How to stand out from the competition? How to propose a creative marketing strategy?
How to improve customer acquisition over the long term?
A new strategy has emerged in recent years: growth marketing.
Find out how to implement this new working method within your digital strategy.
The Emergence of Growth Marketing: Definition and Context
It is to remedy the constraints of growth hacking that Growth Marketing appeared. The latter involves a careful examination of the entire buying cycle and customer behaviors.
The information collected will then be used to improve your marketing and sales strategy in order to engage your prospects.
This new approach is based on classic marketing models and incorporates some innovative tips:
- the creation of an “inbound” blog focused on content creation
- A/B testing of website pages, CTAs, landing pages, etc
- automation campaigns,
- continuous optimization of natural referencing (SEO)
The technique is similar to inbound marketing, as it aims to attract prospects, engage them, and turn them into loyal customers.
The Common Matrix for Growth Marketing and Growth Hacking: AARRR
Like Growth hacking, growth marketing uses the AARRR matrix. Acquisition, Action, Retention, Referral, and Revenue constitute the user’s lifecycles.
This first step aims to attract new leads. To do this, good visibility is essential for your business. In this case, insist on your natural and paid referencing techniques as well as your inbound marketing strategy.
This second step is to convince your visitors to take the act of buying. To transform your prospects into users, encourage subscriptions to your newsletters, offer demos, white papers, etc. Invest in a designer and modern landing page rich in high added value content.
After you’ve acquired lots of leads, it’s time to retain them. To increase your retention rate, several techniques are available to you, including marketing automation. This digital technique boils down to automatically send emails. This digital contact is used to maintain a relationship with your users. Also, bet on a good content marketing strategy.
At this point, the number of users continues to increase. This is the right time to convert your customers into ambassadors. Your customers who are 100% satisfied with your products or services recommend you to their loved ones, in particular by word of mouth and via social networks. Suppose you are a web development company, so you could suggest some CRO (Conversion Rate Optimization) recommendations that can increase their website traffic.
The final stage in the user’s lifecycle is income. Each user engaged constitutes again. To multiply your sources of income, question, and improve your strategy. Carry out a study and make hypotheses before testing them. All your actions must be thought out in order to generate more profit.
Growth Hacking Vs Growth Marketing?
Deemed too old and not in line with new consumer expectations, the Marketing Mix has given way to Growth Hacking.
Growth hacking involves a certain mindset, while growth marketing is a long-term plan. Think of growth marketing as a broader concept for growing your audience by testing various channels, whereas growth hacking entails executing a specific tactic on a particular channel or making modifications on a product that grows that specific audience, usually on a small budget.
Growth hacking involves fast spurts of spontaneous growth (i.e. the rabbit) while growth marketing is slow and steady, in a holistic sense (i.e. the tortoise).
Growth marketing is different from growth hacking in the following ways:
How Did Growth Hacking Appear? The 4Ps (or Marketing Mix) Are 60 Years Old
The 1960s marked the period when Mix Marketing appeared. This marketing strategy was developed by Jerome McCarthy and Philip Kolter. It is a theory that dates from the post-war period, but which remains anchored at the heart of the techniques of current companies. Note, however, that the context of the time and the current context are totally opposed.
Remember that the Marketing Mix is made up of the 4Ps for Price, Product, Promotion, and Place. This method involves fixing the selling price. The product must stand out from the competition in the market. Place refers to the physical distribution channel used for promotion.
It is essential to underline the permanent change in consumer behavior. This is the reason why this approach is no longer valid in a marketing strategy. It can nevertheless serve as a basis on which to rely in order to establish a more effective and relevant technique.
Definition of Growth Hacking
Very popular with start-ups, Growth Hacking presents itself as the successor to Mix Marketing. These terms are defined as a digital marketing technique from the States. Created in 2010 by Sean Ellis, these words refer to the use of creative techniques while hijacking the traditional system in order to ensure the growth of the company, product, or service.
Considered the revolution of classic marketing, Growth Hacking aims to achieve its growth objective with a minimum of means. The growth hacker is like a marketing hacker. Innovative and creative, he uses digital tools such as social media, SEO, and press relations to achieve his goals.
The Limits of Growth Hacking Lead to the Emergence of a New Solution: Growth Marketing
Although innovative, Growth Hacking suffers from some limitations due to the appearance of the GDPR. Fortunately, growth marketing is the solution to this problem.
Growth Hacking is becoming more democratic (and therefore losing its ingenious side)
This ingenious solution has given rise to the appearance of types of growth hackers. It exists :
- The white growth hacker who limits himself to the use of legal techniques for growth purposes
- The Gray growth hacker who uses borderline techniques
- The black growth hacker who relies on completely illegal techniques
This option has now been popularized throughout the world. Unfortunately, the technique ended up falling victim to its success. Growth hacking has lost its value over the years.
GDPR limits the effectiveness of Growth Hacking
The techniques used in growth hacking are somewhat similar to spamming. Growth hackers indeed collect email addresses in order to send mass impersonal messages.
However, this strategy is no longer valid due to the entry into force of the GDPR (General Data Protection Regulation). Effective on May 25, 2018, this law governs the processing and circulation of personal data on the European continent.
In the context of compliance with this new law, growth hacking activity is now restricted. All actions relating to this practice require consent from the target person.
This regulation also made illegal one of the growth hacking techniques of retrieving the email address via LinkedIn for promotional purposes.
Some Examples of Companies With Growth Hacking Approaches
Many large companies are using this new technique for marketing purposes, but let’s focus on: Dropbox, Facebook, and Twitter.
The renowned Dropbox firm, a leader in cloud storage, has used this innovative method in order to multiply its growth. Its strategy is to increase the free spaces of their customers when they last rent their service from their loved one by e-mail.
Internet giant Facebook was first reserved for scholars from higher education institutions like Harvard, Columbia, and Yale. The firm then broadened its perspectives by inviting all Internet users from all over the world to register on the social network. Its success is now well established.
A leader in the world of Social media, Twitter draws its success from this innovative technique. As soon as it appeared on the market, the social network opted for a technique of account recommendations to be followed in order to increase the interactivity for each new account. The success of this technique is reflected by its notoriety on the market.
Growth hacking succeeds in the marketing mix, judged out of context with the current world. This strategy is based on digital marketing by hijacking the traditional system in order to maintain the growth of the company.
One of its techniques: spamming has however been made illegal due to the appearance of the new General Data Protection Regulation. It was then that growth marketing appeared to remedy this problem. These two marketing techniques make use of the AARRR matrix.
Utkarsh is the founder of Esite Bucket. Esite Bucket is a leading software company that provides the best web development solutions in countries like the USA and Canada.