If you’re implementing any growth hacking strategy, the goal is to get as many clients and leads as possible on a shoestring budget.
For this reason, growth hacking is a preferred strategy for early-stage startups and larger organizations.
To significantly increase your growth rate, you must understand your market, pay attention to what your customers say, and find innovative ways to use your available resources. So, let’s explore what growth hacking entails, how it can help you, and some strategies you can leverage.
What is Growth Hacking?
There’s actually some confusion around what growth hacking is and how it’s different from traditional marketing.
As we know, conventional marketing concentrates on short-term, campaign-oriented objectives with a marketing campaign plan. It focuses mostly on selling the product or service to your target audience.
Although there’s an overlap between traditional marketing and growth hacking, the latter focuses more on finding the most effective ways to grow a business. Attracting more users is the primary objective of any growth hacking strategy—a process known as “scaling” by the community.
Through growth hacking, startups can discover new growth channels with flexibility and creativity. So they can find out what really connects with their target market and the best ways to contact them.
How Can Growth Hacking Can Help Your Business Succeed at Any Stage
As the name suggests, “growth hacking” focuses on the growth of any business. Other than that, there are a few other reasons why you should consider leveraging these strategies:
- Is more agile and allows you to leverage new untouched opportunities (experimentation): You can more readily cope with changing trends and markets when you scale effective strategies for marketing quickly. The planning you do will increase with the level of growth hacking you undertake.
- Helps grow your brand awareness faster: To improve your reputation, a growth hacking strategy enables you to gain insight into the customer journey, provide better experiences, and build personal ties with the consumer.
- Brings in a new perspective/ new ideas: Finding a plan that works for you requires trial and error. Since tactics are constantly evolving, it all comes down to determining which marketing strategies, when applied consistently, yield the best outcomes for reaching sales targets. You can discover new business models due to the numerous tests involved.
- Allows for huge growth with minimal resources (minimal cost): Using standard marketing techniques to scale a business can be very costly. However, growth hacking can assist a business to grow in ways that are economically viable by using data analysis, innovation, and creativity.
If you’re sold on why you should focus on a growth-hacking mindset, then it’s time to understand how you can set up your business for success.
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Developing a Growth Hacking Strategy Framework: What You’ll Need
Growth hacking is ultimately about growth, whether it be in leads, financial resources, or any other aspect that will support the expansion of your company.
Your company can grow most efficiently with the right framework in place. So, the first step in achieving your goals is to create one.
ICE Framework
Sean Ellis, the CEO of GrowthHackers.com and one of the pioneers of the growth hacking movement, is credited with developing the ICE framework.
Business owners can use this scoring methodology to make more informed decisions about which projects to embark on and how to allocate resources.
After evaluating a potential feature or project, you give each of the acronym’s components: impact, confidence, and ease, a score ranging from 1 to 10.
Before scoring, it’s important to understand what the acronym means:
- Impact: What is the extent to which a project will affect your main objectives?
- Confidence: How certain are you that the project will have any influence on your growth?
- Ease: How challenging will it be for the project to be finished?
Once you’ve put a score for each feature, use the following formula to multiply the scores as a whole: Impact* Confidence* Ease. The higher your ICE score, the more important your feature or project is.
Take a look at this example that explains how you should be using the framework:
Having said that, due to the subjective nature of the grading, especially for more recent growth teams where it may be difficult to assess an idea’s prospective impact or level of confidence due to a lack of historical data.
AARRR Framework
One of the most widely used frameworks for startups and SaaS organizations looking to gauge growth and success is the AARRR framework. It is also known as the Pirate Framework, Pirate Funnel or Pirate Metrics because of the way it sounds like a pirate.
The acronym stands for acquisition, activation, retention, referral, and revenue, which are five user-behavior indicators that product-led growth companies should be monitoring.
- Acquisition: Where are the customers coming from?
- Activation: How can we make our customers take the actions we want them to?
- Retention: Are you able to keep the active users engaged?
- Referral: Will your users recommend your products to others?
- Revenue: Are your users willing to pay for your product?
Once you’ve decided what information you want to gather for each of these AARRR framework levels, you must implement tools and procedures for gathering and evaluating data.
As you review the AARRR framework, conduct a sufficient number of A/B tests to identify areas for enhanced user involvement.
Regardless of which framework you’ve chosen, it’s important to understand that creating a growth hacking strategy is primarily about experimenting. So, take your time and test out which framework works best for you.
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5 Growth Hacking Strategy Essentials from Start-Up to Scale-Up
The growth hacking process is simple. Implementing these strategies is all about seizing the moment and gaining an early advantage. So, how can your business succeed by implementing a growth hacking strategy?
1. Leverage your Existing Client Base and Make Them Buy More Often
With a start-up, it’s likely that you’re always trying to reach out to new customers. Remember: old is gold too!
