How to get users

Credit and Thanks: 
Based on insights from 20VC by Harry Stebbings.

Brief Summary

Val Scholz shares insights from his journey in growth marketing, particularly during his tenure at Revolut, where he played a pivotal role in scaling the company from zero to ten million customers. He discusses the importance of finding unique market opportunities with minimal competition and emphasizes the significance of effective referral programs in driving user acquisition. The conversation also delves into the challenges of rapid growth and the necessity of adapting marketing strategies to meet evolving customer needs.

Deep Dive

Val Scholz's journey into the world of growth marketing began unexpectedly, rooted in his early experiences as a software engineer. Initially selling websites, he became intrigued by a friend's success in building his own online platforms, which led him to explore search engine optimization. This curiosity evolved into a passion for marketing, ultimately guiding him to a pivotal role at Revolut, where he scaled the company from zero to ten million customers. Scholz emphasizes that the most significant lesson from his time at Revolut was the importance of focusing on doing one thing exceptionally well rather than spreading efforts too thin across multiple initiatives. This principle was particularly evident in the company's referral program, which accounted for 90% of its B2C customer acquisitions. By optimizing the onboarding process, Revolut made it easy for new users to invite friends, creating a self-sustaining growth loop that propelled user acquisition.

As Revolut grew, traditional marketing methods became increasingly outdated. Scholz argues that these approaches are often not scalable, as they rely heavily on human output. For instance, if a company wants to double its website traffic, it typically needs to hire twice as many people, which can lead to inefficiencies. In contrast, modern growth strategies leverage software to automate marketing processes, allowing for exponential scaling with fewer resources. This shift is crucial in a saturated market where companies must find innovative ways to stand out.

Content marketing emerged as a powerful tool for customer acquisition during Scholz's tenure. He notes that user-generated content can create a dynamic ecosystem where customers not only engage with the brand but also generate organic traffic. By fostering a community around the product, Revolut was able to enhance its visibility and attract new users without relying solely on paid advertising. This approach aligns with the broader trend of companies seeking to build authentic connections with their audiences.

When it comes to hiring a head of growth, timing is critical. Scholz believes that this role should be filled after demonstrating product-market fit. A head of growth is expected to drive metrics and growth, which can be challenging if the product is still being refined. He suggests that early-stage founders should look for individuals who are not only ambitious and hardworking but also possess a strong analytical mindset. Revolut's hiring strategy focused on young, driven individuals who could grow with the company, emphasizing the importance of attitude and mindset over specific skills.

However, Revolut's hiring process was not without its challenges. Scholz reflects on the mistakes made during recruitment, such as not probing deeply enough into candidates' past experiences to understand their true contributions. He emphasizes the need for rigorous follow-up questions to gauge a candidate's impact on previous projects. The interview process at Revolut involved practical assessments, where candidates were tasked with solving real-world problems, allowing the team to evaluate their problem-solving abilities and structured thinking.

The culture at Revolut was characterized by high expectations and a relentless drive for excellence. Scholz likens the environment to that of elite sports teams, where performance is paramount, and individuals must consistently deliver results. This culture can be both motivating and daunting, as it fosters a sense of urgency and accountability among employees. However, it also means that when rapid scaling occurs, everything can break. Scholz recounts how, during periods of explosive growth, the company faced significant challenges, such as overwhelmed customer support systems and database limitations. The need to constantly rebuild and adapt processes became a defining feature of Revolut's growth journey.

In terms of data strategy, Scholz critiques conventional wisdom that relies heavily on event-driven data infrastructure. He argues that this approach often leads to inefficiencies and a lack of actionable insights. Instead, Revolut adopted a centralized data warehouse model, allowing for more nuanced analysis and segmentation of user behavior. This shift enabled the company to connect various data sources and derive meaningful insights that informed growth strategies.

Key Takeaways

• Effective referral programs can drive substantial user acquisition, as evidenced by Revolut's success.

• Understanding and addressing customer use cases is crucial for product positioning and activation.

• Rapid growth can strain operational capabilities, necessitating scalable systems to maintain customer satisfaction.

Actionable Insights

• Identify and target niche markets with low competition to establish a strong initial presence.

• Develop and optimize referral programs that facilitate quick onboarding and user engagement.

• Regularly gather feedback from users to understand their needs and adjust marketing strategies accordingly.

• Invest in scalable customer support systems to handle rapid growth without compromising service quality.

Why it’s Important

The insights shared in this podcast are vital for founders and marketers, as they highlight the importance of strategic market entry and customer-centric product development. Understanding these principles can lead to more effective growth strategies that not only attract users but also retain them in a competitive landscape.

What it Means for Thought Leaders

For thought leaders, the information presented underscores the necessity of innovative thinking in growth strategies. It emphasizes the importance of adaptability and responsiveness to market dynamics, encouraging leaders to foster a culture of experimentation and continuous improvement within their organizations.

Mind Map

Key Quote

"The best Founders find these markets to find these unique insights ready to go."

Future Trends & Predictions

As the landscape continues to evolve, companies that prioritize user experience and community-driven growth strategies are likely to thrive. The increasing reliance on digital banking solutions suggests that referral programs and personalized marketing will become even more critical. Additionally, as competition intensifies, firms that can effectively leverage data analytics to understand customer behavior and preferences will gain a significant advantage in the market.

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Thanks for reading, have a lovely day!

Jiten-One Cerebral

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