What is Growth Marketing and How does it Work?

Safalta Expert Published by: Gaurav Bawa Updated Thu, 20 Oct 2022 01:44 AM IST

Highlights

Many marketers refer to themselves as "growth marketers," but what exactly does this word imply? It is a method of attracting, engaging, and retaining consumers that is based on constant experimentation and an intensive attention on your customers' unique, evolving reasons and preferences.

Many marketers refer to themselves as "growth marketers," but what exactly does this word imply? It is a method of attracting, engaging, and retaining consumers that is based on constant experimentation and intensive attention to your customers' unique, evolving reasons and preferences. By developing and providing highly personalized, personalized content that is matched your consumers' demands, you will be able to maximize your organization's quick growth across a variety of channels, particularly those that are most important to your customers. Let's go further into what it means to be a growth marketer and highlight some typical possibilities for a growth marketing team to improve the user experience. 


Table Of Content 

What exactly is growth marketing?
The essential elements of a growth marketing approach
Marketing across several channels
Customer lifecycle
Growth marketing campaign examples
Loyalty
Referral programs
Onboarding 
Top of the funnel engagement


 

What exactly is growth marketing?

Traditional marketing frequently employs the same tried-and-true methods for reaching clients. Hold a sale, send out an email blast, and run the same 50 terms through Google Adwords. You could obtain some results, but the returns are likely to dwindle over time since you're not modifying your technique to make your money stretch farther, even as customer preferences change. Growth marketers, on the other hand, employ growth hacking tactics to experiment with numerous channels and strategies on a regular basis, progressively improving their testing to identify how to best maximize their marketing expenditure. Growth hackers were eager to deploy a variety of new experiments and regular analyses to rapidly build their user base at the lowest potential cost. Sean Ellis, an entrepreneur, created the word while he was looking for a new marketing staff in 2010. He wasn't searching for a typical marketer who was concerned with things like cost-per-acquisition; his major goal was to figure out how to build his user base as rapidly as possible. This was a major problem for SaaS firms, who needed to outperform their competition or die. After a decade, growth marketing has progressed beyond the "get-growth-quick" approaches of growth hacking. However, this does not imply that the effective parts of its climb to prominence have been overlooked. Growth marketing remains committed to its roots in testing, experimentation, and expansion, and applies these ideas to campaigns across the customer lifecycle. The sophistication of the growth marketing area has increased as marketing technology has evolved. A/B testing and multivariate testing are being used by growth marketers to design tests around what material is seen and when by different user groups, and the findings are being used to develop highly optimized tactics for each identified user segment, down to the individual level. Marketers may create highly targeted ads that reach consumers across numerous channels, allowing them to establish customized growth plans based on the customers' own behavioral indications. Successful growth marketers generate a highly engaged audience that helps to prevent churn and raise the lifetime value of each individual user, not just a larger user base. Building a highly tailored marketing approach has been found to decrease acquisition expenses in half, improve revenues by up to 15%, and enhance marketing spending efficiency by 30%. Looking deeper down the funnel, growth marketing also increases client retention and satisfaction. You are no longer seeking to monetize your audience when you prioritize providing great customer experiences. Instead of focusing on conversions and income, you're now looking for new methods to contribute valuable information to each user's ongoing trip. Growth marketing focuses on developing customer relationships and encouraging loyalty; it is a long-term approach in which authenticity and engagement generate advocacy and naturally raise client lifetime values.

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The essential elements of a growth marketing approach

Metrics like as customer acquisition rates, conversion rates, customer retention rates, and client lifetime value can be used to guide a growth marketing plan. Here are some of the most effective strategies used by today's growth marketers to attract, convert, generate, and retain engaged consumers. All of these strategies are commonly employed in the e-commerce industry, but they may also be effective for brick-and-mortar businesses. The essential elements of a growth marketing approach Metrics like as customer acquisition rates, conversion rates, customer retention rates, and client lifetime value can be used to guide a growth marketing plan. Here are some of the most effective strategies used by today's growth marketers to attract, convert, generate, and retain engaged consumers. All of these strategies are commonly employed in the e-commerce industry, but they may also be effective for brick-and-mortar businesses. You may then tailor future marketing efforts around that variant, iterating on your accomplishments as you go to improve performance with each test. It's vital to remember that just because the "B" test performed well with one audience segment, the "C" test may do better with another: Don't just send out A/B tests in bulk; instead, focus on personalized segments for each one to determine what material connects with that specific target group, and then test fresh variants to improve performance.
 


Marketing across several channels

Cross-channel marketing focuses on developing a strategic channel strategy to contact your clients, which may involve email marketing, SMS messaging, push notifications, in-app communications, direct mail, and other channels depending on your target audience's preferences. When adding a cross-channel marketing strategy into your growth marketing strategy, you must first identify the individual user's communication preferences and then develop your campaigns appropriately. A/B testing may help you realize, for example, that a specific user reacts to push message offers at a 60% greater rate than email marketing offers, so you can tailor future campaigns to focus on push offers. It's also beneficial to have a comprehensive marketing strategy that connects numerous channels so that you can engage with your audience wherever they are, employing contextual campaigns that help you understand their previous behavior across each platform.

