Significance of Growth Marketing in Business
What exactly is Growth Marketing?
Marketing for growth is a data-driven technique that employs testing to determine the best way to increase results. For example, A/B testing can be used to determine which push notifications people prefer. It is learned if anything is working. If something fails to work, more testing are carried out.
Marketing has traditionally been kept separate from the product, and marketing departments have been kept separate from the rest of the company. Today, growth marketing is a part of product development. Growth marketers must develop deep and become engrossed in the most important growth KPIs.
Although the term “growth marketing” refers to a strategy focused simply on recruiting additional users, it encompasses much more.
Seeds for growth marketing must be planted during the customer discovery process. Customer discovery is exactly what it sounds like: determining what problem your product would best answer, also known as market fit or product. “No company plan can survive the first meeting with clients,” says entrepreneur and author Steve Blank.
Understanding who the client is will aid in the development of a growth marketing strategy that will most effectively achieve the company’s goals.
LinkedIn, for example, observed that users were very worried about the vanity metrics on their personal profiles. In order to optimise the network’s impact, LinkedIn was able to swiftly persuade members to share additional information, such as personal contacts.
It is the Goals of Growth Marketing
The main goals of marketing for growth are the same for every company:
- Retain your current clients.
- Prospect for new clients.
- Boost your revenue.
As a company grows, its growth methods become more cost-efficient as well as more effective in terms of conversion rate. What is the most effective strategy to achieve all of these marketing for development objectives?
Retention of Customers
One of the most important aims of growth marketing is to keep current clients.
Customers who are already satisfied must be considered in order to ensure that they remain loyal to your offering or product. It’s far easier to pitch an existing customer than a new one because repeat purchases are less troublesome.
Concentrate first on customer satisfaction and retention and then increase costs for customer acquisition.
If customers continue to do business with the same company and remain impressed by their experience, the brand’s loyalty is built. Brand loyalists could even boost sales through word-of-mouth marketing.
- Incentive programs
- User when they are onboarding
- Email triggers
After the client retention rate has improved and it is financially reasonable to seek out new consumers. Acquiring new consumers entails successfully engaging new customers as well as persuading them to purchase.
One of the most important aspects of customer acquisition is market visibility. What are people looking for when they want to solve their problems, and how does your solution fit into that search?
Knowing how your customer acquisition strategy relates to client retention might help you gauge your company’s long-term viability. What role do these two growth marketing objectives play in achieving the ultimate profit goal?
The areas to be tested
- Social media
- Paid search
- Trial periods for free
If your marketing growth strategy isn’t working, your revenue may increase while your profit declines. What could be the reason behind this?
The financials of the company model cannot improve if the cost of acquiring consumers exceeds the value of a customer’s lifetime value, regardless of how high the revenue growth may be.
A well-thought-out growth strategy can generate new revenue streams without putting undue demand on costs. Retention rates will be higher than churn if implemented appropriately, increasing the value of a customer’s life.
Growth Marketing vs. Traditional Marketing
In the same way that traditional marketing differs from online marketing, traditional marketing and growth marketing are two completely distinct things. Growth hacking is less about implementing traditional marketing strategies and more about developing a mental model for growth.
Marketing for expansion is a process that necessitates an open mind.
Consider Frank Zappa’s analogy “An airtight parachute is akin to a brain. It isn’t working without transparency.” 1 It’s not always simple to break out from your current situation, but perhaps we should concentrate on the “status WOW.”
Businesses with a growth mindset don’t squander money on marketing campaigns that haven’t shown to be effective. Before committing to a specific plan, growth marketers begin to dip into their marketing expenditures by taking an experimental approach to these investments.
Many of the strategies utilised in traditional marketing fail to demonstrate their efficacy. Physical advertising, such as a billboard or magazine advertisement, is difficult to analyse and evaluate in comparison to the click-through-rate of a Push notification.
This is why a growth marketing strategy requires more flexibility than a standard strategy.
Growth Marketing Process
Growth marketing is based upon the concept of iterative learning – the systematic optimization of processes and the incremental improvement in retention, acquisition and the lifetime value of customers who are paying. Growth marketers can use this method to find out which strategies are effective and, equally crucial, what doesn’t work.
What is the best way to master the art of growth marketing?
Define actionable metrics
When conducting tests It is crucial to incorporate a controlled section as a reference point to determine the real performance of the variables. The isolation from a controlled group will ensure that the results don’t get wrongly reported or misinterpreted.
Growth marketers should be aware of indicators that are relevant for their company and evaluate the effectiveness of the tests. While these metrics could differ dramatically based on the business, knowing the vanity metrics is crucial for any marketer.
These are fake indicators that create an appearance of sustained growth. As with the number of apps installed on mobile, they are not a reliable indicator of whether the app is achieving healthy retention, which is a crucial measurement.
Test A to Z
One of the most crucial aspects in growth marketing may be the ability to test. Small improvements made through experiments can result in massive improvements. Because of its simplicity, A/B test is one of the most popular methods of the kind of testing used in growth marketing.
Growth marketing is all about testing the various moving components and their effect upon performance measures. It may be surprising at the impact seemingly insignificant elements of marketing materials like the weight of fonts, background colours and the radius of the button could have on conversion rates. That’s why micro testing is among the most crucial tasks of marketers.
Implement improvements incrementally
After you’ve seen an improvement in the quality of your measures, it’s time to replicate what has worked. The strategies that performed well in tests, when tested with a representative sample of the entire population are likely to do very well when applied to a larger scale.
Scalability is the ability to grow, however most of the time, growth isn’t easily scalable. This is the reason it’s crucial to evaluate which strategies are effective prior to scaling these strategies. Yes, you’ll fail but you should improve as slow as is necessary to be able to sustainably win.
The Best Growth Marketing Practices
Growth marketing strategies might not be as appealing as the quick growth hacks nevertheless, they are essential for any business looking to sustain growth. Growth marketing is based on the best methods that encompass preparation, execution and revision.
Create the goals and objectives
While plans and projections might not always be accurate, the act of setting goals as well as objectives can inform the strategies to implement. According to Yogi Berra famously stated, “You’ve got to be extremely cautious if you don’t know where you’re going since you may not be able to get to where you want.”
If you’re tasked with expanding your company, it might be tempting to use all your marketing tools. But, it’s important to be cautious and prudent when you are in unfamiliar waters.
We need to develop perseverance and discipline. This is done by beginning with a small amount, proving a plan and then only moving forward after it has been proven to be effective.
Try out Diverse Strategies
This article could also be titled “How Growth Marketing is like investing,” because the best methods are like.
The most common theme in the investing sector is diversification of the portfolio which is also the best method for growth marketing. Don’t place all your eggs in one basket by using the same growth strategy.
Make sure you diversify your investments by distributing less of the total cost to different growth strategies for marketing, which results in the most efficient combination.
It’s crucial to be alert and ready to abandon any strategy that’s not working.
The sunk-cost fallacy is the habit of continuing following the same pattern regardless of the outcome, even if it proves negative, rather than altering the way of doing things. Be aware of when things aren’t working well and take the necessary steps to change your strategy.
Growth Marketing Toolbox
Growth marketers must be focused in their approach, and willing to implement their research findings. Like the relationship between contractors and their tools, the toolbox of growth marketing is essential for establishing a strong base for growth.
It isn’t easy to determine which strategies to employ and what metrics to monitor and the best tools to use to track them. It is good to know that CleverTap has developed a smart digital marketing system for mobile which is ideal for teams in growth marketing to incorporate into their mobile strategies.