Growth Marketing in 2021: Navigating Apple's Attribution Changes

The Importance of Measuring Growth for Startups

A common principle asserts that what gets measured gets managed, and for startup founders, tracking growth is paramount. Sustainable growth fuels revenue generation, attracts investment, enhances reputation, and enables scalability – all critical components of business success.

However, accurately measuring growth is increasingly intricate. Recent updates to attribution models, specifically within iOS 14 and iOS 15, alongside broader privacy-focused industry trends, necessitate a reevaluation of growth analytics strategies.

Insights from TechCrunch Disrupt 2021

During TechCrunch Disrupt 2021’s Extra Crunch event, a panel of leading growth specialists shared their expertise. The panel included Jenifer Ho, VP of Marketing at Elation Health; Shoji Ueki, Head of Marketing and Analytics at Point; and Nik Sharma, founder of Sharma Brands, a well-respected DTC growth marketing firm and investment group.

Key Discussion Points

The conversation centered on several crucial areas for startups navigating the evolving landscape of growth marketing.

Attribution Challenges: The panel addressed the current difficulties in attribution modeling and offered guidance on how startups should construct their own frameworks.
Early Customer Acquisition: Strategies for securing initial customers were explored, alongside determining the optimal timing for initiating growth marketing efforts.
Metric Selection: The experts discussed the importance of choosing the most relevant metrics to effectively gauge a company’s progress.

Understanding these areas is vital for companies aiming to thrive in a competitive market. Selecting the correct metrics allows for informed decision-making and optimized resource allocation.

The discussion highlighted the need for adaptability and a data-driven approach to growth in the face of ongoing changes to data privacy and tracking technologies.

Understanding Growth Marketing: Constructing an Attribution Model

The discussion began with an in-depth exploration of attribution, a crucial subject for growth marketers currently. Attribution fundamentally involves linking marketing investments across platforms such as Google and Facebook to concrete purchasing behaviors exhibited by customers.

For instance, if a user views an Instagram advertisement for shovels and subsequently makes a shovel purchase within 48 hours, attribution models are engineered to record this sequence of events.

Given the often complex nature of purchasing decisions for both businesses and individual consumers, establishing a robust attribution framework is vital for a startup's prosperity. Ueki stressed that simplicity is the key principle when designing such a model.

Ho highlighted that, at Elation Health, aligning attribution with overarching company objectives is paramount.

Sharma, concentrating on consumer-facing strategies, pointed out that measuring incrementality serves as a method to navigate the challenges presented by Apple’s updated privacy protocols.

Ho concurred with the emphasis on simplicity, asserting that even straightforward models can yield substantial benefits throughout a startup’s development.

I inquired about the process Elation Health undertook to establish its model, and Ho detailed their approach.

Ueki explained that Point adopted a last-touch attribution approach, recognizing that consumers often deliberate for months, or even longer, before finalizing a mortgage commitment. Consequently, a first-touch model proved less relevant in their particular scenario.

The overarching takeaway is to initially implement a highly simplified model, and potentially introduce greater complexity incrementally over time. However, it’s essential to prevent overly intricate systems from obscuring the fundamental understanding of critical touchpoints within a customer’s journey.

Acquiring Initial Customers

The discussion then shifted to strategies for startups to attract their first customers and the point at which growth marketing becomes essential for scaling operations.

Ho pointed out that significant initial growth can often be achieved organically.

Ueki suggested that while proactive effort in securing early adopters is acceptable, it’s crucial to rapidly identify and focus on the most impactful areas for growth initiatives.

Consistent with his earlier statements on attribution, Ueki reiterated the importance of maintaining simplicity in approach.

Sharma, however, highlighted that simply acquiring early customers isn't enough; defining a clear brand message is a prerequisite.

Companies risk becoming mere product vendors if they neglect building customer relationships. No business aspires to operate solely as a provider of commodities.

Establishing customer-centric relationships is paramount in today’s privacy-conscious environment.
Five key elements are necessary to secure your initial customer base.
The success or failure of a startup can hinge on its first ten customers.

Identifying Key Performance Indicators for Business Success

Growth marketers are presented with a wide array of metrics to evaluate their strategies. Determining which metrics are truly significant, and achieving internal alignment on Objectives and Key Results (OKRs), can be challenging. This issue frequently becomes more complex as organizations expand and their growth and leadership teams grow.

Ho stressed the importance of clear and open communication.

Ueki concurred, adding that aligning objectives with the finance department is crucial.

Sharma pointed out that similar challenges arise in businesses focused on consumer products, and effective trade-off management is essential for founders.

Marketers should prepare to create custom metrics in anticipation of iOS 15 updates.
Four strategies for utilizing Return on Ad Spend (ROAS) to significantly increase lead generation.
Insights from Unmuted founder Max van den Ingh regarding achievements that extend beyond traditional metrics.

The complete discussion transcript is available for review here.