What Does the Term “Growth Marketing” Really Mean?
Many business owners and marketers may find the term “growth marketing” superfluous.
Isn’t all marketing growth marketing? Marketing is what you do to develop a business, therefore isn’t all marketing growth marketing?
Too many professionals get this concept wrong and miss out on significant possibilities for advancement.
So, what is it exactly?
We’ll go through the following topics in this comprehensive guide on growth marketing:
The actual meaning of growth marketing and its advantages.
Growth marketing against traditional marketing, as well as growth hacking
How to achieve it using the AARRR framework’s five phases.
Strategies for growth marketing and key KPIs for each stage
Let’s get this party started.
What is growth marketing?
Let’s compare growth marketing to traditional marketing to better comprehend it.
Traditional marketing focuses on short-term advertising goals.
It is usually company-centric, with a heavy emphasis on acquisition, and the majority of the planning is opinion-based and assessed every year.
Growth marketing, on the other hand, is strategy-driven and focuses on long-term objectives.
Planning is based on evidence and focuses on acquisition, retention, cross-selling, and upselling.
Simple example of growth marketing
Assume your e-Commerce shop is losing money because clients only purchase one or two goods.
The order value is little, and the profit is insufficient to pay the acquisition costs.
In this case, you could use cross-selling and upselling to get the customer to buy more products
the first time, and engagement strategies to get them to buy more frequently
because you won’t have any acquisition costs to cover with the second or third sale
Especially if you use email marketing to communicate with your customers.
Growth marketing vs growth hacking
Growth hacking and growth marketing are not the same things.
hacking is concerned with short-term outcomes, whereas growth marketing is concerned with the broader picture.
Here’s a closer look at the distinctions between the two:
Growth hacking aims for quick growth, generally through acquisition,
whereas growth marketing aims for long-term growth through a set of full-funnel techniques.
Growth hacking uses data to experiment and fine-tune an outcome,
whereas growth marketing uses data to discover trends and fine-tune a plan.
Growth hacking entails hands-on techniques such as testing and tweaking,
whereas growth marketing entails automated and algorithmic procedures that must be adjusted regularly.
Growth hacking focuses on company pain points and goals, whereas growth marketing focuses on consumer pain points.
An example of growth hacking in action (Dropbox)
What’s amazing about growth hacking is that by experimenting and iterating, growth hackers can frequently create something unique in a short period, such as the Dropbox Referral Program.
The firm was having trouble recruiting new consumers, and sponsored advertisements were not working.
Their growth hack, a two-way referral scheme, resulted in a 60% increase in signups.
An example of growth hacking turned growth marketing (Slack)
Slack is the world’s fastest-growing B2B SaaS startup.
While this freemium communication tool was still in beta,
founder Stewart Butterfield leveraged significant media attention to urge companies to seek access and check it out,
resulting in 8,000 signups in 24 hours and 15,000 signups in two weeks.
That is a growth hack.
Slack used the feedback from these users to improve the product over the next six months.
Slack could then focus on more consistent and sustainable tactics for
recruiting new users and improving the platform’s experience to keep
them once the tool was introduced and Slack established its brand and upward growth trajectory.
And that is a growth indicator.
Benefits of a growth marketing strategy
Here are just a few of the numerous advantages of adopting a growth marketing mindset:
Better decisions: Growth marketing eliminates the concept of gut instinct (as with traditional marketing).
This data-driven approach to marketing reveals what works and what doesn’t, allowing you to make more informed decisions.
Improved brand perception: This concept focuses on understanding the customer journey, providing better experiences, and developing personal interactions with customers, eventually improving your reputation.
Elasticity: Growth marketing is a strategy that can be scaled.
Instead of mindlessly spending money on large campaigns, you may scale up or scale back your marketing activities based on your cash flow.
Unification: Cross-functional teamwork is required for growth marketing.
The marketing team participates in the same way as the product and sales teams, customer service, and analytics teams do.
Achieve revenue targets: Growth marketing focuses on agile revenue objectives to achieve long-term success.
Rather than shooting in the dark, growth marketing searches out prospective objectives and works strategically to achieve them.
Let’s go through each stage of the growth marketing funnel and its important KPIs now.
What is the AARRR framework?
AARRR is a well-known framework for growth marketing.
This structure, often known as the Pirate Funnel, separates your growth plans into five stages and provides metrics to track this trip.
The acquisition is the process of converting visitors into leads and consumers.
Activation: Create an aha moment in which customers discover the full worth of your company.
Retention is the process of keeping consumers coming back to buy or staying enrolled.
Customer referral: Convert consumers into brand champions.
Increase revenue by increasing client lifetime value.
Let’s utilize this framework to learn about the finest growth marketing techniques and KPIs.
Growth marketing strategy: AARRR acquisition stage
The acquisition stage of growth marketing is all about finding the proper leads and converting them into customers.
It’s the procedure outlined in the classic AIDA model that takes consumers from awareness to purchase.
The expense of acquiring new customers is continually rising.
If you want to expand your (bootstrapped) firm, you must develop a low-cost acquisition plan.
Define your budget for this stage and investigate different sources to develop a defined stage for customer acquisition.
To engage with their consumers, 51% of businesses employ at least eight channels.
Growth marketing strategies for acquisition
This element of growth marketing includes a variety of marketing tactics and channels; nevertheless,
below are a few examples.
