How to Get Users and Grow - Alex Schultz, VP of Growth at Facebook - Stanford CS183F: Startup School

Summary

In this insightful talk, Alex Schultz, VP of Growth at Facebook, shares strategic growth tactics for startups. He emphasizes the importance of understanding user behavior, particularly focusing on marginal users rather than power users. Schultz highlights the value of personalized experiences, the significance of owned media, and effective targeting through social media. He stresses the need for businesses to optimize their landing pages for conversions and to move quickly in decision-making. By leveraging data and adopting a fast-paced approach, companies can foster growth and enhance user engagement in a competitive landscape.

Takeaways

• 😀 Focus on the marginal user: Optimize product notifications for new users rather than power users to enhance engagement.
• 📈 On-site merchandising matters: Use owned media effectively to guide users towards actions like inviting friends or making purchases.
• 🎯 Personalization is crucial: Tailor recommendations and marketing messages to users based on their previous behaviors and preferences.
• 💡 Utilize earned, bought, and owned media: Understand the value of each type of media to maximize marketing impact.
• 📊 Behavioral targeting over demographics: Prioritize user behavior signals when targeting ads instead of relying solely on demographic information.
• 🚀 Quick execution beats perfect plans: Emphasize rapid action and learning from data over waiting for perfect information.
• 🔄 Conversion strategies should be strategic: Optimize landing pages to align closely with user intentions and search queries for higher conversion rates.
• 📣 Effective calls to action increase engagement: The language used in calls to action can significantly impact user acquisition.
• 🤝 Foster social connections: Encourage users to import contacts to create a sense of community and enhance engagement on platforms.
• 🔍 Focus on the right metrics: Differentiate between confirmed registered users and activated confirmed users to measure meaningful engagement and revenue.

Q & A

What is the primary focus for product optimization according to the speaker?

The speaker emphasizes that startups should focus on optimizing for marginal users rather than power users, as the marginal users need more motivation to engage with the product.

How should notifications be managed for different user segments?

Notifications should be tailored to marginal users, who benefit from engagement cues like their first 'like' on a social media platform or notifications about bids and purchases.

What are the three types of media mentioned in the transcript?

The three types of media discussed are earned media (likes and shares), bought media (advertising), and owned media (content on your own website).

How can on-site merchandising be improved?

On-site merchandising can be enhanced by using data-driven prompts to encourage users to take further actions, such as inviting friends or making additional purchases after buying an item.

What role does personalization play in marketing strategies?

Personalization is crucial; using user data to create tailored product recommendations significantly increases engagement and conversion rates.

Why is behavioral targeting more important than demographic targeting?

Behavioral targeting is more effective because it focuses on the actions and preferences of users rather than solely their demographics, allowing for more relevant and effective ad placements.

What example does the speaker provide to illustrate the importance of a call to action?

The speaker shares a case where changing the phrasing from 'advertise' to 'create an ad' led to a 40% increase in advertiser acquisition, highlighting how wording affects user engagement.

What is the significance of landing pages in conversion rates?

Landing pages should match user search queries to improve conversion rates. For example, users looking for specific items should be directed to relevant search results instead of a generic registration page.

What philosophy does the speaker advocate regarding decision-making speed?

The speaker advocates for making decisions based on 70% of the data rather than waiting for complete information, stressing that moving quickly is crucial for growth.

How can companies create 'magic moments' for users?

Companies can create 'magic moments' by removing friction from the user experience, such as facilitating easy connections with friends on social networks, which can lead to increased user engagement.