GrowthGems.co - Deepstash

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GrowthGems.co

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Thomas still likes to have ad groups (regardless of how they group keywords - meaning, LTV, etc.) “duplicated” so that he ends up with 3 ad groups targeting New Users LAT Off, Returning Users LAT off and All Users. It’s a more complex structure (and there is some audience overlap), but the conversion/ARPU/retention performance can be entirely different depending on the targeting. It also helps if/when deciding from where to pull back spend.

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The App Store transformed developer economics by increasing the market size beyond what anyone thought was possible. They did it by generating trust in consumers. In a wide open marketplace, that trust will probably be lost. If Apple doesn’t anticipate, regulations are going to be a sledge hammer not a scalpel.

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The throughput funnel for a team is a function of velocity, success rate and average impact:

  • Velocity: how many feature experiences are you putting out per engineer per week? Example at Airbnb: 1 test/engineer per week.
  • Success rate: for 100 experiments, how many are a statistically significant winner that you’re going to roll out? A good benchmark is a 20-30% success rate which means you should expect 70-80% of your test to be flat or negative.
  • Average Impact: if you have a 30% success rate, what’s the average impact over these?

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