The original growth hacker reveals his secrets | Sean Ellis (author of “Hacking Growth”)

Sep 5, 2024 1h 44m 50 insights Episode Page ↗
Sean Ellis, a pioneer in growth, discusses his famous "Sean Ellis test" for product market fit, explaining its origins, application, and how to act on its results. He also shares his framework for sustainable growth, prioritizing activation, engagement, and referrals before scalable acquisition.
Actionable Insights

1. Gauge Product Market Fit

Ask users, “How would you feel if you could no longer use this product?” with “very disappointed,” “somewhat disappointed,” or “not disappointed” options to identify if your product is a must-have.

2. Focus on “Very Disappointed” Users

Concentrate on feedback from users who would be “very disappointed” if your product disappeared, as they represent your must-have users and core value.

3. Optimize Onboarding for Retention

Enhance retention by focusing on guiding users to the right initial experience during onboarding, rather than solely relying on tactical retention efforts.

4. Identify Core Value from Enthusiasts

Analyze the “very disappointed” user segment to pinpoint the specific functionality or benefit they value most, as this represents your product’s core must-have.

5. Streamline Onboarding for Speed

Streamline the onboarding process to quickly guide new users to experience the product’s core value, ensuring they achieve an “aha moment” and feel protected/benefitted early on.

6. Deeply Understand Must-Have Users

Conduct follow-up qualitative research with your “very disappointed” users to deeply understand their context, problems, and why the core benefit is important to them.

7. Align Product Roadmap with Core

Ensure your product roadmap prioritizes features and improvements most important to your must-have customers, as identified through their feedback.

8. Define Value-Driven North Star

Collaboratively define a North Star metric that quantifies the delivery of your product’s core must-have value, reflecting how many users experience product market fit.

9. Prioritize Asking Right Questions

Focus on asking the right and often obvious questions at the right time to deeply understand problems, rather than prematurely jumping to solutions.

10. Ignore “Somewhat Disappointed” Feedback

Disregard feedback from users who would be “somewhat disappointed,” as acting on their “nice-to-have” suggestions may dilute the product’s appeal for your must-have users.

11. Convert On-the-Fence Users

Identify the core benefit valued by “must-have” users, then ask “somewhat disappointed” users seeking that benefit what improvements would make it a “must-have” for them.

12. Set Growth Readiness Target

Define a specific target percentage for the Sean Ellis test (e.g., 40%) and commit as a team not to aggressively pursue growth until this target is consistently met.

13. Follow Growth Optimization Sequence

After validating product market fit, optimize in this sequence: speed to value, engagement loops, referral mechanisms, revenue model, and then scalable customer acquisition.

14. Achieve Full Growth Funnel Efficiency

To remain competitive, focus on achieving super efficiency across all parts of your business, including conversion, retention, and monetization, not just customer acquisition.

15. Foster Cross-Functional Collaboration

Actively work to drive cross-functional collaboration between marketing, product, sales, and customer success teams for an effective, integrated testing program.

16. Systematize Idea Prioritization

Implement a systematic method (like ICE) for prioritizing experiment ideas, allowing clear explanations for choices, which builds trust and improves future submissions.

17. Diagnose Activation Bottlenecks

For low activation, deeply understand why users are dropping off by directly asking them (e.g., via email) about their experience and reasons for not completing activation steps.

18. Optimize Conversion Levers

Drive higher conversion rates by simultaneously increasing user desire for the product and reducing any friction points in the user journey.

19. Qualitatively Define Activation Moment

Qualitatively determine when a user has had a sufficiently good experience to understand its value; ideally, this “aha moment” should occur within the first session or day.

20. Leverage Test for Early PMF Signal

Utilize the Sean Ellis test as a leading indicator to quickly assess product market fit, even before robust retention data is available.

21. Survey Activated, Recent Users

Administer the Sean Ellis test to a random sample of users who have activated, used the product at least twice, and done so recently (e.g., within the last week or two).

22. Aim for 30+ Survey Responses

Target a minimum of 30 responses for your Sean Ellis test to ensure a reliable sample size that you can confidently act upon.

23. Reposition Product with Core Value

Reposition your product and messaging to clearly highlight the core must-have functionality identified from your most enthusiastic users, setting the right expectations upfront.

