Have you ever considered to try out Growth hacking tactics in your own business? Surprisingly, it can be easier than you think!
You can find plenty of tips and tricks on how to think as a true growth hacker, but how does this “transformation” from traditional marketing to growth hacking work? Which steps do you need to take in order to make it more efficient in the long term?
In this article, we want to share guidelines on how you can boost your performance and grow your business using simple growth hacking techniques.
What is Growth hacking and why do we need it?
Although growth hacking is a relatively new term, you can find plenty of articles and blogs on this topic. And that is not surprising since growth hackers are in major demand in today’s highly competitive market environment, especially in the world of startups.
First, let’s discuss what distinguishes growth hacking from traditional marketing?
Grow Hacking vs Digital Marketing: What is The Main Difference?
To put it simply, growth hacking is a concept or a type of strategy whose main focus is rapid growth. This approach implies trying out and testing different ideas, mainly focusing on the ones that can be scaled.
How can you identify a real growth hacker:
- Grow hackers do not care about budgets, costs, and conversions.
- All grow hacker cares about is “fast growth”
That is basically it.
Therefore this concept is especially popular among startups and small companies, who do not have huge budgets.
Thus, growth hackers have the same challenge as startups: they need to find fast but cheaper ways of promoting their business.
Easier said than done!
Let us now define the 5 main steps on how you can apply growth hacking in your own business!
“5 Easy Steps to Growth Hacking”
- Step: Make Sure That Your Product is Scalable
Growth hackers think about consistent and rapid growth. Most of the time the business success depends a lot on the ability of the product or service to be scalable. This is one of the main principles of success.
Such big corporations as Instagram, Uber, Facebook, Slack, Reddit, Twitter, are the great examples of scalable products and services. These applications are all scalable: The number of users for those applications continues growing every day, while the cost per user is very low. Thus, people from all over the world can download the application and start using it almost immediately.
- Step: Get Feedback as Soon as Possible
It is better to fail early than too late. Especially, it refers to software as a service (SaaS) companies, where the customer’s feedback is extremely important.
It is always better to show and test the raw product early on with a small client base, rather than to put a lot of effort into the production and setup before coming to the realization that nobody needs it.
Therefore, it is important to first understand your customers and their needs. Regular business reviews and feedbacks from your customers base will help you with that.
In order to help you with the understanding of your customers need, we have put together the main key points. These can be summarized under: “How to make sure that you know what your potential customer really wants”:
- Start with the problem, not with the solution
- Get your feedback as soon as you have an idea (first draft)
- Get feedback as soon as you have the prototype
- Organize regular business reviews with your clients
- Build a relationship with your clients
If you invest time and make it right from the very beginning, it will help you to save plenty of time and money in the end.
- Step: Narrow Your Focus: Create a Profile of an Ideal User
The main pitfall that most startups or companies usually face is that they are trying to target everyone on this planet.
Although this attempt is ambitious, it is completely inefficient and risky.
To be able to reach everyone you first need to target those 100 people who represent the main target audience.
Only after those people have liked your product, it is possible to reach the masses.
After it is clear who you want to target, you need to make sure that your solution can solve their problems.
Make your ideal customer profile as detailed as possible. Ask yourself following questions:
- Who is your ideal user profile: age, gender,
- Where does your ideal customer live?
- What are his/her hobbies?
- Where can you find them?
- What are their interests? And etc.
The more precise the profile is the easier it will be to get the awareness.
- Step: Encourage Experimenting (Use AAARRR model)
Experimenting is great, however, it should be systemized.
For this purpose, you can apply the Pirate metrics or AAARRR model.
AAARRR model is a well-known tool that can be useful not only for growth hackers but also for digital marketers. The model allows you to track and analyze your customer journey.
It consists of 6 stages:
Let people know about your brand! After your ideal target audience is defined the next step will be to start increasing the awareness by appearing on the channels where your audience is most likely to be active. The more creative you are the more chances you have to get awareness. Be open to innovative ideas!
Ask yourself: How successful is my current marketing campaign? How many impressions and click-through rates do I have (CTR)? What is the source of traffic? Regular analyses are the key to success at this stage. If the way you do it doesn’t work then change it. Don’t hesitate to try out different tactics and channels. At this stage, you need to encourage experimenting.
What is the average time people spend on my landing page? Do they like the content? What is their feedback about my service? At this stage, you need to improve your performance by exploring better audience “activation”. It’s a perfect time for A/B testing, asking for feedback and working on it.
How many customers return to my website after the initial experience of the product? Is my content engaging? At this stage, you need to activate your retention marketing with such channels as email, SMS, and onboarding.
What is the conversion rate? How many visitors of my website convert to paying customers? If not that many, then work on your unique value proposition (UVP). Get as much feedback as you can, and improve your product.
Last but not least, the stage at which your customers are starting to recommend your service or product to others. Basically, at this stage, you acquire new hot leads from your existing customer database. This tactic is one of the most powerful ones.
The important questions to ask at this stage are: Do I have referrals? If not, then you need to investigate what is the reason: Do the existing customers like the product? Are there any drawbacks? Once again: Get more feedback and be honest with your customers.
5 Step: Explore the tools
The main goal for growth hackers is not only to grow the business fast but also to do it with minimal expenses!
Basically, for growth hackers, it is important to lower cost per acquisition (CPA) as much as possible. That is why instead of using the traditional way of promoting the products with Google ads, growth hackers are digging deeper by exploring the free tools which are available to everyone. Most of the time you can find plenty of tools that provide a free trial and have affordable packages.
Thus, instead of using paid ads, start exploring and try out free (or almost free) tools such as Click to Tweet, Highlight and Share, SessionCam, Nimble, Hello Bar, CrazyEgg, SimilarWeb, and many others.
These were 5 easy steps on how you can grow your business by implementing a growth hacking approach
Also published on Medium.