Growth Marketing has been gaining all the buzz from marketers all over the world. But what does it mean? As the name suggests, it has something to do with “Growth” – this can specifically relate to whichever business metric you wish to grow!
If you are a small/medium business owner and often wonder about how to increase your customer base and achieve business growth quickly, this blog is for you.
Read on to know about Growth marketing, its core components, and a few helpful strategies that you can experiment with and execute for your business!
Growth marketing is a data-driven method of determining how to improve outcomes by running iterative tests.
It involves implementing data-driven strategies that boost the quality, quantity, and lifetime value of your marketing funnel.
A growth marketing strategy involves experimenting with multiple channels, inventive strategies, and continuous analysis on a periodical basis with an intense focus on every component of the business and every stage of the customer journey through the marketing funnel.
Traditional marketing entails using tried-and-true methods to attract clients, such as having sales, sending out email blasts, and using SEO with a focus on attracting customers.
Studies find that about 70-80% of users distrust and ignore sponsored search results on Search engines- which are usually part of the traditional marketing arsenal.
While this will provide you results, they will likely burn out with time because the same, old strategy is used without having heed to the changing interests of your clients.
Let us take India’s digital advertising market space as a case study. It has been growing with a CAGR of 33.5%! This highlights how almost every business has been increasing its spending on marketing and in such a competitive domain, it is difficult to stand out from the crowd.
This highlights the need for an intelligent and iterative strategy that focuses on every stage of the customer lifecycle rather than just the top of the marketing funnel. Personalization and targeted marketing are the future.
For instance, while traditional marketing would focus on sending monotonous emails to your email list, growth marketing would tell you how to optimize emails by personalizing and optimizing email subject lines by using the optimal EMV Index that would appeal to the customer. A study found that 58% of all revenue comes from segmented and targeted emails.
While each business may have different objectives for its growth marketing strategy, these are some of the overarching objectives.
To develop the right growth marketing strategy for your business, you need to identify the metrics on which it will be based. This could include customer retention rates, customer acquisition rates, conversion rates, and customer lifetime value.
Here, we have three of the most popular tactics used in growth marketing.
Also known as multivariate testing, this tactic involves sending out variations (“A”, “B”, “C”, etc.) of your content to consumers, to test what brings in more engagement. These customizations include graphics, design, copy, and more features that would capture the viewer’s attention.
The “B” test may bring more engagement from one segment, while “A” is more effective with another segment. It’s important to customize the A/B Test for each segment you cater to. Future marketing campaigns can then be optimized by using the findings of these tests.
Consumers have different preferences on how they want to receive information. Thus, it is important to use strategic channels to effectively market your audience. Some of the common channels are SMS, E-mails, push notifications, and in-app notifications,
Airship notes that push notifications have an opt-in rate of 60%, so marketers can use this to design their campaigns for push offers. Using information like this about consumers allows you to base future marketing campaigns around the right medium of communication.
A/B testing could also help marketers identify which mediums of promotion are the most effective. It is not enough to simply pick a single one. A holistic marketing plan should include multiple channels to maximize engagement. Contextual campaigns can help evaluate the past behaviors of consumers on each platform.
A customer’s experience can be looked at as a journey. It is a cycle in which the process of being a customer is repetitive. Marketers divide the lifecycle into three distinct stages: activation, nurture, and reactivation.
The activation stage focuses on gaining the attention of the consumers. Growth marketing, hence, uses onboarding, trials, welcome, and other introductory strategies to elicit interest in consumers. It builds familiarity and credibility between them and the company.
The nurture stage involves consumer engagement to strengthen their relationship with the company. This stage is characterized by cross-channel marketing. It brings various sales, promotions, updates, newsletters, and more to the consumer’s attention.
The final stage, reactivation, is about re-engagement. The aim is to drive customer retention and loyalty through customer engagement. The campaigns in this stage include post-purchase, abandonment, loyalty, and win-backs.
Each stage is vital in its own right. As the customer lifecycle progresses naturally at their individual speeds, growth marketers should accommodate the different wants exhibited at each stage through need-specific campaigns.
The backbone of Growth marketing is data.
Document and assess every marketing asset, activity, campaign, and consumer connection to determine the ROI of your digital marketing.
Set Specific, Measurable, Attainable, Relevant, and Time-Based (SMART) goals, so you can check your campaign activities to assess if you have met your KPIs benchmarks. Data tracking also gives you real-time, scientific knowledge about areas where you might want to optimize.
1. Create a Pre-Launch Email List
2. Leverage Referral Marketing
3. Social Media Growth Hacking
4. Employ a robust Content Marketing Strategy
5. Influencer Marketing
6. Drive Product marketing by offering exclusive deals to users
Growth marketing is fundamentally revolutionizing the norms of established growth channels altogether.
With a relentless pursuit to prioritize and achieve growth over anything else, it is a must-do strategy to elevate your business to new heights while ensuring long-term sustainability!
ROAS, an agile marketing agency, assists SMBs by developing and delivering a highly tailored, data-driven, individualized marketing strategy aligned to your customers’ needs to accelerate your company’s growth across a variety of channels, particularly those that matter most to your customers.
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