Content marketing
Create a lead-generating content marketing plan that includes blog posts, ebooks, online courses, videos, and other materials that enlighten, educate, and interest your target audience.
This displays your knowledge, authenticates your company, fosters confidence among your target audience, and attracts visitors to your website, where you may convert them into leads and customers.
Create a community around your brand
Build a community around your specialty to provide value to your target audience.
CRM brand Pipedrive, for example, provides a knowledge portal devoted to salespeople with valuable information and the ability to exchange expertise with their colleagues.
Create a free tool
Always address the pain areas of your target audience.
Offering customers what they require will pique their interest in your goods or service.
List your products on Product Hunt
To increase your visibility, list your product on Product Hunt.
Optimize your listing with keywords, visually appealing material, timely launches, and upvote invitations.
Build an automated LinkedIn lead generation machine
By optimizing your company profile, establishing a hyper-engaged network, generating value-packed content, and engaging in targeted outreach, you can convert LinkedIn into a lead creation machine as a B2B brand.
You may even use video nurturing campaigns to develop a sales funnel.
Leverage YouTube ads
Ads on YouTube are both inexpensive and effective.
A high-quality promotional or explainer video, such as this one from Hello Fresh, may reach a big audience and stimulate attention.
Exit-intent popups
Exit-intent popups can be used to elicit some action from users.
AARRR metrics for acquisition stage
Because there are so many various acquisition tactics, your metrics will be determined by the platforms you utilize.
Analytics for each channel: PPC metrics, SEO metrics, social media metrics, email metrics, and more.
Cost per acquisition (CPA), often known as cost per action or cost per conversion, is an essential metric that measures how much it costs to obtain a lead.\
Conversion rate: Evaluate the conversion rate of various channels, such as your website, landing page, social media, and emails.
The overall number of conversions within a larger pool of interactions is compared in this statistic.
Growth marketing strategy:AARRR activation stage
When customers use your product or service, they understand the actual and unique value your company provides.
So it all comes down to creating the greatest customer experience possible and incorporating that “aha moment” into your client’s journey.
The fact that a consumer is five times more likely to buy from you again has pushed businesses to invest in customer experiences, which has fueled the popularity of growth marketing.
Growth marketing strategies for activation
So,What factors contribute to the greatest customer experience?
Personalization.
Customers who build tailored experiences for them account for 80% of all purchases.
Use personalization technology
Personalization technology improves the consumer experience by improving loyalty, increasing conversion rates, lowering cart abandonment, and raising average purchase value.
Ecommerce businesses may build a personalized purchasing experience based on the tastes of their customers, whilst B2B firms can use technologies like Hyperise to customize their website based on behaviours and context.
Another example of customization technology is dynamic LinkedIn outreach personalization, which allows you to engage prospects and boost conversion rates by sending tailored messages and pictures.
More strategies to attract and keep clients using B2B marketing automation may be found here.
Create hyper-personalized email campaigns
In addition to your website and videos, you can hyper-personalize your email campaigns to generate
more meaningful connections with your customers—from onboarding and welcome emails to feature announcement and feedback emails.
Use chatbots and video chats
One of the most essential components of the user experience is customer assistance.
By automating the sales and support processes, you may improve communication with prospects and customers.
Chatbots and video chat technologies are excellent choices for this.
Conversion rate optimization
Conversion rate optimization is critical throughout both the acquisition and activation stages.
You may uncover dropoff areas and identify strategies to patch them up through segmentation and
A/B testing by establishing a conversion funnel based on the activities you want your website visitors to perform.
Using a data-driven strategy, you can eliminate guessing about
what your leads and customers like and create the greatest experience possible on your website, social media profiles, emails, landing pages, and other channels.
Growth marketing strategy: AARRR revenue stage
So,The final step is concerned with the income that can be generated from all of your marketing activities.
It aims to increase client lifetime value by providing better experiences, improving average order value, and increasing retention rates.
The general rule of thumb for increasing revenue is to quadruple your client lifetime value vs acquisition expenses.
Growth marketing strategies for revenue
Many of the tactics for increasing client lifetime value are included in the earlier stages of the growth marketing framework.
But here are a few examples:
Focus on repeat customers
Examine your statistics and discover recurring consumers to improve their experience.
The more your brand loyalty, the more income you may earn.
Promote “eyecatcher” products
So,Promote entry-level items that complement other products.
As a result, you may boost signups and then offer more goods, thus increasing client income.
Hone your pricing strategy
You might try raising your prices.
If you have great consumer loyalty to your product, they are generally willing to pay a premium for it.
Conclusion
So,Growth marketing is a data-driven, strategy-based approach to attaining long-term success and increasing income.
Growth hacking aims to achieve short-term goals or address a business problem through fast testing and iteration to develop a solution or product.
It aims to gain market domination over time by employing a framework of well-designed tactics that leverage automation to adjust to consumers’ requirements and scale.
Better data-driven choices, enhanced brand perception, scalability, cross-functional cooperation, and increased revenue are all advantages of growth marketing.
AARRR is a common growth marketing strategy that combines acquisition, activation, retention, referral, and revenue.
Growth marketing techniques and KPIs apply to the whole customer lifecycle, not simply the campaigns used to acquire them.
You may contact Nummero since we are the best digital marketing agency in Bangalore.