You quite often find people who experiment but fail to see the results that they desire. It is because they miss one of the key ingredients in the growth mindset. Though they want to grow, they have a very vague idea of how to get there.
Lacking a general understanding of business principles is one of the key reasons why you might fail. You need to follow a few principles strictly if you want to see an increase in the growth rate or want to optimize the process. Here is a list of principles that are proven to help businesses succeed:
Principle # 1 Learn From Experience
Testing your ideas should be the basis to see growth. In a nutshell, testing your idea, or hypothesis is nothing but running a battery of tests to see which one works well and which one does not work well for you. We make a hypothesis because we firmly believe that we can find a better solution to a problem.
By carrying out the tests, you can either validate or invalidate the hypothesis. Though most people check this aspect using a success or failure lens, you should understand the fact that there is no such thing as failure when it comes to growth.
Success happens when you learn and failure when you do not. Even though you might have failed, you will still gain a lot of insights, which can be viewed as a success. Only after learning a subject well, you can make an educated guess. This knowledge will help you to launch successful experiments later.
Never expect to get a lot of success at the initial stage. You will eventually get there when you start to understand both the product and customer well.
Principle # 2 Be Data-Driven
By running a digital business, you will find ways to measure every step of your way. You can track easily what’s happening on your app. The three types of information that drive the growth insight are quantitative, qualitative, and intuitive.
When the topic of data pops up, everyone immediately thinks about tools such as Google Analytics and KiSSmetrics. But you should never forget about the other valuable sources of insights that are available.
Customer interviews are the perfect source of insights as they can help drive growth or product development. By investing in the analytics stack early on, you will avoid pursuing developments that won’t help your product and can focus on those that do.
Principle # 3 Employ Innovative Testing
Innovative thinking and creative ideas are the foundation for steady and consistent growth. You should never limit yourself by doing things just like your competitors. Don’t limit yourself to what has already been proven effective but see if you can find other ways of reaching the end result that is more effective.
To be innovative, you need to question and go against the status-quo. For example, if your competitors are using a 3 step signup process, it does not mean that you should assume this is the only way that makes sense.
Think of ways to enhance the process by finding the flaws. You will limit your potential results when you stop being innovative. Remember that growth is all about being creative and innovative.
Principle # 4 Never Give Up
It is terrific if you are having a conversion rate of 90% and above from trial period to paid subscription. But you should also recognize the fact that there are things that you can always improve. If you think that everything is optimized, it is wise to take a one week break. Go back with a fresh mind to see things differently and start assessing the application with new eyes.
Ask yourself questions such as: Where are we losing most of the users and where can I make an impact? Never be happy with the growth that you are getting but put in time and effort to go further.
Principle # 5 Put Proper Process in Place
Launching experiments are just one part of the story that you can see. It is the process that makes everything possible. There is no way you can sustain your growth when you do not have a process in place.
Though you might be launching new experiments, there’s a chance that you will soon lose track of what is happening. It is the process that will allow you to create a repeatable, scalable and predictable machine.
Principle # 6 Aim for Authentic and Sustainable Growth
It is essential for you to know that not all growth is equal. One of the questions that you need to ask yourselves is: Are you looking for Monthly Active Users (MAU) or customers that are long-term?
You need to understand that meaningful growth adds value to both the user and the company. Growth that is sustainable over a period of the time is called sustainable growth. You need to find a growth pattern that you can repeat to enjoy sustainable growth.
Principle # 7 Be Customer-Centric
You will not drive any short-term growth when you are not customer-centric. If your customers get annoyed, it is tough to retain them. Never forget that increasing the growth is just one part of the equation.
If you are trying to squeeze dollars from the customer’s wallet without adding any value, you will soon annoy people. It is essential for you to evaluate if the experiments that you are making will help them achieve their mission or the goals.
There are many ways to grow businesses, and there are many potential businesses that you could grow. Underlying these diverse ventures are core principles. By following these principles for growth, you can avoid common mistakes and move toward success.