fbpx
The Growth Experiment template is a discovery tool that helps you test growth ideas and optimize your app, platform or website for growth. It comes with a set of easy-to-use questions that can be used to identify the key performance indicators (KPIs) associated with your business goal.

The [Growth Experiment] Template: How to Test and Optimise for Growth

 

A Growth Experiment template helps you test growth ideas to optimise your app, platform or website for growth. It can save you a lot of time and uncertainty. In this article we’ll look at how to use one. We’ll see how to come up with ideas, rate them and test them at speed.

 

thumbnail of a template for ux and growth

What is a growth experiment?

 

A growth experiment is a systematic way of testing a growth channel. They’re important because they can save you time, effort, and money. To make sure that your experiments are connected with your business growth strategies, start by clarifying what you want to achieve and setting some small test goals.

Remember that most experiments will actually fail. Surprised? Well, the aim of this process is not to find a silver bullet. There’s none. Instead, you’ll discover what works and what doesn’t as fast as you can, without burning too many resources. As long as you learn from the experiments and continue to move forward, you’re on the right track.

 

Why conduct a growth experiment?

 

A growth experiment is the best way to test changes in your product or marketing without spending a lot of time and money. Growth experiments are cheap, quick, and easy ways to find out what works and what doesn’t.

You can run a growth experiment in several ways. Change one variable at a time and see how it affects your business. This way you don’t have to do any guess work and you don’t have to implement a full solution before knowing if it will work.

 

When should you run growth experiments?

 

The timing of your growth experiments will depend on having reached product/market fit (PMF) or not. Generally speaking, you’ll want to put a fast-paced process for experimentation into place once you’ve achieved product/market fit. Any growth hacking framework uses experiments as a way to achieve growth.

Before that, your goal is to find a viable channel to acquire new users. So you won’t focus much on growth and optimisation, but rather on feasibility. During this phase, your CPA will likely be greater than LTV (lifetime value).

A fast-paced experimentation process makes sense when you have reached PMF and you’re preparing to scale.

 

Use a template to start building your backlog and run your growth experiments

 

how to use a growth experiment template

 

Once you have PMF you want to think about ways to optimise your growth by improving each stage of the funnel.

If you’ve never done this before, my recommendation is that you start with a growth experiment template to save time. Starting a backlog for your growth experiments can be a daunting task. You want to make sure you have all the information you need, but don’t want it to become too complicated. That’s where a simple template comes in handy.

There are many different tools you can use. I’ve found Trello, Figma, Airtable, Miro to be very effective. You can even have a spreadsheet version in Excel or Google Sheet. But my personal favourite is Miro. The Miro template has everything I need and is easy to use. You find the link to the growth experiment template here.

 

How to test your business hypothesis with Miro Growth Experiment Template?

 

The Miro Growth Experiment Template provides general guidelines and structure for planning a test, but can be customised depending on the needs of your company. The template has different headings that correspond to different stages of the experiment, so it’s easy to follow along and make sure you’re covering all your bases.

miro growth experiment template

Source: Miro

 

Start by collecting a list of experiment ideas

 

The first step to run growth experiments is to come up with ideas. That’s when you create hypotheses for changes that will improve your business metrics. You can easily do it with your team in a brainstorming session.

The hypothesis is a statement about how you expect your change to impact key metrics. You should have clear in mind what business metric you’re working at. Is it growth of your customer base? Is it activation of newly acquired users? Once you have your ideas, check that they are in line with this goal.

For example, “improving our on-boarding to increase the activation of new users by 25%” will be your goal. Possible ideas are: changing the copy of the on-boarding flow to generate trust, adding a tutorial to explain key features, adding a FAQ to remove uncertainties. Be as specific as possible in order to make sure your experiment is well-defined.

Once you have defined your hypothesis, it’s time set up your experiment by defining your expected outcome!

 

Now define the expected outcome

 

Once you’ve completed the brainstorming phase, use a measurable metric to define the expected outcome of your experiment.

The metric should resonate with the stage of the funnel you want to optimise. This could be anything from an increase in the number of people who sign up for your product to more sales generated through your website.

The metric you use should be measurable and easy to understand. For example, if you are trying to increase the number of people who sign up for your product, use total number of new users as a metric. If you want to increase the activation rate, use the number of users who have completed a certain action in your product as a metric.

A growth experiment is not just an A/B test, it’s a way to test whether or not a change to your product will increase growth. A/B tests are just one type of experiment you can run, but there are many more.

 

Rate your ideas using PIE (Potential + Impact + Ease)

 

Once you have defined the goal of each experiment, it’s time to rank them. For this, one of the most used systems is PIE = Potential + Impact + Ease. The PIE Scoring framework is a great way to prioritise your ideas. This system sorts ideas by potential, importance, and ease. You can use this scoring system to help you build a flow of your growth experiment planning.

 

Potential: What’s the probability that it will work?

 

With the potential you rate the impact that your experiment will have on your business. What is the potential that this experiment has to critically change your business? In other words, this is a guesstimate on the likelihood of success.

 

Importance: What happens if this works?

 

How valuable is the change determined by the experiment? You want to prioritise changes that have a big impact on your key metrics. For example, if you’re tracking conversion, you want to start with the experiments that are likely to increase conversion the most.

 

Ease: How much (and what) resources will this require?

 

The ease of the experiment helps you rate how easy or resource-draining it is to set up the experiment and how quickly you can learn from it. E.g. will you just change the copy of some screens? Or will you be recruiting beta testers before you can start? This will impact the ease of execution.

 

pie framework

Once you have listed your ideas, assign each dimension a score, usually from 1 to 5. Then sum up all the scores per experiment. The result will give you a sense of the order of priority in which you may want to run your experiments. However the scores are just for planning purposes. The business decision on which experiment to run is yours.

Now that you know how to rate and rank your ideas, what you have is a growth marketing plan. It’s now time to put it into practice!

 

Next: Launch and Learn from the results

 

At this point you should have clear where to start with your experiments. It’s time to launch!

When it comes to growing a business, trying new things is the only way to find out what works and what doesn’t, and experimentation is key to increasing growth.

Collect data on the experiment, to be able to evaluate the results and learn from them. Measure the results of past experiments so that you know whether they were successful or not and use the data to inform your next experiments. It’s very important you keep a documentation of your experiments. You’ll be reviewing the data during your growth planning meeting with the rest of your team.

As you repeat this process over time, you will start to notice patterns in what brings growth. Also, your ability to estimate the experiment outcomes will increase.

 

How long do you need to complete the experiment?

 

You want to complete the experiment in about 2 to 3 weeks. For each sprint you will document the elements we mentioned above: What was the hypothesis? Did it work or not? Why do you think it worked/didn’t work? What can you learn from this experiment and how will you apply that knowledge.

 

Free growth hacking experiment templates (link)

 

The Growth Experiment framework is an essential tool to implement any growth hacking strategy. It works with growth marketing ideas as well as user experience features.

A good template to use as guidance for your experiments it’s the Miro’s growth experiment template and you can find it here.

If you use Figma, then you’ll love this template from the Figma community.

 

About Design Accelerator

 

At Design Accelerator we help companies boost their growth with data-driven UX. We usually work with SaaS, apps or platform businesses that want to improve their activation, engagement or revenue.

If you want to know more about our services, feel free to contact us here.

 

Read further:

Do you like this article? Don't miss the next one.

Continue reading: