Scaling Growth | Gustaf Alstromer, YC Partner (formerly Airbnb) & Ed Baker (formerly Uber) | Summary and Q&A

TL;DR

Ed and Gustav, former growth team leaders at Uber and Airbnb, discuss their experiences scaling growth teams and share insights on the importance of experimentation, product-market fit, and the role of data analytics and engineering in driving growth.

Key Insights

• 🔍 The growth team at Uber and Airbnb started small and scaled rapidly, contributing to the success of both companies.
• 📊 Running experiments and A/B tests is crucial for growth teams and can lead to valuable insights and improvements.
• ☑️ A combination of art and science is necessary for successful growth strategies, with intuition and experimentation playing key roles.
• 💥 Viral growth can be achieved through creative strategies, such as creating apps that tag and involve users' friends.
• 🌍 Global expansion requires adapting growth strategies to different markets, considering cultural factors and product gaps.
• 🙌 Collaboration between product, engineering, analytics, design, and marketing is essential for effective growth teams.
• 💰 Paid acquisition can accelerate growth, especially in competitive markets, and should be integrated with product teams.
• 🔍 Monitoring and optimizing growth metrics, such as retention and engagement, becomes increasingly important as companies grow.
• 🌱 Building a great product and focusing on user experience are crucial for sustainable growth.

Transcript

what's pretty cool is a few guys who have been living the centre of building up these growth teams kind of for the past you know seven or eight years Edie joined uber to start the growth team when it was five people and then over the three and half years became how the VP of of both product and growth for kind of Olive uber and Gustav joined and th... Read More

Questions & Answers

Q: How did Ed and Gustav's experiences in the social viral growth era shape their approach to growth teams today?

Ed and Gustav's experiences in the early days of social viral growth allowed them to develop an intuition for effective growth strategies, which they now apply to their work in scaling growth teams. They understand the importance of cross-functional collaboration and experimentation, leveraging data analytics and engineering, and adapting strategies to specific markets and cultural contexts.

Q: How did the growth team at Facebook differ from the growth teams at Uber and Airbnb?

The growth team at Facebook had a strong focus on new user acquisition and improving features related to friend suggestions and connections. At Uber and Airbnb, the growth teams expanded their focus to include retention, engagement, and two-sided marketplace dynamics. Additionally, the structure and size of the growth teams varied across the companies.

Q: What were some of the challenges faced by growth teams in real-world companies like Uber and Airbnb?

Real-world growth posed challenges related to city-specific strategies, addressing cultural differences, and adapting to offline steps in the user funnel. For example, Uber had to develop strategies to encourage new drivers to overcome nervousness and take their first trip, while Airbnb had to consider translation issues and address product gaps across different countries.

Q: How did Ed and Gustav approach the balance between organic growth and paid acquisition?

Ed and Gustav emphasized the importance of building a great product that users love, as organic growth through user recommendations is a powerful driver of growth. However, they acknowledged the value of paid acquisition as a means to accelerate growth, especially in competitive markets. They highlighted the need to calculate the lifetime value of users and consider the appropriate channels for investment, such as paid marketing platforms and partnerships.

Q: What was the significance of the Northstar metric in growth teams at companies like Uber and Airbnb?

The Northstar metric, such as monthly active users or weekly trips, served as the one key metric that defined the growth team's goals and guided decision-making. It allowed teams to align their efforts towards driving growth, whether through new user acquisition, retention, or engagement. The Northstar metric also helped track progress and set goals over time, adjusting for seasonal trends and market dynamics.

Q: How did Ed and Gustav approach scaling growth teams within their respective companies?

Ed and Gustav implemented different approaches to scaling growth teams. Ed emphasized the importance of a well-structured team with cross-functional roles, similar to the model at Facebook, while Gustav emphasized the need for other teams within the company to adopt a growth mindset and utilize experimentation and data insights. Both recognized the key roles of engineering, data science, and product management in supporting growth efforts.

Q: Can you share any specific examples of experiments or tactics utilized by Ed and Gustav in their growth teams?

While the content did not provide specific examples, both Ed and Gustav stressed the importance of experimentation and data-driven decision-making. They noted that many successful growth tactics and experiments were often counterintuitive and required a willingness to take risks and challenge assumptions. They also mentioned the significance of small tweaks and optimizations that could have a significant impact on growth, citing examples like copy changes for better user engagement in specific markets or encouraging specific user behaviors through innovative onboarding methods.

Summary & Key Takeaways

• Ed and Gustav joined Uber and Airbnb, respectively, to start and scale their growth teams, focusing on the intersection of product and marketing to drive user growth.

• In the early days of social viral growth, they experimented with tactics like viral Facebook apps and leveraging new platforms such as the mobile app market.

• At Facebook, Gustav observed the shift in focus from new user acquisition to retention and engagement as the company grew, with the growth team working on improving features like friend suggestions.

• Both Ed and Gustav emphasized the importance of a well-structured growth team, with cross-functional roles, such as product, engineering, analytics, design, and marketing, all working together.

• They discussed the challenges and adaptations required for growth in real-world companies like Uber and Airbnb, including city-specific strategies and addressing cultural differences.

• Paid acquisition was also explored, with considerations on when to invest in it, how to calculate user value, and the need for integration with other growth functions.