Lenny's Podcast: Product | Growth | Career

Developing a growth model + marketplace growth strategy | Dan Hockenmaier (Faire, Thumbtack, Reforge)

207 snips
Oct 9, 2022
Dan Hockenmaier, an expert in marketplace strategy and growth, shares his insights from leadership roles at Thumbtack and Faire. He discusses the importance of constructing growth models based on first principles, with a focus on customer retention as a crucial metric. The conversation dives into the complexities of managing marketplaces, balancing supply and demand, and the evolution of vertical marketplaces. Dan also highlights strategies for startups, emphasizing the significance of understanding customer dynamics to drive sustainable growth.
Ask episode
AI Snips
Chapters
Transcript
Episode notes
INSIGHT

Growth Model Definition

  • A growth model is an analytical representation of how a business grows, often built in a spreadsheet.
  • It helps understand the business, assess opportunities, and is not a forecasting tool.
ADVICE

Growth Model Building Blocks

  • Model acquisition, retention, and monetization for SaaS businesses. Consider transaction volume, order value, and unit economics for transactional businesses.
INSIGHT

Retention Sensitivity

  • Growth is more sensitive to customer retention than intuition suggests. Small gains in retention are more valuable than large changes elsewhere.
Get the Snipd Podcast app to discover more snips from this episode
Get the app