Step 2: Brainstorm & prioritize
Now that you’ve articulated your growth goals, it’s time to map out a strategy to achieve them.
For this step, you’ll need have a solid understanding of two key metrics: customer acquisition cost (CAC) and customer lifetime value (LTV).
Ready to start? In this step, you’ll brainstorm marketing channels and tactics to reach your customers and then evaluate which of these are most viable.
Involve your team in the brainstorming to get different ideas and perspectives. Watch out for any bias toward certain tactics and channels—it’s too soon to decide what will work or not work.
Watch the video and then complete the activities in the spreadsheet (see below).
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Video transcript | Step 2: Brainstorm & prioritize
WHAT TO DO NEXT
- Refresh your memory on the content provided below.
- In the spreadsheet you downloaded in Step 1, open the tab for Step 2 and complete the activity.
- Proceed to Step 3 of this playbook.
The five key questions to consider when reviewing the channel tactics you’ve brainstormed:
- What is the CAC in that channel? (Should be no more than ⅓ of your customer LTV)
- How many customers could the channel realistically yield and would this number get you to your growth goal?
- Is your target customer on this channel?
- What is the time needed to execute the tactic? (It’s important to “time stamp” for measurability.)
- Which team member will be in charge of this growth tactic?
Paid vs. earned channels
Earned (“free”) channels
|Social (e.g., paid Facebook, Twitter and LinkedIn)||Social (e.g., free Facebook, Twitter, LinkedIn)|
|Direct sales||PR (e.g., free media publicity, promotion from internal employees)|
|Out of home (e.g., paid billboards, subway ads)||Virality (e.g., referrals from existing customers)|
|Affiliate (paid programs for partners to promote)||SEO (e.g., inbound & outbound keyword tactics, backlinks, content)|
|Trade shows (paid space at events)||Community building (e.g., local meet-ups, speaking engagements, thought leadership content)|
How do I know which channels would reach my target customer?
Get key insights on customer development from growth marketing expert, Alison Gibbins.
|HubSpot blog: The 6 Marketing Metrics & KPIs Your CEO Actually Cares About [Cheat Sheet]||Learn more about key marketing metrics, including cost of customer acquisition (CAC) and the ratio of customer lifetime value to CAC (LTV:CAC).|
|Smile.io blog: How To Calculate Your Customer Acquisition Cost (CAC)||This in-depth look at CAC is presented in an easy-to-understand way. Well worth the read.|
|Smile.io blog: The Easy Way to Calculate Customer Lifetime Value||This in-depth look at customer lifetime value (LTV) is also presented in an easy-to-understand way.|
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Startup = Growth
– Paul Graham, Y Combinator
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