As a recently founded startup, growth at Courage + Stone is handled by a skeletal team. Of its two members, one is focused on advertising, while the other leads brand strategy and analytics. Their content and creative efforts are supported by a partner agency.
Part of the growth team’s success is due to the versatile skillsets of its members. As James Kim explains, “When you're small, you're nimble and you have cross-functional teams. The ability to pivot allows for smaller companies to evolve quite quickly.”
Optimization is critical to how Courage + Stone grows. Here’s a high-level look at their process for making iterative improvements.
1. Develop a hypothesis
The growth process for Courage + Stone starts with a hypothesis. As an agile team, they continually monitor their data to discover which areas of the business can be optimized. This includes performance with key demographics, revenue growth, or customer LTV. After identifying an opportunity for growth, their team constructs an educated guess about the business impact that will result from a certain action.
2. Run an experiment
With the hypothesis locked, it’s time to run an experiment. For example, say the hypothesis was that retargeting individuals visiting a certain page on the website will result in higher conversion. The team then deploys said experiment as quickly as possible to prove or disprove their original hypothesis. At this point, their team can evaluate the results. Using the previous example, they would measure the change in conversion rate based on ad retargeting against their hypothesis.
3. Revise and implement changes
If the initial hypothesis is incorrect, the growth team will revise their strategy using data from the experiment. Applying these insights, they can optimize to achieve the desired outcome. As James Kim describes, the data generated from experimentation are “puzzle pieces”, but it’s ultimately up to his team to put it all together into a cohesive strategy. This data-driven approach empowers Courage + Stone to experiment at scale, driving real business growth in the process.
Secrets to Success
One of Courage + Stone’s key advantages as a small business is its agility. Whether testing new beverage products, or expanding into different markets, the growth team’s secret is their ability to move swiftly. By moving and completing growth “cycles” faster than competitors, they also retain a competitive edge that drives success. James Kim relates that, “More cycles means more data. More data means more clues for you to figure out exactly what's working.“
The ability to understand and act on data is the other basic ingredient for success at Courage + Stone. With good data, their team can more effectively innovate, develop new products, and execute strategies for growth. There are some obstacles to success, however. As James Kim notes, one of the more difficult aspects involved with data is stitching it together in a cohesive manner.
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