So this is how we've seen the growth can with this a hole. But let us quickly look at all the building blocks that are involved and how all of them fit together as a quickly cap off the whole course. So to start with, we have descended and the recipient, because that's the to people involved in any Wedel Good action is such. The first thing is you want to start the action, so you want to figure out by Will the sender send out the message in the first place? Bible, the recipient. Take action on that message. What is the seed that scatting this message out there? Where is the siege moving to? So what is that external network that that allowed the seat to move and infect different recipients? Finally, how does this whole thing work? And this is where the cameras becomes interesting, Because this how involved in the last picture itself first part is that you need to send the seats out there. Secondly, you need to ensure that this split on the external network Tood you need to ensure that the recipient clicks on it and food. You need to ensure that you convert the recipient to an end state that is desirable for you Now. In most cases, you would want to convert the recipient so that the recipient starts a new cycle itself. Coming from here, he can start another cycle starting here. But not all products necessarily require that, For example, on YouTube, if I see a video there am I discovered that I may just want O view more views. I might not want to instantly share those videos. So how how can we convert them to some desire to state with the user takes an action which either start to cycle or actress a proxy for an active users. So the user coming onto YouTube may either start a new cycle. Or, at the very least, we would want toe, convert him and do a more active you that assigned in user. So this, in effect, is the whole group canvas laid out in all its eight elements, the central four and gaps encapsulated within the how. But if you again think of it as the two parts of the canvas being the product on which to send the this and the recipient, the External Network on Ways to Recipient is you again, see that these two elements descend and the convert on the Goettingen actually happened on the product and the spread and the click happened on the external network. So it remains consistent with the original vision of the canvas, which is that these four elements on the left over here a part of the product happened on the product. The four elements on the light happened on the external network. But when we're being strumming on the canvas, it's important that we start with the full elements at the periphery. First, the two wise the water and the weird. Because do that the design elements. And once we've got all of those figured out, then we get into figuring out how we're going to optimize this on an ongoing basis. Now, the light really used the scan with is to start out and make these decisions that okay, this is why the user will be sending out This is by the by the recipient will be taken certain actions. So you list out these hypotheses hypotheses, but you don't stop that you start testing. The hypothesis is either that and once you've tested the hypotheses, you come back and you make a blue key changes to the canvas and see if the whole thing still remains consistent. Whether you need to make a change after that, where the center motivations are not working to start me, that the seed has to change or you need to create some form of incentive. So all of those questions start coming in at that point now, with every model that we've discussed so far, we've had a few questions that we've looked into. So while designing the can with it's important that you refer back to each of those questions well, figuring out the hypothesis for each and every box over here. Now let's take a few case studies to illustrate this better. Let's take the INSTAGRAM Key study, which have talked about a lot from the beginning. And Instagram has shown one of the fastest viral growth curves ever, one of the steepest growth curves ever. And this canvas illustrate exactly why that happened. There was a clear send a motivation. They were self expression that was bragging. Hey, I'm taking a beautiful picture. We're here and there was a clear case off center motivation. There is a clear case of discipline motivation, because the picture was interesting and it created, intrigued because the recipient often knew that the sender on his own was probably noted that photographer, but he was had taken an uncanny, optimistically beautiful picture. So the motivations were aligned. The picture was deceived that was being sent out. An instagram very cleverly chose Facebook which had a lot going for it to start with. Instagram optimized this by ensuring that you just clicked photos more often, and it made the share a very critical part off the fordo clicking process to share was actually a very critical part of the flow. And that's what ensured that more than most seats went out onto Facebook. Facebook itself as a network allowed spread. I'm not mentioned that here because on the seed side of things, there wasn't anything on the sea that enhanced the spreader that could be treated around to enhance the spread. But Facebook, as a network was, is one that is designed for spread, so that was a great job of network. Again, users would click because the quality of picture with the filter again aligning with the you the motivation and finally, the goal for Instagram verse that the youth would click in Sudan would ultimately want them toe download the APP itself. And so if the user had clicked on a mobile, it would take them to the APP store and and with the new AB downloaded starting the cycle again was fairly simply, just clicked. The picture put on a filter and shared it. So the numbers off steps after the download will actually the leaf you and almost everybody who's downloaded the APP ultimately started the cycle. So Instagram was is a great example of everybody coming on toe, the app actually starting a new cycle. And these are all the various treatments the align motivations, the choice of external network, the huge conversion from recipient to center. All of these contributed toe the dearly first school that concern them. Another example is Airbnb, which I have talked about quite a bit. So the whole course again, if you think off motivations on Airbnb, the motivations are very closely aligned with the transaction. There's a clear reason by the host sets up a particular listing. He wants more than more people to see the listing and then that particular department now Airbnb initially chose Craigslist of an external network. Now the user and the recipient on Craigslist was typically a traveler interested in this listing, so there was a clear reason for him to click and come back to a B and B. The listing was the seed external it with with clicks list Now to optimize this Airbnb insured that more than more listings were created, and most of them were close posted. Now this is important because initially A, B and B had fewer travelers, then creates listed. So a host putting something on Airbnb was naturally motivated to also close posted over there. So the same part off it was less often optimization problem, more off and indignation. Problem with Craigslist and motive aligning, lining the motivation of the host with the goal off in the Indian B, which essentially was that every host who creates a listing on Airbnb also puts it onto Craigslist. So there was an organic motivation over here, which increase the number of sense clicks worked out because the travelers who were checking out the listing on the exist wanted to transact, and so they would click on it and drive that they would have to actually sign up onto A B and B. Which of us essentially the final bullet? A, B and B with interested in more than starting a new cycle? They were interested in getting new sign ups, and so it being be again, the scan was shows how the various