Building a loyal customer base through customer retention increases profitability, repeat business, and customer lifetime value (CLTV). You can do this by developing a loyalty program with discounts, benefits, or other incentives, offering first-rate customer service, including testimonials or social proof, establishing a community or network that fosters involvement and advocacy, and more.
Consistent buyers are more likely to recommend your goods and services to their friends and family, which will help you obtain free advertising. This implies that current clients are more likely to pay for premium services using techniques for upselling.
2. Make Them Subscribe to Your Email First
Only a minority of social media posts reach your potential customers. In fact, email is still considered the channel with the best ROI to improve B2B and B2C sales. So, you should concentrate on growing your email list to attract possible clients ahead of time. However, don’t merely compile a list of email addresses and do nothing more. Try to send relevant and important content to your customers.
You can curate their content to offer a personalized experience or even offer incentives, such as a coupon code or discounts, for signing up for your email list.
Look at an example of how you can personalize your emails:
There are plenty of other ways to learn how to increase email outreach here.
3. Introduce Irresistible Deals to Add New Clients
We’re constantly exposed to marketing promotions, such as discounts, flash deals, and large red “50% off sale” signs.
Therefore, it makes perfect sense that our minds automatically turn to discounting when we want to offer clients a good deal. Once your customers come through the door, it’s much easier to upsell other goods/ services by offering them an upgrade or a better version by building that trust within them.
4. Bring In More Customers Through Referral Marketing
Most B2B buyers state word-of-mouth is the most influential factor in purchasing decisions.
This proves that you can find a potential goldmine of fresh leads from your existing clientele. All you have to do is deliver a positive and more customer-centric experience then use the internet and your clientele to share the word.
Since getting new clients via recommendations doesn’t cost too much, it helps keep expenses down. Additionally, you have a higher retention rate and a higher lifetime value when you gain consumers through referrals.
A great example of this would be Dropbox’s referral program. To encourage customers to spread the news and share their product, they offered free extra storage space for each person they recommended to the platform via email. Thanks to this tactic, their consumer base grew by more than 60% in a matter of months, which fueled their rapid expansion. And it still works to this day!
5. FOMO (Fear of Missing Out)
When humans sense a constraint or scarcity, they are naturally compelled to take action. This psychological trigger is rooted in our most basic desires, which translates into FOMO (fear of missing out), and motivates customers to act immediately.
Think about Facebook. In the beginning, it was a Harvard-only network. As more people learned of it, it started expanding operations, becoming the social media giant it is today. Even Slack was an invite-only platform, which used the same FOMO tactic to scale up.
As soon as you tell your users they can’t access some important features without subscribing or upgrading, they’re more likely to want the paid version.
6. Leverage Automation (Especially Marketing Automation)
We all know, “Time is money” and that’s why, an increasing number of businesses are using automation to make their processes run more smoothly. By automating processes, you may free up resources to concentrate on the essential elements of your company.
You can use email automation platforms to automatically publish emails, social media posts, or other content to your audience. You can also implement chatbots or automated messaging systems that can promptly and effectively answer client inquiries to enhance your customer service.
To make the most of your marketing automation, consider integrating lead automation techniques that not only streamline your workflows but also enhance the efficiency of your lead management.
By scoring your leads, you can prioritize your engagement based on the potential of each lead, ensuring that your team focuses its efforts on the most promising prospects.
Because technology is always improving, now is more than ever the right time to use automation to give your business a competitive advantage.
Overall, you can see that there is no one winning growth hacking strategy that guarantees effective results. You need to use various strategies to help you scale up your business in many ways. Be it lead automation or providing a superior customer experience, there’s no shortage of strategies to choose from.
Wrapping Up the Growth Hacking Strategy Essentials
Despite its apparent simplicity, growth hacking requires the appropriate resources to be successful. If you have access to automation resources, your growth hacking plan can be tailored to your requirements. Moreover, tools available for gathering data are important as well since they provide you with business insights.
Another thing to remember when developing your growth hacking strategy is that experimentation is your friend. What works today can easily change tomorrow, so you must learn how to adapt as well.
You should also let the data drive your judgments, be flexible, and be willing to test new tactics.
Growth Hackers is one of the leading growth hacking agencies helping businesses from all over the world grow. There is no fluff with Growth Hackers. We help entrepreneurs and business owners seize success with our growth hacking strategy essentials, increase their productivity, generate qualified leads, optimize their conversion rate, gather and analyze data analytics, acquire and retain users and increase sales. We go further than brand awareness and exposure. We make sure that the strategies we implement move the needle so your business grow, strive and succeed. If you too want your business to reach new heights, contact Growth Hackers today so we can discuss about your brand and create a custom growth plan for you. You’re just one click away to skyrocket your business.
