11 Aug. 2022 - Adam Ashton - Total Reads 4,133
What is Growth Hacking and why is it important?
Growth Hacking is a way of thinking, acting and implementing leverage to increase the growth of your company while seeking customer satisfaction to propose a suitable solution. It is a process that must be built in stages and it must be measurable as well as evaluated. While seeking customer satisfaction to propose the solution adapted to the customer’s needs. Unlike marketing which aims to make people come or make them buy, Growth Hacking, like marketing, makes the customer come but aims to make him come back.
Growth Hacking, therefore, is to it is thus to mix common sense, ingenuity, automation, and analysis of the results.
The Growth Hacker bases all its work on an optimization of the sales cycle (the AARRR Framework):
In short, it means:
1/ Maximize lead acquisition
It’s not a question of making every possible expenditure to capture leads, you need to optimize this lead generation. Either improve the effectiveness of the marketing tools deployed.
2/ To encourage the use of the product or to buy it
Indeed the conquest of the prospect is not all, it is now necessary to transform him into a customer.
To increase this transformation rate, we must optimize the conversion funnel making and make the first steps with the service or product as efficient and simple as possible.
This is demonstrated through the writing of guides or tutorials to help with use.
There can also be a system of automatic emails following the subscription to a product offer, as well as the analysis of basket abandonment, the detection of friction points in the customer path… The goal is that once a prospect is acquired, he must use the product. Since the cost of acquiring a prospect is expensive, the conversion rate must be optimized.
3/ Build customer loyalty and keep the customer active as quickly as possible
Inactive clients :
As companies become more aware of the importance of customer loyalty, a worrying phenomenon is developing: the increase in inactive customers. Indeed, the multiplication of competition makes consumers much more volatile in their purchasing behavior. Volatility is even more present in the digital sectors.
This shows the importance of retention in the development and growth of companies. From now on, keeping customers active is just as important as acquiring new customers.
To remedy this, for example, you need to identify them through segmentation, i.e. identify inactive customers in your CRM. This will allow you to surprise them with different e-mail campaigns.
For example, to encourage one of your customers to open your newsletters again, title your email “Unsubscribe”. For a reminder email, title it “It’s time to say goodbye (or not)”. Or: “Looks like it’s over between us…”.
How to build loyalty?
On average, it costs 5 to 10 times less to retain a customer than to win him/her.
You need to have a good product that meets a real need. However, this is not enough to retain them in the long term. The real secret of loyalty is never to take a customer for granted. You have to be able to continually surprise your customers by offering new things, and by being where you are not expected.
4/ Improve profitability and grow without having costs that increase proportionally
Once one of your marketing levers is successful, you need to start a continuous improvement process, that is to say, asking yourself the right questions:
– What can/Do I want to improve?
– What new tools can I use?
You must also measure the success of your actions via tracked URLs.
As you understand with Growth Hacking, to do growth hacking, you have to analyse the data. This is to better anticipate and minimise risks related to the company and it’s market to make faster and more relevant decisions. Moreover, thanks to the power of Data Analytics, companies can optimize and personalize the user experience, giving them a significant competitive advantage over companies that don’t use the potential of their data.
The goal is to have a solid customer knowledge and the will to constantly improve the user experience and the will to innovate, to break the code, to set no limits to win customers.
It will allow the company to better manage its activities and anticipate its future needs.
Marketing Hacks for Small Businesses
Let’s not forget that this technique comes at the base of small businesses, invented by Sean Ellis of DropBox who sold their products before creating it, followed by Hotmail and their exemplary communication (Include a message at the bottom of each email promoting their service for free). Then from AirBnB who used the fame of Craigslist to make themselves known.
So why is Growth Hacking essential for small businesses?
We will discuss 3 points:
Firstly, small companies, don’t always have a lot of means, marketing represents a big % of their expenses. They can’t afford to propose the same actions as big companies with much more budget. Many companies or start-ups don’t have the time and money to embark on an innovative marketing strategy. Growth hacking is, therefore, a way to compete with the big structures, as it costs next to nothing, however there are human costs for Growth Hacking.
Secondly, it allows small companies to see what the big companies are doing, indeed you would be surprised to see everything that can be found in the HTML code of a page.
Thirdly, small companies must start Growth Hacking from the beginning, having less data, they can more easily manage their analysis and acquire a qualitative approach for the future.
Thanks to growth marketing, the company can quickly ensure an optimal presence on the web, while also rapidly increasing its revenues and popularity.
However, the digital transition is forcing us to think differently. Having a digital presence and offering content makes it easier for leads to come in. With Growth Hacking, several solutions are possible to give your company a real boost.
More than a marketing strategy, Growth Hacking is a vision, a state of mind to have for the success and development of a company or start-up.
It should be noted that Growth Hacking is not only thought for SMEs with a smaller budget. It is a new way of thinking, giving companies competitiveness in an overloaded ecosystem, by putting the discussion at the center. It starts with progressive testing, to build measurable steps to bring users in. Every click, drag, and drop or entry is important.
Growth Hacking Techniques
At the acquisition stage of the conversion funnel, the objective is to generate traffic on your site by diversifying your communication.
At the activation stage, it is necessary to convert visitors to your site.
In the retention and revenue phase, you need to encourage users to return to your offer.
In the final referral phase, you need to encourage your consumers to become your ambassadors. Even to reach the stage of evangelization.
In conclusion, Growth Hacking is a way of thinking, acting, and implementing leverage to increase the growth of your company while seeking customer satisfaction to offer the solution adapted to the customer’s needs. A real asset for small companies, it’s thanks to many tools today essential to evolve on the web.
“Growth hacking is Experiment Driven Marketing” Sean Ellis.
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