parts off the good canvas work together to ensure that a . B and B's good with, well structured, a final example that I'd like to take here again, something I've talked about quite a bit, and that's why I want to end with. This is YouTube when you do have started, there were very few people using you to Andi. You do with the unique guests with. If you don't have people creating videos, you don't have anybody coming toe do those videos. So initially you do kind of sold this chicken and egg problem. Using competitions competitions was structured in a way that the most supported video would win the competition. That in itself had a vital element to it because the moment you they would upload a video to win the competition. He would share that with all all his friends on different networks and drink them back over toe aboard the video. So there was a There was a vital look going on from day one because of the way the competition was structured. But over time, self promotion, self marketing in some cases self expression has become a key. It's reason for do this wanted to spread the word about the videos if you think of the fun , fame and fortune you do started with the fortune element. But then fun and fame have bean the organic reasons for spreading the word about the video in case of the recipient, there's always a clear call to action when you do have been a YouTube video embedded embedded on an external network. There's a clear call to action in terms of broadcast yourself. Checked more videos on YouTube In general, the video, the interestings of the recipient, is engaged. The seed is the video, and initially, the external network that was Children was largely MySpace. And again, I explained this earlier in the choice of networks. That he's in. My space was chosen because they with a lot of bands, soothing MySpace to communicate with defense and video with a great model of communication for them because they could share the life performances over there. So initially, MySpace work very well. The bloggers field work very well. Over time, Facebook became an important source of traffic for you, too. So the choice off network changes over time. But initially my speech with a great choice of network for you too. Over time you do with optimized. It's vital Luke by getting you this to create and share more video than on ongoing basis. So the moment you have creation of seeds as something that is integrally tied to the good off your product, you know that you do that engagement airline. And that's what's worked for you, too, in terms of spread again. As I mentioned, the related videos that are shown at the end off a particular video, even when it's viewed in a Vigen enables impede is the chance that video will be shared further on the external network. So YouTube is very well optimized for split in that manner. Again, the video actors, the demo and the discipline wants to click it. And finally, what we want is either for the for the person coming in to sign up or the person coming in to share one of the video than in both of these cases. There's the number of steps that they need to be ensured that that they are at a minimum. But what's interesting about YouTube, in which but it's different from Instagram is that not everybody who comes and will be starting a new loop and Instagram. Almost everybody downloads. Thea will start a new loop of sharing pictures out of the air. What's more important for you to bits that once I s a disciplined on an external network C five or six different videos from YouTube? The ubiquity shows me that YouTube is the go to place for videos. So I might not come and start the new cycle with my first video exposure itself. But after seeing a few different videos, I mean the alleged Okay. Instead, off watching all these videos here, let me go and check out new video on YouTube and that's what's really happened over time, which is made you do the number toe second largest search engine out there, said So those are the three examples that I wanted toe show too. Showcase how the good can was, can be used to explain group for different products. There's a few things that I would just like to point out before we close the schools which are all the later toe how you go about using the growth canvas. A few points over here. The first and most important point is that vitality the social interaction between the sender and the recipient. So the first thing is to map the social interaction figured out who the sender is, who did recipient is and what is the context in which they're going to be discussing? So if it a Skype, they want to be talking to each other. So this is a reason for vitality. If it's you too, one person wants to show something off to the network. The reason for vitality to map that social interaction Once you map that you will pretty much know the two wife the motivations at such now on every box ensure that you brainstorm , ensure that you brainstorm different solutions. Ensure that you have different answers to the questions. And if you if you get going on so fairly quickly on a particular box, try to argue counter examples. Why can't this be the see if I can Something else be the seed. Why should we be going after this external network? Why not something else that keep arguing counter examples Because that helps you. That opens new possibility than new opportunities for you in to himself. How you execute a good strategy just as with the external. It, for example, even with C. Try different seeds. So if you're thinking off something like Cooler is the question to see this. The answer. The seed is the question. Answer together, seed. Can we use the common? Doesn't see. Try different a ways off Thinking about what can be used as a seed all to do. Ensure that you keep testing your assumptions with you. This because all of this is great as a brainstorming tool. But all of this needs to be grounded in reality, and that comes only to customer development. To keep insuring that you test all assumptions with you this and finally, keep refining this canvas constantly to a be distinct. So both testing with you this in terms off, meeting them and discussing the motivations of why they would share with them or even in terms of actually implementing and doing a B testing. Keep making doing these tests come back to the canvas, refine your hypotheses and then figure out if the whole can was still makes sense. See if something else needs to be changed. Implement the new changes, test them again, come back with the feedback and put the feed back into the canvas so there's this constant feedback loop that needs to keep running for the canvas to be effective. So that, essentially, is what I wanted. I want to talk about. On the whole, the five elements that make up the canvas by the center will send something out by the recipient will take action. What is the seed where it's the external network and how does this whole thing go? And that's the good candles for you. So the last thing that I want to leave you with before I end this course is that the whole point of building the growth canvas is too explain that vital Groot, especially organic weather group, is about design. It's about ensuring the delight you, the motivation said there. It's about ensuring that the light external network is integrated with. And so it's about design and very often we forget the design part. We think. Okay, let's put an invite loop and keep optimizing the key. And that's not not really what organic vitality is about, and we've already think that this whole optimization focus on vitality actually fails. So the message that I want to leave out here is that you need to design organic vitality before you optimize it. Thanks for listening to the whole cities off videos on this. And I hope this was useful. I'd love to hear from you. I'd love to see how you use the girl canvas, So please get back to me Death. And when you have any questions or any other things to share the boat, Thank you so much.