The Right Way To Set Goals for Growth: Understanding the Importance of Absolute Numbers

The Right Way To Set Goals for Growth: Understanding the Importance of Absolute Numbers

When it comes to setting goals for growth, many organizations make the mistake of focusing on vague or relative targets. However, the best approach is to set absolute goals that can be measured and tracked. This means setting goals based on concrete numbers, such as the number of active users and a decrease in churned users.

Why are absolute numbers important in growth? Well, the simple answer is that they provide a clear and measurable benchmark for success. When teams set goals based on absolute numbers, they can take credit for the actions they take to achieve those goals, rather than relying on external factors or natural occurrences.

For example, let's say a team sets a goal to increase traffic to their website. They successfully achieve this goal by targeting a lower converting country, like Germany, instead of a higher converting country like the United States. While they may have hit their traffic goals, they haven't necessarily achieved their signup goals. By focusing on absolute numbers, teams can ensure that they are setting goals that align with their overall growth objectives.

One important metric to consider when setting goals is the activation rate. This metric measures the number of activated users in relation to the total number of users. There are two ways to move this metric in either direction: by changing the number of activated users or by changing the total number of users.

By setting goals around absolute numbers, teams can focus on strategies and tactics that directly impact these numbers. This allows for a more targeted and effective approach to growth.

Why People Share: Uncovering the Psychology Behind "Going Viral"

Have you ever wondered why some content or products go viral while others fade into obscurity? The answer lies in understanding the psychology behind why people share. By delving into the motivations and desires that drive individuals to share, we can gain valuable insights into how to make our own products or content more likely to go viral.

Psychologists have identified eight clusters of motivation that influence why people share:

1. Status: Humans are pack animals who are constantly concerned with their status within the group. Sharing allows individuals to associate themselves with high-status people or products, boosting their own perceived status.

2. Identity: Sharing provides an opportunity for individuals to showcase their identity and have it validated by others. People seek validation in their point of view and share content that aligns with their personal beliefs and values.

3. Helpful: People are motivated to share content that is perceived as helpful or beneficial to their tribes or communities. Sharing useful information allows individuals to be seen as helpful and nurturing.

4. Safety: Fear is deeply ingrained in our psychology, and when we sense danger, our brains pay attention. Sharing content related to safety or threats can tap into this primal motivation.

5. Order: Some individuals are motivated to share content that helps them organize and optimize their world. By sharing tools or strategies for organization, they not only appear more efficient but also help bring others into the same protocol of organization.

6. Novelty: Humans have a natural inclination towards novelty and new experiences. Sharing new products or information allows individuals to appear ahead of the curve and demonstrates their openness to new experiences.

7. Validation: We all seek validation and positive affirmation. People share content that boosts their self-esteem and makes them feel good about themselves and their place in the world.

8. Voyeurism: There is a certain pleasure derived from vicariously experiencing the enjoyment or misfortune of others. People share content that allows others to live through them and experience a sense of schadenfreude.

Understanding these motivations can help us design products or create content that taps into these psychological drivers. By incorporating elements that align with these motivations, we can increase the likelihood of our product or content going viral.

Actionable Advice for Growth and Virality

Now that we have explored the importance of setting goals based on absolute numbers and understanding the psychology behind viral sharing, let's discuss some actionable advice for achieving growth and virality:

1. Set clear and measurable goals: When setting goals for growth, focus on absolute numbers that align with your overall objectives. This will provide a clear benchmark for success and allow you to track your progress effectively.

2. Design for ease of sharing: Reduce the friction to sharing by designing your product or content in a way that minimizes effort and thinking required to share. Make it easy for users to share with just a few clicks or taps.

3. Tap into motivational psychology: Incorporate elements that align with the eight clusters of motivation identified earlier. Consider how your product or content can provide status, identity validation, helpfulness, safety, order, novelty, validation, or voyeurism to users.

In conclusion, setting absolute goals for growth and understanding the psychology behind viral sharing are crucial for success in today's digital landscape. By incorporating these insights into your growth strategies, you can optimize your chances of achieving your goals and creating viral content or products. So, take the time to set clear goals, design for ease of sharing, and tap into motivational psychology to drive growth and virality.