Growth as a Mindset and How to Win in Consumer Subscription

Growth as a Mindset and How to Win in Consumer Subscription

Introduction:
In today's competitive business landscape, achieving growth is a top priority for companies. However, growth is not just about driving product-market fit or implementing scattershot "growth hacking" tactics. It requires a growth mindset, a focus on retention, and an obsession with efficiency. In this article, we will explore the common points between these two key aspects of business success and provide actionable advice on how to achieve growth and win in consumer subscription.

Growth as a Mindset:
To truly achieve sustainable growth, it is essential to prioritize retention. A growth team solely focused on growing a product with poor retention is fundamentally flawed. Instead, it is crucial to wait for retention to stabilize or start increasing before investing in growth efforts. A leaky funnel can lead to more people having a poor experience with the product, ultimately hindering growth.

Additionally, growth should not be about manipulating people. It is important to stay true to the job the product does and focus on making it easy for people to use the product and derive value from it. Tactics like hiding dismiss links or using s-outs may yield short-term gains in growth metrics, but they will not attract and engage people who genuinely want to use the product. Authenticity and providing value should be at the core of growth efforts.

Building a Growth Team:
Once product-market fit is achieved, building a growth team becomes crucial. This team should consist of a product manager, data scientist, and three to five engineers. The team's goal should be focused on achieving a specific outcome, such as growing transactions to a certain number. It is important to avoid using fancy composite metrics that combine multiple actions, as this can make it difficult for teams to understand the reasons behind metric fluctuations.

The Growth Mindset:
Having a growth mindset means being willing to challenge the status quo and seek improvement without prejudice. Reducing friction in product flows is essential, but it is important not to go too far. Facebook, for example, has found success in taking friction out of flows to increase conversion. However, it is crucial to listen to consumer reports and take action accordingly. Customer feedback, even with millions of users, can provide valuable insights for improving the customer experience and driving growth.

How to Win in Consumer Subscription:
Consumer subscription businesses have their own unique challenges when it comes to achieving growth. Staying lean and focusing on efficiency is a common thread among successful companies. By keeping team sizes small, minimizing costs, and questioning every outgoing dollar, companies can maintain a laser focus on their product and reach strong product-market fit.

An obsession with efficiency not only helps in staying lean but also fosters a culture of growth. When resources are limited, teams develop hacking skills and prioritize ruthlessly. This culture of growth can be a defining factor in the success of a company.

Furthermore, it is interesting to note that the founders of the biggest B2C subscription companies are often immigrants. This highlights the importance of diverse perspectives and outside-the-box thinking in driving growth and innovation.

Actionable Advice:

1. Prioritize retention: Before investing in growth efforts, ensure that retention is stable or increasing. A leaky funnel can hinder growth and lead to a poor user experience.

2. Build a growth team: Once product-market fit is achieved, assemble a growth team consisting of a product manager, data scientist, and engineers. Set clear goals that are easily understandable for the team.

3. Stay lean and focus on efficiency: Especially in consumer subscription businesses, staying small and keeping costs down is crucial. Question every outgoing dollar and maintain a laser focus on the product until strong product-market fit is achieved.

Conclusion:
In conclusion, growth requires a mindset that prioritizes retention, authenticity, and providing value to users. It is not about manipulating people or implementing scattershot tactics. Additionally, in consumer subscription businesses, staying lean and focusing on efficiency is key to achieving strong product-market fit. By incorporating these strategies and embracing a growth mindset, companies can position themselves for success in today's competitive landscape.