What Digital Marketers Need to Know About Growth Marketing?
If your goal is to expand your business, you may have come across the term “growth hacking” being mentioned.
The term “growth hacking” does not involve actual hacking. Instead, it refers to the use of data-driven marketing to improve demand generation. Therefore, we believe that “growth marketing” would be a more fitting name.
What is Growth Marketing?
The process of Growth Marketing involves creating experiments to enhance the outcomes of a particular field. It is a technique that can be employed to attain a specific metric that needs to be increased.
creating and implementing strategies to increase sales, customer acquisition, and overall business growth. These teams typically consist of individuals with diverse backgrounds and skill sets, such as marketing, data analysis, and product development. They work closely with other departments within the company to identify opportunities for growth and develop targeted campaigns to reach their goals.
- Identifying specific areas for testing and enhancement.
- Developing and designing experiments to optimize the identified processes
- Conducting experiments to test hypothesized improvements
- Analyze the results and perform further experiments as needed
Growth marketers utilize a structured approach, called the scientific method, to plan and execute these trials.
In a company, growth marketing involves examining data more than creative techniques, making it a function that emphasizes analytics.
While experiments are aimed to improve processes for growth and scalability, growth marketers need to be comfortable with failure and plan for it. The goal of experiments is to enhance processes for expansion and scalability. It is important to have multiple solutions prepared to address an experiment from various perspectives, so that if one approach proves unsuccessful, the next step can be swiftly implemented.
How Can Growth Marketing Be Implemented?
Growth marketing has numerous applications within a business, encapsulated in the acronym AAARRR (also known as pirate metrics), covering Awareness, Acquisition, Activation, Revenue, Retention and Referral.
The process of creating awareness involves promoting your brand and its products to potential customers through various methods such as social media, content that is optimized for search engines, and offers aimed at people who may not yet be ready to make a purchase.
Marketers could try out different social media strategies to tackle this issue. They could conduct tests to determine the optimal rate at which to make posts that would drive blog traffic, or the type of content that generates the greatest engagement.
Acquiring new leads and customers is known as acquisition, which can be achieved through various methods such as gated content, chatbots, sign-ups for freemium services, or other techniques.
Slack obtains new users by using an email collection form on their main webpage as an illustration.
A marketer focused on growth may attempt to boost the quantity of completed forms by testing out various approaches, such as modifying the messaging used, changing the placement and coloring of buttons, or adjusting the layout of the page.
Activation refers to the process of encouraging customers to start utilizing their purchased product or service as soon and frequently as possible. Onboarding, being a part of this process, plays a crucial role.
Facebook discovered that if a user adds seven friends during the initial ten days of using the platform, they are highly likely to continue utilizing and participating on the site.
Growth marketers could explore methods to guarantee that friend finding and adding occurs, through conducting experiments on the process.
Revenue encompasses all the activities that generate income for a company, such as customers buying products, entering into service contracts or upgrading their existing products or services.
Growth-oriented marketers have the ability to tackle metrics associated with revenue by testing out various pricing strategies or modifying the way prices are presented on the pricing page. Additionally, they could analyze methods of upselling, such as sending messages to users when their subscription plan is nearing its allocation limit.
A growth-oriented marketer may analyze the way Drift presents their pricing information and test various methods of displaying the pricing tiers.
Retention refers to the act of ensuring that customers remain satisfied and happy with a business’s products or services.
Marketers aiming to enhance customer retention may explore ways of providing individualized assistance to customers or enhancing the usefulness of their product offerings.
An instance of this can be seen with Slack recognizing my preference for the “command K” shortcut rather than using the “jump to” search bar, and offering me the alternative of hiding the search bar.
Personalization enhances the users’ ability to derive more benefit from the product.
In an ideal scenario, individuals are extremely satisfied with the products or services they receive from your company, leading them to refer others without any prompting. However, marketers can also establish referral programs as a means of encouraging and motivating referrals.
Tesla provides free supercharger miles as a reward for referrals. A growth marketer can try out various promotional techniques or incentives related to the referral program in order to enhance outcomes.
How Do You Determine What Type of Experiment to Run?
If you possess a growth marketing team that is well-established, it is their job to locate areas for experimentation and carry out the said experiments.
If you do not have a complete group of growth marketers, other employees in your organization can contact your growth marketer with suggestions for areas to enhance.
When choosing experiments, consider the impact that experiment could have.
What will be the impact of your experiment on the number of individuals involved?
Is the step you are testing going to be accessible to people?
For example, If your chatbot’s welcome message is receiving plenty of attention and engagement, but users aren’t progressing beyond the third message, it would not be practical to begin testing on the fourth message. It’s crucial to make an impact earlier in the conversation to encourage users to continue engaging. Respond to that message initially.
Sufficiently large sample size. It is important to gather enough data for your experiment to yield definitive outcomes, so if the subject matter of your experiment has a low viewership, it may be necessary to conduct the experiment over an extended period of time in order to gather data from a sufficiently large sample size. A substantial audience size.
If you are searching for additional concepts or trials to contemplate, refer to this compilation of growth marketing pieces provided by MobileMonkey.
The practice of growth marketing ranges from small changes such as altering a button’s color to more intricate tasks such as overhauling the onboarding process.
Not every company is suitable for growth marketing. If your business is still in the early stages, you should first build a strong foundation before committing extensive resources to growth marketing.
If your primary objective is to scale your business or if your growth is increasing rapidly and you require better returns on investment, it may be beneficial to conduct growth marketing experiments in order to enhance the pirate metrics.