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How to drive word of mouth | Nilan Peiris (CPO of Wise)

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Sep 24, 2023

Guest

Nilan Peiris

Nilan Peiris, Chief Product Officer at Wise, shares his expertise in word-of-mouth marketing and product-led growth strategies. He provides tactical advice on boosting referrals and discusses how NPS surveys shaped Wise's growth. Nilan reveals a small change that tripled referrals and explains how Wise's innovative pricing strategies build customer loyalty. He emphasizes fostering a culture of experimentation and balancing data with intuition in product development, offering insights on enhancing user experiences to stimulate organic growth.

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INSIGHT

NPS and Word-of-Mouth Correlation

Wise discovered a strong correlation between Net Promoter Score (NPS) and word-of-mouth referrals.
Higher NPS scores led to exponentially more invites and conversions, making NPS a key growth metric.

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ADVICE

Be Radically Better

Focus on significantly outperforming competitors to drive word-of-mouth.
Wise found 8-10x cheaper pricing was the threshold for significant advocacy.

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ANECDOTE

Trust Through Recommendation

Wise initially struggled with building trust as a new money transfer service.
They found that recommendations from friends were a much stronger trust signal than any marketing material.

Get the Snipd Podcast app to discover more snips from this episode

Exploring WISE: Transforming Cross-Border Money Transfers

03:34 • 2min

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Catalyzing Growth Through Word-of-Mouth

05:37 • 20min

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Driving Word of Mouth through Pricing Strategy

25:50 • 15min

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Cultivating an Experimentation Culture

40:30 • 2min

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Balancing Data and Intuition in Product Development

42:19 • 21min

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Transforming Referral Marketing

01:03:22 • 6min

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Literature, Hiring, and Personal Growth

01:09:14 • 7min

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Crime and Punishment

Bibliophile Bibliophile Pro

Constance Black Garnett

FYODOR DOSTOEVSKY

Published in 1866, 'Crime and Punishment' is a psychological novel set in St. Petersburg, Russia. It revolves around Rodion Raskolnikov, an impoverished and intellectually gifted former student who formulates a theory that some individuals are morally justified in committing crimes for the greater good of society. Raskolnikov puts this theory to the test by murdering an old pawnbroker and her half-sister, leading to a profound exploration of his psychological and emotional struggles with guilt, paranoia, and the consequences of his actions. The novel delves into socio-economic disparities, moral dilemmas, and the psychology of criminals, making it a classic of Russian literature and existential thought[2][4][5].

Midnight's Children

Salman Rushdie

The novel tells the story of Saleem Sinai, who is born at the stroke of midnight on August 15, 1947, the moment of India's independence from British rule. Saleem's life is intricately linked with the history of India, and he possesses telepathic powers that allow him to communicate with other 'midnight children' born between 12 a.m. and 1 a.m. on that date. Each of these children has unique magical powers, and Saleem acts as a conduit to connect them. The story spans various historical events in India, including the partition, wars, and the Emergency declared by Indira Gandhi. It explores themes of identity, history, and the fragmented nature of a newly independent nation[1][3][4].

Brought to you by Pendo—The all-in-one platform for product-led companies building breakthrough digital experiences | Wix Studio—The web creation platform built for agencies | Masterworks—Invest in blue-chip art

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Nilan Peiris is Chief Product Officer at Wise, one of the fastest-growing (and profitable) tech companies in the world. Wise allows anyone to send money in more than 60 currencies to over 160 countries at low cost, and throughout its history has grown primarily through word of mouth. In today’s episode, we discuss:

• Tactical advice on driving word of mouth (WOM)

• Strategies for measuring WOM

• How NPS surveys helped Wise determine their growth and product strategy

• How Wise incentivizes teams to do the hard things

• The small change that generated a 3x increase in referrals

• How Wise structures its product and growth teams

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Find the full transcript at: https://www.lennysnewsletter.com/p/how-to-drive-word-of-mouth-nilan

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Where to find Nilan Peiris:

• Twitter/X: https://twitter.com/nilanp

• LinkedIn: https://www.linkedin.com/in/nilanpeiris/

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Where to find Lenny:

• Newsletter: https://www.lennysnewsletter.com

• Twitter/X: https://twitter.com/lennysan

• LinkedIn: https://www.linkedin.com/in/lennyrachitsky/

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In this episode, we cover:

(00:00) Nilan’s background

(03:27) A brief overview of Wise

(06:11) How word of mouth is measured

(07:56) Why Wise leaned into WOM

(10:21) Why Wise built their WOM motion using the NPS method

(16:13) How WOM solves trust problems

(18:55) How to get to 9 or 10 on the NPS scale

(20:51) Determining what will wow users

(21:31) Common missteps companies make when trying to drive WOM

(23:24) Using the “working backward” method at Airbnb

(25:45) How Wise is able to offer drastically lower money transfer fees

(27:51) The three costs associated with moving money

(32:02) Rational vs. irrational reasons behind recommendations

(34:11) Prioritizing customer happiness

(38:14) How Wise approaches experimentation

(46:11) Thoughts on performance reviews and general analysis

(48:06) How Wise provides a 10x better banking experience

(51:57) Advice on how to approach word-of-mouth marketing

(53:47) Building a culture of doing hard things

(55:59) The macrostructure of international banking and where Wise fits in

(57:54) How Wise solves for local regulations in their onboarding flow

(1:01:49) How Wise structures teams

(1:03:26) The small change that generated a 3x increase in referrals

(1:08:01) Nilan’s philanthropic endeavors

(1:09:13) Lightning round

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Referenced:

• Wise: https://wise.com/us/

• Henry Chen on LinkedIn: https://www.linkedin.com/in/henry-h-chen/

• About NPS: https://www.productboard.com/blog/the-power-of-nps-in-your-product-strategy/

• How Snow White helped Airbnb prove that storytelling is the most important skill in design: https://uxdesign.cc/how-airbnb-proved-that-storytelling-is-the-most-important-skill-in-design-15d04ac71039

• Seth Godin: This Is How You Create a Remarkable Product: https://www.businessinsider.com/seth-godin-this-is-how-you-create-a-remarkable-product-2012-10

• Discover the Spotify model: https://www.atlassian.com/agile/agile-at-scale/spotify

• Beam: https://beam.org/

• Affinity: https://affinityghana.com/

• Crime and Punishment: https://www.amazon.com/Crime-Punishment-Volokhonsky-Translation-Classics/dp/0679734503

• Midnight’s Children: https://www.amazon.com/Midnights-Children-Modern-Library-Novels/dp/0812976533

• Barbie: https://www.imdb.com/title/tt1517268/

• Arc browser: https://arc.net/

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Production and marketing by https://penname.co/. For inquiries about sponsoring the podcast, email podcast@lennyrachitsky.com.

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Lenny may be an investor in the companies discussed.

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