🎙️ Pod Shots

Today’s summary comes from a recent 20VC podcast with Nilan Peiris from Wise. Nilan and Harry discuss the concept of product marketing and the importance of delivering value to customers. Nilan shares his journey into the world of growth and product, highlighting the significance of looking at problems from a unique perspective. The conversation delves into the debate of using playbooks in product and growth strategies, emphasising the need for adaptable and reproducible models and more!

⚒️ What Growth Hacks Worked and What Did Not, for Wise

🎥Watch the full episode here

📆 Published: 2nd August, 2024

🕒 Estimated Reading Time: 2 minutes. Time saved: 50 minutes🔥

🚀 The Genesis of Growth: From Maths to Marketing

Nilan Peiris, Wise's CPO, has a background that many wouldn’t immediately connect with product growth: mathematics. But as he describes, the analytical mindset fostered by studying maths became a powerful tool in tackling product challenges from unique angles.

Takeaway: Approach problems with a fresh perspective. Sometimes, the best solutions come from looking at things differently than everyone else. This mindset can be a powerful growth hack in itself, enabling you to create solutions that outpace competitors.

📚 Playbooks: When to Use Them and When to Ditch Them

Playbooks are often seen as the golden rule in product development and marketing. But Nilan cautions against over-relying on them. In global markets, what works in one region might not translate to another due to cultural, regulatory, or financial differences.

Takeaway: Playbooks are useful for specific channels or content types, like Twitter or video marketing, but they are less effective as universal strategies. Use them as a guideline, but don’t be afraid to pivot or adapt when local nuances demand it.

🌐 The Early Days: Finding What Works

When Wise launched, its first customers trickled in from a TechCrunch article. However, acquiring users wasn’t a straightforward path. The team experimented with every channel available—from paid marketing to word-of-mouth strategies.

Takeaway: In the early stages of your product, experiment broadly and systematically. Track what works, but be prepared for a lot of trial and error. Growth isn’t linear; it’s a series of small, sometimes unpredictable wins.

🗣️ Leveraging Social Media: Amplifying Word of Mouth

Social media became a significant growth driver for Wise, particularly Facebook and later YouTube. Nilan highlights that the success of these channels lies in their ability to amplify word of mouth among users with similar needs—like international students or small business owners.

Takeaway: The best social media strategies amplify existing organic conversations. Target ads and content to users who are similar to your existing customer base. This alignment increases the likelihood of them sharing and advocating for your product.

📹 Content Strategy: On-Topic vs. Off-Topic

Wise’s content strategy focuses on creating “on-topic” content that directly serves user needs—like how to send money internationally. They also dive into “off-topic adjacent” content that’s still useful for their audience, helping them capture a broader user base.

Takeaway: Own your niche by becoming the go-to resource for your primary audience. Then, expand into adjacent areas that your users care about. This dual approach can establish your authority and draw in a wider audience.

📊 The Challenge of Above-the-Line Marketing

Wise struggled with above-the-line (ATL) marketing, such as TV ads, which didn’t yield the expected results. This type of brand advertising is challenging because it requires a broad appeal and often competes with well-funded competitors.

Takeaway: ATL marketing can be costly and hard to measure, making it less effective for niche products. Focus your efforts on more targeted, measurable channels unless your product has broad, mass-market appeal.

⚖️ Balancing Cost and Competition in Marketing

Nilan explains that Wise’s strategy revolves around reducing costs every quarter and passing those savings on to customers. This approach positions Wise as the lowest-cost provider in the market, a key factor in outpacing competitors who might cross-subsidise with other income streams.

Takeaway: A relentless focus on reducing costs while maintaining quality can give you a significant edge over competitors. This strategy is especially crucial in industries where price sensitivity is high.

🔄 The Importance of Continuous Experimentation

Despite the challenges with ATL marketing, Wise continues to test new approaches. Nilan emphasises the importance of revisiting assumptions and experimenting with different strategies to see if conditions have changed.

Takeaway: Never stop experimenting. Even when you’ve found a successful strategy, regularly test new ideas to ensure you’re not leaving growth opportunities on the table.

💸 Customer Acquisition Costs (CAC): The Double-Edged Sword

Nilan discusses how customer acquisition costs (CAC) fluctuate over time, often increasing as you saturate your core market and have to reach more niche audiences. Wise initially leaned heavily on word of mouth, but paid marketing also played a role in their growth, albeit with diminishing returns as competition grew.

Takeaway: Understand that CAC will evolve. It may rise as you scale, but the key is to balance this with long-term customer value (LTV) and continue optimising your acquisition channels.

🔍 Focus on the Product: Word of Mouth as the Ultimate Growth Driver

One of the biggest drivers of Wise’s growth has been word of mouth, but Peiris is clear that it only works when the product is significantly better than the alternatives. Wise’s pricing and speed were so much better than banks that users couldn’t help but talk about it.

Takeaway: For word of mouth to be a significant growth driver, your product needs to be an order of magnitude better than the competition. Focus on creating an experience that delights users so much that they feel compelled to share it.

🎯 Knowing When to Pivot or Persevere

Wise has killed products that didn’t meet their performance criteria, even when the initial investment was substantial. Nilan stresses the importance of being disciplined about where you allocate resources.

Takeaway: Be ruthless in evaluating your product’s performance. If it’s not paying off, consider reallocating resources to more promising areas. But also recognise when persistence might eventually pay off, especially if the potential upside is significant.

🏋️ Hiring for Growth: Lessons Learned

Nilan reflects on hiring mistakes, emphasising that while interviews can give you a sense of a candidate, they’re no substitute for real-world performance. He advocates for quick hires with clear expectations and the flexibility to pivot if things don’t work out.

Takeaway: Speed and flexibility are crucial in hiring. Don’t be afraid to make quick decisions, but ensure there’s a clear plan for evaluating and, if necessary, letting go of hires who aren’t delivering.

🤖 AI and the Future of Growth

As AI becomes more integrated into various functions, Nilan sees it as a tool to make processes faster and cheaper, particularly in operational areas. However, he notes that creativity still plays a significant role in growth strategies, as AI can’t yet replicate the impact of a uniquely creative campaign.

Takeaway: AI can enhance efficiency, but don’t overlook the importance of human creativity. The best growth strategies will likely combine AI-driven insights with innovative, human-led campaigns.

🧩 Final Thoughts: Continuous Learning and Adaptation

Nilan leaves us with a reminder that even seasoned leaders must stay open to new ideas and approaches. The landscape is constantly shifting, and what worked yesterday might not work tomorrow.

Takeaway: Stay curious and keep learning. The ability to adapt quickly and learn from both successes and failures is crucial in driving sustained growth.

Want to know more quickly? Just ask the episode below [web only]👇️🤯
or if you prefer, 🎥Watch the full episode here

📅Timestamps:

• [00:02:46] The power of being different.

• [00:06:17] Marketing channels and growth strategy.

• [00:09:37] Useful content for lead generation.

• [00:11:26] Acquiring a targeted audience.

• [00:15:12] Marketing strategies and challenges.

• [00:20:00] Product marketing and messaging.

• [00:22:44] When a product is working.

• [00:27:08] Long-term investment strategy.

• [00:29:07] Autonomous independent teams.

• [00:33:47] Brand confusion in marketing strategies.

• [00:37:18] Social pressure drives adoption.

• [00:41:32] Becoming profitable after fundraising.

• [00:43:38] Hiring mistakes and lessons.

• [00:48:44] Startup growth myths.

• [00:50:07] Role of creativity in growth.