The phrase “growth marketing” could appear unnecessary to many business owners and marketers. All marketing is growth marketing only since it is what you do to expand your firm.
Too many professionals misunderstand this term and lose out on the significant potential for advancement. So what is it exactly? We’re here to provide you with a thorough introduction to growth marketing.
Let’s get going.
What is Growth marketing?
First, let’s compare growth marketing to traditional marketing to understand it better.
Traditional marketing places a strong emphasis on momentary campaigns. Most of the planning is based on opinions and is generally company-centric, heavily acquisition-focused, and yearly assessed.
On the other hand, the strategy-based approach of growth marketing has long-term objectives in mind. Planning is based on empirical research and emphasizes customer acquisition, retention, cross-selling, and upselling.
A Simple growth marketing example
If customers only purchase one or two items, your e-commerce company may need to be more profitable. The profit doesn’t cover the acquisition costs because the order value is minimal.
With the second or third sale, you won’t have any acquisition costs to pay for. You might use cross-selling and upselling to encourage the customer to purchase more products the first time and engagement strategies to enable them to buy more frequently. This is especially true if you use email marketing to engage with your customers.
Growth hacking versus growth marketing
Growth hacking and growth marketing are not the same things. Growth marketing concentrates on the broader picture, whereas growth hacking focuses on immediate outcomes. Here is a more thorough explanation of how they differ:
Growth marketing uses various full-funnel methods to promote long-term growth, while growth hacking aims to gain rapid growth, typically through acquisition.
Growth marketing uses data to find patterns and improve a plan, whereas growth hacking uses it to experiment and fine-tune an output.
Furthermore, it uses automatic and algorithmic processes with sporadic tweaks, whereas growth hacking uses hands-on approaches with testing and tweaking.
Also, growth marketing is focused on customer pain points, whereas growth hacking is focused on business goals and pain issues. PowerPoint themes can help you showcase these statistics effortlessly.
Advantages of a growth marketing approach
You can obtain a lot of advantages by adopting a growth marketing mindset, including the following:
Better choices
It does away with the notion of a gut instinct (as with traditional marketing). This data-driven marketing strategy reveals what works and doesn’t so you can make more intelligent choices.
You can take this to the next level, by having all of your relevant data in one place, with the help of a reliable Salesforce data connector.
Enhanced brand perception
This philosophy strongly emphasizes comprehending the customer journey, providing superior experiences, and developing close relationships with customers to improve your reputation.
Elasticity
A scalable marketing technique is growth marketing. Instead of haphazardly investing in large campaigns, you may scale up or cut back your marketing efforts depending on your cash flow.
Unification
Cross-functional cooperation is necessary for growth marketing. The marketing staff participates just as much as the sales, customer service, and analytics teams.
Reach revenue goals
Growth marketing prioritizes agile aims to increase income with sustainable improvement. It seeks out and deliberately pursues promising targets rather than aiming in the dark.
Let’s now go over the growth marketing funnel’s many stages and critical metrics.
AARRR acquisition stage: growth marketing approach
Finding the ideal leads and converting them into clients is your objective in the acquisition stage of growth marketing. It’s the procedure covered by the standard AIDA model in which you lead customers from awareness to purchase.
The rising costs of acquiring customers are consistently rising. Create a cost-effective acquisition plan to grow your firm. Establish a spending plan for this phase and investigate various channels to establish a predetermined stage for customer acquisition. Fifty-one percent of businesses communicate with clients over eight channels.
Acquisition techniques for growth marketing
Here are a few examples of the marketing tactics and channels that fall under this branch of marketing.
1. Marketing with content
By using blog posts, ebooks, online courses, videos, and other content that informs, teaches and interests your audience, you may develop a lead-generating content marketing plan. Presentations can be made for the same with the motto of professional content marketing.
This showcases your subject matter expertise, validates your company, fosters audience trust, and directs traffic to your website, where you may convert visitors into leads and customers.
2. Establish a community centered on your brand
By fostering a community around your area of expertise, you may add value for your target audience. For instance, the CRM company Pipedrive includes a knowledge base with practical information and a way for salespeople to interact with one another.
3. Build a free tool
Always address the problems that your target audience has. Their interest in your product or service will inevitably rise if you provide them with something they need. Build something valuable, like the free tools offered by Hubspot that are suited for diverse user groups or WordStream’s free Google Ads Performance Grader.
4. On Product Hunt, list your products
Use Product Hunt to list your product and increase visibility. Use keywords, appealing and graphic material, well-timed launches, and upvote invitations to optimize your listing.
AARRR acquisition stage metrics
Since there are so many distinct acquisition techniques, the platforms you employ will determine your metrics.
Metric specific to channels
Metrics are specific to each channel, including PPC, SEO, social media, email, and more. Cost per acquisition (CPA), also known as cost per action or conversion, is a crucial metric because it measures how much it costs to obtain a lead.
Conversion rate
Evaluate your website’s landing page, social media, and email conversion rates across various channels. This measure contrasts the overall number of conversions within a larger pool of interactions.
Customer acquisition cost(CAC)
It is a metric to calculate the price associated with acquiring new clients. Unlike CPA, which is a campaign-level statistic, CAC is more of an all-encompassing business-level metric. It is calculated by dividing the entire cost of all your marketing activities (online and offline) by the total number of paying customers you have acquired over a specific time.
Recap guidelines for growth marketing
For expanding firms, growth marketing is more than simply a trendy term. It is a thoughtful strategy for growing your company steadily and sustainably. There’s been a lot covered, so let’s review:
It is a data-driven, strategy-based method for increasing revenue and establishing long-term success.
Growth hacking uses quick testing and iteration to create a product or service to meet short-term objectives or address a business problem.
Also, it is a framework of thoroughly thought-out tactics that leverage automation to customize to customers’ demands and scale to gain market domination over time.