In the second part of the series, we will take a closer look at what growth hacking actually is from a strategic perspective as well as in terms of implementation, how corresponding teams look like, and what “test, test, test” has to do with it.
Growth Hacking means to approach marketing problems in a purely result-oriented and proactive way. It is the considered instrument for (digitally oriented!) start-ups in particular, because unlike established marketers and companies, there is only one focus: rapid growth, leads (i.e. potential prospects), and the highest possible quality of business contacts. This cannot be achieved with individual, uncoordinated measures. A holistic approach is needed here: creativity in product marketing, linked with user experience, which must always be optimized, is only the basis. In the sense of an interdisciplinary approach, additional tasks such as in-depth web analyses as well as web development and automation are also involved in this system.
Growth – at any price
As difficult as science finds it to clearly define and classify Growth Hacking, the field of activity of growth hackers is clear: Every decision made is aimed solely at growth and especially on digital channels. Instead of thinking about out-of-home advertising that shows interested people the way to a physical store, growth hackers think about how to draw attention to web stores via search engine marketing. Instead of thinking about what a state-of-the-art hotel should look like nowadays, the focus is on a platform that turns private living space into a “bedroom” that can be booked flexibly. In other words, the online infrastructure of a start-up is completely examined: Every (digital) brand touchpoint is checked for opportunities that are still unused. Subsequently, these channels are exploited as cost-effectively as possible.
Testing, testing, and then: testing
Even if it is debatable whether a growth hacker also has to be able to program, it is crucial that someone in the team can do it. Ideally, there is at least a three-person team with two people being either front-end developers (for dynamic applications and conceptualizing user-friendly user interfaces and designs for websites and e-shops) or back-end developers (data processing in the background). These teams start by defining what has to be measured at what intervals. It is all about event-based thinking and testing. What exactly should grow? Why? What is urgent, what less so? Do we need new customers for now, or at least as many interactions and referrals as possible? All of these measures need to be tested, tested, and tested again in sequence. If there is no success, new actions must be taken quickly, because in most cases, start-ups that act too slowly simply disappear from the market.
The power of KPIs
Testing can only be done based on clearly defined goals and objectives. It is always about “analytics”. This is the be-all and end-all of growth hacking processes because they are incorruptible. A TV image spot, which nobody is interested in, can perhaps still be talked up, but this cannot be done if sales results of a Google Ads campaign are devasting. The good thing about this principle is that successes can be repeated or extended, while mistakes can be avoided. The KPIs commonly used are the following in particular: Leads or leads close rate, monthly goals per channel, call-to-actions and click through rates, the Customer Satisfaction Rate, the Customer Retention Rate, and the Customer Lifetime Value (although there are many different models and approaches here). The KPIs show that Growth Hacking is not a “gee-whiz” tactic that is used for a few weeks and then it is business as usual. Growth Hacking is a marathon, a virtually never-ending measuring and optimizing.
Look forward to reading our next part: “Which Channels to Use in Growth Hacking”!
Contact:
Dr. Georg Feldmann
Head of Competence Team
City of Vienna Competence Team for the Digitalization of Communication
Phone: +43 690 40 476 118
georg.feldmann@fh-wien.ac.at
Photos: © Markus Spiske I Unsplash and FHWien der WKW