Growth marketing involves interpreting product and marketing data to optimize towards a short-term business goal. This discipline often touches both product and marketing. At a high level, growth marketers look for patterns and use algorithms to achieve results. One of many traits used is the ability to interpret data and use that information to determine experiments that will improve key metrics.
There are 3 main pillars to growth
The goal is to boost sales and assume greater control over the market for goods relevant to your firm. By luring away more customers from your rivals, you control more of the target market. Whether it’s a fresh offer, competitive pricing, or a novel sales approach, there are many ways to capture market share. Ultimately, it’s important to get attention and make it into the consideration set.
The idea is to release new services for the exact same customer segment. It is important to have a variety of services to provide to potential customers. Different people want different things, so it’s important to have a variety of services or products to offer. This will make it more likely that people will find what they’re looking for and convert into customers.
One way to create a new service or product is to buy an existing one and blend it into your company. Another common way is to develop your own in-house. The goal here is to attract the largest group possible and have services that can reach everybody no matter the situation.
This is about distributing your online content to third parties to have it republished on independent sites. This growth hack has a direct impact on increasing SEO ranking. It increases website traffic, grows brand and product awareness, and dramatically improves a product’s conversion rate. Syndication allows you to reach a wide range of consumers and choose where you want your ads placed.
Additional Growth Strategies to Consider
Along with those three pillars, a much more personalized growth marketing strategy to reach a group of potential consumers is through traditional email marketing.
A personalized and engaging marketing effort with the intention of reaching relevant customers. Email marketing is a powerful tool because it allows you to directly reach and influence your customers. There is no gray area of the people you’re marketing to with this strategy. It is the most direct way to target the exact group you’re interested in marketing to and having the most optimal conversion rate.
Growth Marketing Metrics
Growth marketing metrics look at a businesses’ performance, particularly how it pertains to revenue and acquisition of new customers..
Revenue is the total generated amount of money in an annual or quarterly time frame. This should be the main objective of any Growth Marketing endeavor. Revenue is responsible for profit and opportunity for expansion, so without it, it is very hard for any kind of growth to take place.
Acquisition should be tracked through several methods. For example, customer acquisition cost is an essential piece of determining whether your marketing costs are really worth it. One formula is as follows: (total cost of sales + total cost of marketing) / # of new customers. It is very simple to see if your endeavors are working, or losing your company money.
For example if you earned $100,000 in sales and spent $50,000 in marketing campaigns to bring in 1,000 customers your CAC would be 150. Upon determining this number it is very easy to see whether it is worth spending 150 dollars to bring in one customer. If it is worth it you should scale your efforts, and if not you should reconsider shifting into better performing tactics.
Growth Marketing vs Performance Marketing: which one do you choose?
Growth marketing has the sole intention of driving metrics and influencing growth. As stated previously, the main intention is to increase a company’s revenue and acquisition of new customers
Performance marketing focuses on generating leads, clicks, sales, and website traffic. In contrast to growth marketing, performance aims to generate more potential in the future rather than immediate revenue or activation.
A growth agency will help your company grow quickly. A growth team is a good solution for an early company that doesn’t have much awareness. Performance Marketing can help take your company to the next level once your base is established.
So which marketing strategy best suits your company’s needs? There are a few factors to consider.
What is your company’s current state and your future goals?
Where do you currently sit in your lifecycle? Have you found product/market fit?
What can you afford to spend on a customer based on your operating model?
No matter your company’s state, goals, or current needs, there is always room for optimization. It is just a matter of choosing the path best for you. Everybody with a company has one common goal in mind. Growth.
The question to ask is how are you going to make your company the best version of itself.
Reach out to Synergage to help you answer these questions and for all your digital marketing needs. Our marketing team blends principles from brand, growth, and performance marketing to drive cost effective results. Through consumer insights and data-driven planning, our team will craft a long-term growth blueprint and customized marketing services tailored to your business.