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Breaking the rules of growth: Why Shopify bans KPIs, optimizes for churn, and prioritizes intuition Analytics Table

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About Breaking the rules of growth: Why Shopify bans KPIs, optimizes for churn, and prioritizes intuition

Explore Breaking the rules of growth: Why Shopify bans KPIs, optimizes for churn, and prioritizes intuition with 29,620 views, 461 likes, and 22 comments. Experience the impact of this video content that has captured audience attention.

Archie Abrams is the VP of Product and Head of Growth at Shopify, where he leads a 600+ person growth org across product, design, engineering, data, ops, and growth marketing. Shopify powers over 10% of e-commerce in the United States, with $235 billion in GMV in 2023 (roughly the size of Finland’s economy). He previously led Consumer product and growth at Lyft and was at Udemy for 8 years as SVP of Product having joined the company when it was 10 people. In our conversation, we discuss: • Why Shopify optimizes for churn • Why the core product team doesn’t use metrics-based goals • Why they keep multi-year experiment holdouts • How they structure their growth team • The benefits of not having a CMO • Lessons learned about integrating sales into a product-led growth model • The power of discounting as a growth lever • Much more — Brought to you by: • Explo—Embed customer-facing analytics in your product: https://explo.co/lenny • Dovetail—The customer insights hub for product teams: https://www.dovetail.com/lenny Find the transcript at: https://www.lennysnewsletter.com/p/shopifys-growth-archie-abrams Where to find Archie Abrams: • X: https://x.com/archieabrams • LinkedIn: https://www.linkedin.com/in/archie-abrams-b6aa8b6/ Where to find Lenny: • Newsletter: https://www.lennysnewsletter.com • X: https://twitter.com/lennysan • LinkedIn: https://www.linkedin.com/in/lennyrachitsky/ In this episode, we cover: (00:00) Archie’s background (02:30) Shopify’s impressive growth (06:17) Shopify’s unique approach to churn and retention (08:43) Monetization model and success metrics (11:08) Long-term experimentation and metrics (23:00) Examples of big wins that Archie’s team has shipped (26:42) Monetary friction (27:14) Metrics (29:47) Shopify’s growth team structure (33:03) Goal setting and forecasting (37:10) Examples of long-term results within Shopify (41:36) Shipping neutral experiments (42:05) Building a hundred-year company (48:04) Why Shopify doesn’t use KPIs (51:30) Shopify’s “Get shit done” framework (54:30) Cross-team collaboration (58:48) The importance of an opinionated founder (01:01:12) Growth and sales integration (01:06:42) Shopify’s marketing structure (01:08:49) Insights on discounting from Udemy (01:11:09) Lightning round Referenced: • Shopify: https://www.shopify.com/ • Tobias LĂźtke on LinkedIn: https://www.linkedin.com/in/tobiaslutke • Gross Merchandise Value: Calculation and Best Practices: https://www.shopify.com/retail/gross-merchandise-value • Brian Chesky’s new playbook: https://www.lennysnewsletter.com/p/brian-cheskys-contrarian-approach • Glen Coates on LinkedIn: https://www.linkedin.com/in/glcoates • Harley Finkelstein on LinkedIn: https://www.linkedin.com/in/harleyf • Udemy: https://www.udemy.com/ • Scientific Advertising: https://www.amazon.com/Scientific-Advertising-Original-Claude-Hopkins/dp/1640954252 • Four-Minute Mile: https://www.amazon.com/Four-Minute-Mile-Roger-Bannister/dp/1493038753/ • The Sopranos on HBO: https://www.hbo.com/the-sopranos • Suno: https://suno.com/ Production and marketing by https://penname.co/. For inquiries about sponsoring the podcast, email [email protected]. Lenny may be an investor in the companies discussed.

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