Imagine you had the chance to do a hundred experiments within your company in order to achieve Extreme Revenue Growth, knowing that only one of the hundred experiments would actually have a big outcome. Well, not as easy as you might think…
Chris Out developed a Cheat Sheet which helps companies to find that 1 percent that drives over 50 percent of extra revenue.
Hendrik: What have you learned in the past thousands of hours working in the field of Growth Hacking with different sized companies ranging from start ups, scale ups to corporates?
Chris: We have to be honest, a lot of people talk about Growth Hacking but don’t have a freakin clue what they’re doing. It’s actually way harder than people think. There are so many dynamics that you need to take into account.
Together with my wife, we’ve created a new model, where if you would only do these three things, we know that it will help you grow your company and your revenue way more sustainable. And it’s going to bring you focus.
So we created a cheat sheet. It’s crazy as we are giving away our knowledge for free. People can download it and do it themselves. The most important thing is to set goals and have relentless focus on what’s driving impact.
Based on the pareto principle (20% of experiments will generate 80% of the impact) we figured out that only 1 percent of the things we do, generate more than 50 percent of the outcome. And what if I could help companies find that 1 percent. Because this means that 99 percent of the things you do are less impactful.
So we came up with three things: First one, the dream 100, which is about leveraging other peoples network. In order to find out where is an audience in place, that you want to serve to.
Second one is building a value latter. It is a series of offerings, that increase in value and price, so people start with a very small thing, and when they like it, they buy a more expensive product with more value and so on.
The the third thing was Revenue Stress Testing. A lot of companies say they want to grow, but they think too much about what-if scenarios. With a stress test you find out what would break in your organization if you would scale up fast.
Hendrik: About the Value Latter, what exactly do you do with it?
Chris: What I have always told people is that, you need to have a trojan horse at the start of a journey with a potential customer, where they read something or go to some kind of first product, and that delivers so much value, that they think: “Ok, if that person offers something to me that is three times more expensive, I’ll buy it without any doubt”.
So you start with something really small, which is like a free give-away or starting product with a very low price, you make sure that the perceived ratio of quality to price is so outstanding, that if you offer a higher priced product, people will see that as a no brainer.
You can listen to the full version of the Interview with Chris Out in our new podcast episode.
If you want to know more about Chris, visit chrisout.com or https://www.linkedin.com/in/chrisout/