Focus on the Goal
What is the goal of you particular organization, right? So we're going to be looking at this step right here. What's the goal of your organization. Now, when it comes to growth, right, and that's what we're looking at, what's your growth goal? There's a lot of areas where you could want to encourage growth. And this is again, where we get into like, well we could do this or we could do that. And you can't focus if you're staring at too many things at the same time. It's literally impossible. I mean look, try right now to focus on two things on opposite sides of the room. You can't do it! Like, focus works when you have two things looking at both, when you have two things looking at one, right? So if we want to focus we have to start by distilling what are the that we're going to be looking at so we know where to focus. I've always seen growth occurring in one of four places, right? If we're going to look at growth, right, growth is of four types. The first is acquisition. Alright, goin...
g out, generating additional awareness, additional traffic, additional leads, right? The acquisition of more. When most people think about growth, this is where they go. Just give me more, just dump more leads into the top of the funnel, go, go ,go, go, go. We just got a big funding round, cool. Let's buy a freaking Super Bowl ad, right? I'm going to suggest to you that you not start here at least initially. This is where most people want to focus in, you know on their growth goals is on the acquisition side. The next level is activation. Okay, activation. Ensuring that the people that we acquired here actually get activated and are ready to become customers. So when we talked about the convert stage, typically the convert stage, that fourth stage, that's where the activation is occurring. Also the excite stage, right? I don't want to forget and lose that context that we had in terms of the value journey, right? Activation occurs at the convert stage and at the excite stage. That's usually where we're kind of living there. So activation. And then monetization. We're getting them, they're activating, but we're not making as much as we should. That's when were looking at things like average order value, average customer value, churn, alright, churn reduction. And that's also I would generally place the referral bucket into monetization. Alright, encouraging referrals, some type of viral coefficient. To me, that's a function of monetization. This is getting more. This is getting more moved through. This is getting more from what you got. Okay, do you need to get more, or do you need to get more from what you got. And then finally retention. Retention, keeping what you have. Keeping what you have. So, as we begin this process I think it's helpful, right? Just even now, we can, you know, make this very like academic and talk about categories. But take a moment right now to think, you know, in your own business and same for you, those of you who are watching at home or from your office. Which of these four areas is deserving of your focus today? Now when I say focus, right, it doesn't mean that that's the only thing we do, right? When I say focus it doesn't mean that you're only allowed-- If you say you know what, really the thing that we need to be working on is activation. We're getting a lot of leads but they're just not moving through. Right, we really got to focus in on the aha moment. We got to focus in on that aha stage. It doesn't mean that you don't still have a peripheral vision. Okay, I can focus but I still have a peripheral vision. So it doesn't mean that you don't still have some side projects. So it's not focus on one of these areas at the exclusion of all else. But I do think that it's an, that it is a good idea to generally theme a month. I think its a good idea to generally theme a given month. And maybe carry that into a second month, right? What is the theme of a particular month? Is it we're going to acquire more? Is it we're going to activate more? Monetize more or retain more? And if you're just getting started my advice would be as unsexy as it is, start with retention. Start with retention. Then go to monetization, then activation, then acquisition. We optimize in reverse. We optimize in reverse, otherwise you are just pouring an enormous amount of water in an extraordinarily leaky bucket. We optimize in reverse. That's my suggestion. I know there's still a lot, hopefully nobody in this room, because I'm chastising you and staring at you awkwardly. But then there's probably some people who are going to say, nah we just need to drive more, and maybe you do, right? If you're brand new and just getting started, if you haven't sold anything yet, heck yeah. You got nobody to activate, nothing to monetize, and not a soul to retain, okay? So (laughs) if you're just getting started then by all means, focus here. This is where you live, this is where you live. And you, you know, you're going to do these things and kind of bounce around. That's why I recommend that you theme for a given month. Alright, theme, but a theme doesn't mean that it's the only thing we focus on. It just means it's the theme. So think about it, I mean seriously, take a moment and just, you know, just take a moment while we're here and ask yourself what should be the theme of where we are right now? You know, as a company, as a team, where should we focus, in which of these four areas?