Growth hacking is defined as “the non-technical side of running growth experiments”. It’s the process of trial and error until you find a marketing channel that works. This article will show how growth hacking can be applied to help grow your company.
WHAT IS GROWTH HACKING?
The term “growth hacking” was first used in 2013 by Sean Ellis who defined it as a “specific set of marketing techniques that are executed with the sole purpose of driving awareness, traffic, leads, and sales of a product”.
Growth hacking is characterized by low-cost or no-cost strategies that see an exponential return on investment. According to the creator himself, the most correct definition of the term is experiment-oriented marketing. Therefore, the purpose is to find new strategies to achieve success. In short, Growth Hacking involves developing new strategies focused on rapid growth for a business entity.
For example: Obtain email addresses from people who visit your website by offering them something free. Another one would be promoting products on social media channels for reach but not necessarily engagement such as Facebook Ads (check this PPC Massive Pack). Growth Hacking can be thought of as the concept of identifying “triggers” that, when activated, promote growth. But it’s not such a simple practice. It is similar to the concept of leveraging modern, scientific thinking.
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HOW IMPORTANT IS GROWTH HACKING?
The business landscape is changing and companies are finding themselves adapting to the changes. One of the main challenges is finding new ways to grow and expand their market share, or they risk becoming irrelevant. Growth hacking has proven to be an effective means for companies to do this because it’s a way for them to create more traffic, leads, or customers for their company.
It not only provides companies with new customers but also helps them keep existing customers coming back for more. It’s many businesses, the process of adapting to this inevitable growth is often met with challenges. The most common is the lack of knowledge of what exactly growth hacking entails.
The growth hacking process is complex, and it requires a lot of careful planning and attention to detail. The best way to get started with growth hacking is to start with the end goal in mind. Most people think about growth hacking as a way to increase the number of customers, but the end goal is to increase the amount of revenue your business generates.
The growth of your business is directly linked to the way you generate leads or customers for your business.
GROWTH HACKING VS DIGITAL MARKETING
There is a lot of discussion about what growth hacking and digital marketing are, and how they’re different.
Growth hacking, in its simplest form, is the process of rapid experimentation across marketing channels with the goal of achieving hyper-growth.
Digital marketing is all about leveraging technology to create successful campaigns. Both require analytics and creativity, but the skill set required for each varies. Understanding the differences between growth hacking and digital marketing can help businesses develop an effective strategy for success.
PROFILE OF A GROWTH HACKER
Growth hackers are obsessed with the customer and understand that the customer is the company’s only asset. They understand that the customer is the most important part of the company, and it’s the job of the growth hacker to ensure that the customer is happy.
The best growth hackers have an analytical mindset that is more focused on proving their hypothesis than anything else. They understand how and why people consume and share information and make decisions, showcasing a data drive and at the same time strong work ethic.
To become a growth hacker you need to have:
- A growth hacker mindset. This means you have to be able to think and act in different ways from a product management mindset.
- A background in product management. You need to know the ins and outs of product management and your products overall strategy
- A track record of success. You need to have had successes in returning on your investments in marketing and acquiring customers.
- A desire to learn more. You have to be committed to learning more about growth. There are a lot of things you need to learn, including a lot of psychology and marketing.
TYPES OF GROWTH HACKING
There is no one size fits approach to growth hacking and the principles and techniques that work for one business may not work for another. However, there are a few fundamentals that can be applied to every business.
Growth hacking is a tactical marketing technique, which provides a shortcut to achieving rapid growth. In order to do this, you have to focus on increasing your number of customers.
It is usually done through employing various methods that include the following:
1) Reducing customer acquisition cost – Achieved by deploying creative channels that are both scalable and low-cost.
2) Maximizing lifetime value – This can be achieved by maximizing customer lifetime value and minimizing churn rate.
3) Improving churn – This is achieved by improving the customer experience and creating a differentiated offering. It also includes reducing the cost of acquiring a new customer.
These three key points may not suit every business. However, understanding how businesses can achieve growth hacking success is key to unlocking the potential of your business.
HOW TO START WITH GROWTH HACKING?
It’s inevitable. As a business, you will grow. For many businesses, the process of adapting to this growth is overwhelming and can cause stress to build up. But there is no need to worry.
Growth hacking is an innovative way to manage and grow your company, and it doesn’t have to be complicated or boring.
I will give you a 6 quick step-by-step process for starting your own growth hacking initiative.
1. The Funnel of Growth Hacking
It’s inspired by the sales funnel. It was created by Dave McClure, who called it the “pirate funnel” because, in English, the initials form AARRR. Thus, a sound like a pirate interjection.
The stages of the funnel are acquisition, which brings together practices to attract and win a customer; activation, important when the objective is to deliver the first good experience to the customer; retention, stage in which customers are satisfied and continue to use the product; revenue, when customers generate revenue for the company and referrals when they call friends and acquaintances to also become customers.
2. Generating Ideas
This is the initial stage of the Growth Hacking process, with the aim of leveraging the growth of the Growth Funnel metrics.
Possible sources of ideas: successful case research, benchmarking of reference companies, websites, forums, and Linkedin groups that have a connection with the enterprise.
3. Selection of ideas
Ideas linked to the company’s main objectives have priority. Therefore, ranking each one of them, based on their needs, is essential.
4. Modeling of experiments
It is at this stage that the idea becomes a hypothesis. In order to model the experiment that will prove the hypothesis, it is essential to show clarity regarding the growth barrier that one wants to overcome, and the trigger that will be explored. Check this great list of potential tactics that work every time.
5. Conducting the experiments
It is the step of putting the experiment into practice. To apply the idea the way it was planned.
6. Results analysis
Analyzing the results is the next step. It is essential to know if the hypothesis really was confirmed.
Know that the application of Growth Hacking is essential to leverage your business. If you want to have positive results, investing in the entire process is the key to success. You will surely reap rewards.
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Wrapping up
In today’s business world, it seems everyone is trying to get ahead of the competition. One strategy that can give businesses an edge over their competitors is growth hacking. This technique focuses on utilizing analytics, A/B testing, and viral content to help with traffic generation for businesses’ sites.
By implementing these strategies, they will have a better chance at success and growth.
