Growth hacking is a broad term used to define strategies that focus exclusively on growing a business. It is often used in the universe of early stage startups, which need rapid and broad growth in a short time with small budgets. The goal of Growth Hacking strategies is usually to reach as many users or clients as possible while spending as little as possible.
The term “growth hacking” was created by Sean Ellis, founder and CEO of GrowthHackers, in 2010.
A Growth Hacker is a professional who uses creative and cost-effective strategies to help companies acquire and retain customers.
Sometimes Growth Hackers are also called Growth Marketers, but the truth is that they are not just marketers. Anyone involved with a product or service, including product managers and engineers, can be a Growth Hacker.
The concept behind Growth Hacking is the idea of finding a growth “gap” in the market and creating focused strategies to make the most of it and extend its reach.
By identifying this “gap” or “opportunity” tactics are developed with the goal of achieving rapid results for business growth. Again, not only the marketing industry can do this. A professional of any background can identify this market opportunity and make the company make the most of it according to the strategy created.
It is through this set of characteristics, which define what Growth Hacking is, that it is closely associated with startups.
What does a Growth Hacker do? They analyse and test to see what works in a growth strategy and eliminate what isn’t working. A Growth Hacker knows:
For each company, you need to find out:
Many startups use Dave McClure’s funnel as a recipe for growth.
The fundamental steps of this funnel, which is widely spread as a methodology among Growth Hackers, are:
The purpose of applying this acquisition method is:
Design your product and test it to make sure people want it and are willing to pay for it – this will help you gather data to understand your key personas and can drive marketing tactics accordingly.
Update your product at regular intervals and receive customer feedback to always know if you’re on the right track.
At the same time, market your product to drive continued growth and track the success of those results.
A / B testing and other conversion optimization techniques are crucial for effective hacking.
Growth Hacking Strategies
Most Growth Hacking strategies fall into three main areas:
Depending on the tactics used, content marketing can be an inexpensive way to advertise your product.
Growth Hacking can also use social advertising and pay per click advertising (CPC) to promote their business.
Some well-known examples of successful campaigns that have applied the concept of Growth Hacking include:
Uber, which rewards existing users for inviting new users with free rides;
Hotmail, which when it was launched, attached an automatic line to each email encouraging people to sign up for a new account;
AirBnB, which used Craigslist to find and market to people looking for affordable accommodation.
Now that you understand what Growth Hacking is and how it can be applied to your business as part of its rapid growth and development, you can count on Cavaon to drive the results of the marketing actions you use.
We can help you and your team develop strategies that increase conversion of your actions and strengthen your relationship with your customers and potential customers more efficiently. Contact our team and learn how we can help your business.