Customer lifecycle

A customer lifecycle describes the path that your customers take as they discover about, connect with, purchase or convert from, and re-engage with your organization. To simplify, growth marketers focus on three important lifecycle stages: activation, nurturing, and reactivation. Each stage has a distinct purpose in terms of customer experience and is frequently distinguished by distinct marketing. The activation stage is the first step of the lifecycle in which corporations attempt to pique consumers' attention and interest. To create familiarity and credibility, growth marketers target clients with welcome, onboarding, trials, and other introduction efforts. Companies nurture and engage consumers during the nurture stage to develop connections. This stage often accounts for the majority of cross-channel marketing from businesses, including deals, promotions, current updates, newsletters, and more. The last stage of reactivation focuses on re-engagement. Companies renew consumer interaction at this point to boost retention and loyalty through initiatives such as post-purchase, abandonment, loyalty or win-backs. In terms of significance, no single stage is more important than the others. Customers naturally proceed through this lifecycle at their own pace, but growth marketers use an arsenal of need-specific tactics to proactively meet their evolving wants.


 

Growth marketing campaign examples

Next, let's look at some examples of growth marketing efforts in action. Growth marketing tactics may be utilized to support a variety of goals, such as motivating existing customers to participate in referral programs, engaging new consumers, and top-of-funnel engagement, to name a few.
 

Loyalty

Customer retention ensures that the consumers you worked hard to acquire continue to buy more of your products and services. When it comes to picking what to purchase and who to buy it from, your customers have more options than ever before, so businesses must constantly win customer trust. Showing your clients that they are more than simply a name and a dollar sign in your database may boost brand sentiment. Loyalty initiatives are an excellent method to keep your loyal consumers returning for more. Find methods to incentivize their experience as a gesture to their patronage, for example, if your company offers a membership program. Campaigns promoting offerings such as exclusive access, sneak peeks, or tiered status awards verify your brand's continuous loyalty. Taking insights from previous customer conversions and repeating those desirable behaviors with tailored loyalty programs will help keep your business close to your consumers' hearts. 
 

Read more: Understanding 4 Types Of Artificial Intelligence(AI)


Referral programs

Marketers are continually testing and tweaking offerings in order to attract new users through their most effective advertising channel: existing consumers. According to Nielsen, 83% of customers trust referrals from friends and family more than any other kind of advertising, therefore a solid referral may provide strong social evidence for attracting new users. Consider segmenting your audience and presenting one form of reward to one group and another to the other in order to test referral offers: The idea is to locate the sweet spot in terms of referral conversions per dollar invested. For best-in-class referral programs, look to successful SaaS brands:
 Dropbox, for example, started a two-sided referral scheme in which both the current user and the suggested user earned 500MB of free storage space upon the referred person's login. The organization was able to significantly lower its advertising budget to recruit new customers while increasing overall signups by 60%.
 


Onboarding 

Once a new client has signed up for your product or website, you have an excellent chance to drive their engagement with your brand and collect more data that can help you design better experiences. Remember that you want to improve the customer experience for your new users, so introducing a multi-channel onboarding sequence where they're likely to engage with important material will assist. For example, your initial message may be a basic "Welcome!" message, followed by a message asking consumers what sorts of things they're most interested in. Another message may inquire if they wish to get updates by email or mobile.
 


Top of the funnel engagement

Pushing too hard for a rapid sale might be a turn-off when attempting to acquire new consumers. Instead, you should develop a long-term strategy to assist them to become acquainted with your brand so they may take the next step on their own terms. In this scenario, a content marketing plan may assist your company to establish thought leadership expertise while also engaging new customers who may wish to buy from you in the future. Create buyer personas to understand who your prospects are and create content to appeal to each of them. Opt-in to your email newsletter or acquire a free item, such as an ebook or checklist, which might be your call to action. You can reach your target audience via organic social media channels as well as paid social advertisements and retargeting, and you can use A/B testing to optimize your social sharing, ads, and content headlines to increase engagement and form conversions. We now have the tools and technology to turn any marketer into a growth marketer. Your focus should be on constantly testing and improving for increased engagement and a better customer experience, leveraging highly individualized preferences to entice customers. As you experiment with different techniques, make sure you're always gathering data so you can create, test, and iterate along the way to continuously improve the customer journey.

Growth marketing is a data-driven strategy for establishing long-term success and increasing revenue. Growth hacking aims to achieve short-term goals or address a business problem through fast testing and iteration of a solution or product.

What exactly are growth strategies?

A growth strategy is an organization's plan for overcoming existing and future problems in order to achieve its expansion goals. Increasing market share and revenue, acquiring assets, and upgrading the organization's goods or services are all examples of growth strategy aims.

What is the purpose of a growth marketing strategy?

Growth marketing is analysing metrics-based data to identify things like how many leads convert to customers. Each level of the sales and marketing funnel provides an opportunity to improve acquisition, conversion, and retention rates.

What is the most effective marketing strategy?

If you're seeking for the most successful small company marketing plan, content marketing is the clear victor. Material marketing comprises blogs, videos, social media postings, podcasts, webinars, and other forms of content that may be distributed online.

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