Growth Hacking is a marketing strategy that grows rapidly by analyzing user data. Growth Hacking is also the reason why Instagram, Dropbox, Twitter, and Facebook have been exceptionally successful.
The exact definition of Growth Hacking is as follows.
“A business strategy that replaces traditional marketing techniques in a trackable, scalable way”
In other words, Growth Hacking refers to extracting the user’s pattern from the data and analyzing the collected data to rapidly grow the company with a creative marketing strategy.
Once Again, data is an important factor in Growth Hacking.
Growth Hacking is known for startups marketing initiatives, which are often challenging. Why?
Growth Hacking is aimed at making cost-effective decisions based on data and optimizing risk to achieve growth.
Therefore, if you start with a small amount of capital, such as start-up, you can not but aim for higher investment performance. So it is important that start-up is based on data-driven measurement and verification, even with very minor marketing strategies.
Existing marketers seek ambiguous concepts such as ‘branding’ and ‘mind sharing’. Growth hackers, on the other hand, grow with users of services based on indicators and Return On Investment(ROI).
As society and technology evolve, the importance of data grows. Growth hacking is a better approach for the future when the value of the data will become higher.
Silicon Valley technologist Aaron Ginn defined Growth Hacking as:
“Growth Hacking is a way of thinking rather than a tool.”
So what can be done to realize the “mindset” of Growth Hacking?
4 Steps to Running Growth Hacking
Ryan Holliday, author of the book “Growth Hacker Marketing: A Primer on the Future of PR, Marketing, and Advertising” describes four steps as a way to realize Growth Hacking’s mindset.
STEP 1: Setting the Product Market Fit Condition
Growth hackers invest a long time to achieve “Product Market Fit(PMF)”. PMF mean the perfect harmony between the product and the consumer. To ensure this, we continue to receive feedback from our users until they are in an optimal state. It is the process of finding change to improve through feedback.
STEP 2: Get the right audience
Growth Hacker does not make massive publicity at the time of new product launch. Instead, we focus on planning a strategic launch or production that is likely to appeal to key users. Not only will you generate revenue when you deliver the value of your product among your prospects, but you will try to reach users who will be part of the word of mouth effect. That is, The most important thing is, “How can I reach the most effective person to spend money?”
Step 3: Create word of mouth effect
Virality is what stimulates the desire to spread to people. Growth Hacking’s “Making Word of Mouth” should be worth sharing from the birth of the product. In addition, the product must include tools and campaigns that enable it. This is a different approach than expecting word-of-mouth effects after posting on Facebook.
STEP 4: Extend Maintenance and Optimization
The final step in Growth Hacking is to keep customers using the product without losing. In order to keep your customers, you need to invest in improving and optimizing your products. Ultimately, you should be creating a structure in which customers are forced to continue using the product. This is very different from traditional marketing strategies that try to increase sales.
According to Bain & Company, when the customer retention rate increased 5%, the company’s profitability increased by 30%. True Growth Hacker strives to maintain existing customers and optimize their products for customers in a stagnant growth environment.
This article referred to Ryan Holliday’s book Growth Hacker Marketing: A Primer on the Future of PR, Marketing, and Advertising.