This is how the popular savings app Dreams creates digital growth

Joni Lindgren interview Rasmus Savander, who talks about how he works with growth at Dreams. Rasmus gives tips to business executives who want to start working with growth as a way of working.

Among other things, he talks about how Dreams has changed its organization so that all employees are included in product development. Also, they work in cross-functional teams to work faster. We discuss how we view growth and that many people believe there are shortcuts to achieving growth. You have to listen to this!

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Show notes

01:06 Joni introduces Rasmus Savander, and he tells how Dreams makes money with the revenue share model.

03:43 We learn more about Dream’s business model. Rasmus describes the business model as a “unit economic game” and that it is a simple formula for calculating what revenue share Dreams receive.

06:18 Rasmus gives us insights about Dreams North Star Metric and what parameters are included and measured in it.

07:54 Rasmus describes the growth model as having a bucket where water leaks out, where growth closes the holes. He gives several examples of what the holes in the bucket can be.

09:08 The Growth model in practice is to visualize this bucket. To find the leakage in the bucket and how to clog the holes. Rasmus talks about different tactics for how to follow up and visualize this for his organization.

12:50 We find out which growth model Dreams have used to attract more users and which target group is their channel audience fit.

14:58 Dream solves a problem for their users, Rasmus describes his favorite “Aha-moment” in the use of the app.

15:17 How do Dreams get their users to continue using their product? Rasmus talks about the different “Growth schools” and what part of the growth staircase you should focus on.

17:38 Rasmus tells about how Dreams is currently changing the organization to include all employees in product development and that they work with cross-functional teams to work faster.

19:11 Rasmus explains to us why he thinks a product owner or product manager should be “head of growth” or “VP of growth,” or what you want to call it, in organizations.

20:20 Rasmus says that he “strongly dislikes” that there is a belief that shortcuts can be taken, that there is a “silver bullet” to achieve results. That there would be checklists that you check off, and then their growth will explode.

22:21 “I think growth is a perverse search for a system for growth,” Rasmus explains.

24:05 Rasmus gives concrete tips to business executives who want to start working with growth as a way of working.


Wordlist

“Aha moment”: When your potential customer realizes how fantastic your product or service is.

Content Marketing: The production of content that your users find valuable. Content such as videos, blog posts, white papers, case studies, e-books, and gives it away at no cost to build awareness of your brand and drive traffic to your channels.

Cost per Customer (CPC): Calculate CPC by dividing all marketing costs used to acquire more customers, with the number of customers acquired during the period the money was spent.

Cost per Install (CPI): Use explicitly for mobile application campaigns. In a CPI campaign, you advertise through digital ads in different media to get more people to install an application. You only pay when someone has installed the app.

Dormant Users: A user who does not log in or use any of their accounts.

Growth Hacker: A person who works to create growth. The person works cross-functionally and involves all departments in an organization, from sales, marketing, product development, IT to management, in their work.

Growth Hacking: A method for creating growth where you continuously test, analyze, and improve. Nor are you afraid to try new approaches to improve and refine your work continually.

Inbound Marketing: A method for attracting more customers through digital channels. Inbound marketing has the customer’s needs at the center, unlike outbound marketing, where companies express their message without considering whether the recipient is interested or not.

Influencer Marketing: Marketing through individuals who have a high impact on their target group, which hopefully aligns with the client’s target group. Influencer marketing is used to increase the brand’s reach and increase consumer trust in the brand.

Conversion: Conversion is the activity you want users to complete when they visit your site or your store, such as buying a product or downloading a guide.

North Star Metric: A North Star Metric is the core value, such as weekly active users or the number of downloads per day, that you use to ensure that your tactics and strategies meet your business goals.

Positive Friction: Do not make interactions better for helping users achieve their goals faster and more effectively, but for making users aware of their choices and actions. It can be used for various purposes, for example, to prevent errors (like if you want to delete your account) or make it more challenging to skip reminders (by forcing the user to press a physical button as an example).

Product Market Fit (PMF): Product Market Fit is if there is a market for a product. It means, for example, that your customers would be very disappointed if they could no longer use your product or service and that they would like to recommend it to their friends. Focusing on marketing before you reach PMF is like burning money.

Revenue Share: That all stakeholders share revenue from the sale of the product or service in which they are collaborating.

Sales Funnel: A sales funnel that represents the various steps a potential customer goes through on the road to becoming a loyal customer.

Unit Economic: A way of calculating the profit or loss the organization makes on each customer.

User Onboarding: The process each new visitor or user goes through to use an app or service for the first time.