24. Uncover User Motivation

Ask “very disappointed” users, “What is the primary benefit you get?” (open-ended, then multiple-choice) and “Why is that benefit important to you?” to uncover deep user motivations and context.

25. North Star Metric Should Reflect Value

Choose a North Star metric that directly reflects the value delivered to customers (e.g., “nights booked,” “monthly purchases”) rather than a direct revenue metric.

26. Map Growth Flywheel

Diagram all components of your “value delivery engine,” including onboarding, activation, engagement loops, and referral mechanisms, to identify current state and opportunities for improvement.

27. Develop Early Acquisition Hypotheses

Before fully committing to a growth role or strategy, develop two to three viable hypotheses for how to profitably acquire customers.

28. Acquire for Learning, Not Scale

In early stages, conduct acquisition efforts to generate sufficient user flow for testing and optimization, rather than obsessing over scalability.

29. Ask Users How They Found Product

Regularly ask existing customers how they discovered your product and how they typically find similar products to gain insights into potential acquisition channels.

30. Integrate Research Methods

Combine qualitative insights from customer conversations with quantitative data from analytics and testing to formulate much better experiments and deeply understand user behavior.

31. Build Credibility for Freemium

If offering a freemium product, enhance its credibility by clearly presenting a paid version or business model alongside the free option, especially for new users.

32. Learn from Competitors’ Funnels

Study the download and installation processes of successful competitors or similar products to gain inspiration and identify potential improvements for your own activation funnel.

33. Reinforce Value During Onboarding

Throughout the onboarding process, periodically remind users of the benefits they will gain from using the product to maintain their desire and motivation.

34. Correlate Activation to Retention

Once an activation moment is defined, verify its effectiveness by checking if users who reach this moment have a strong correlation with long-term retention.

35. Use Product as Acquisition Channel

Consider making your product itself an advertisement or entry point, allowing users to experience value (e.g., gameplay) before requiring registration.

36. Amplify Existing Word-of-Mouth

Implement referral programs with incentives as an accelerant for growth only when your product already generates strong organic word-of-mouth.

37. Design Compelling Free Tier

For a freemium model to succeed, ensure your free product is so valuable and effective that it naturally generates strong word-of-mouth.

38. Maximize Natural Engagement

Understand and design your engagement strategies to maximize user interaction within the natural usage cycle of your product.

39. Choose Growth-Oriented Metric

Select a North Star metric that can consistently trend “up and to the right” over time, providing a clear, positive indicator of sustained growth and value delivery.

40. Time-Cap Metric Selection

When collaboratively defining a North Star metric, time-cap the discussion (e.g., 30 minutes) to encourage efficient decision-making.

41. Crowdsource Experiment Ideas

Encourage and facilitate the submission of experiment ideas from across the entire company to foster a high-velocity testing program and leverage diverse perspectives.

42. Leverage AI for Communication

Utilize AI tools like ChatGPT to generate initial drafts for common questions or advice, allowing for quick tweaks and significantly increasing communication efficiency.

43. Adopt AI for Growth Strategy

Leverage AI systems to identify underperforming business areas and suggest experiments, as dispassionate recommendations can help overcome ego and drive effective cross-functional growth initiatives.

44. Prioritize Long-Term Value

Prioritize building a strong reputation and continuous learning over short-term earnings, as this approach can lead to greater opportunities and long-term success.

45. Manage Customer Dissatisfaction

If a customer is genuinely unhappy with your product and requests a refund, provide it without hesitation to protect your reputation and avoid prolonged dissatisfaction.

46. Tailor PMF Threshold

Consider cultural nuances (e.g., optimism/pessimism) when setting your specific product market fit threshold, as a 40% “very disappointed” might vary in meaning across different user bases.

47. Avoid Test for One-Off Products

Do not use the Sean Ellis test for one-off products or experiences (e.g., a single movie or workshop) where users wouldn’t naturally express disappointment if they couldn’t use it again.

48. Prioritize Core Product Issues First

If users who overcome onboarding challenges still dislike the product, focus on resolving core product issues or targeting the right users, rather than solely optimizing onboarding.

49. Strive for Valuable and Unique Product

Ensure your product is both highly valuable and offers a unique solution to be considered a “must-have,” as commodity use cases often have easy alternatives.

50. Adapt Survey for Experiments

When testing changes like onboarding updates, survey only users who have experienced the new changes to accurately gauge their impact on product market fit.