All Things Growth and Marketing

Product-Led Growth

John Wanamaker, considered a pioneer in marketing back in the 1800s, once said, “Half the money I spend on advertising is wasted; the trouble is I don’t know which half.”

A lot has changed since then, and data modeling and digital channels make attribution much easier. But marketing is still a cost to every business, and it doesn’t always deliver the results you hoped for. 

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Social proof

Ever think you’d pay a stranger to stay in their home when they’re not there? Airbnb realized that convincing people of this would be challenging when they first started out. 

As a relatively unknown platform, it needed to gain the trust of users who were skeptical about staying in strangers’ homes. To overcome this, Airbnb emphasized user reviews and host ratings. As the reviews grew, so did the platform’s popularity, ultimately transforming it into a global giant. 

This is social proof in action.

At its core, social proof is the psychological phenomenon where people look to the actions and opinions of others to guide their own behavior, especially when unsure about a choice. It‘s a powerful tool for anyone looking to influence decisions, build trust, and grow their brand or business.

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Statistical power

Statistical significance is only part of deciding whether an A/B test is trustworthy. A test can fail to detect a real improvement simply because it does not have enough statistical power.

Statistical power is the probability that a test will detect an effect of a specified size when that effect genuinely exists. It is usually expressed as 1 – β, where β is the probability of a Type II error, or false negative.

For A/B testing, power should be considered before the test starts alongside sample size, the minimum effect you want to detect, the significance level, and the underlying conversion rate. An underpowered test increases the risk of missing an effect that actually matters.

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Should how fallacy

Get a chicken. Cook it until it’s perfectly done. Reduce the jus to a nice pan sauce. Then finish it with some butter until it has the right balance of flavors. Enjoy.

This is a useless recipe, but it’s not wrong. It assumes, however, that accurate advice on what you should do is as valuable as advice on how to do it—the “Should-How Fallacy.”

But being right doesn’t create value; empowering others to succeed does.

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