Even though growth marketing has been a popular topic of discussion for the past decade, it continues to generate a lot of interest. These days, it’s not uncommon for a company to have a dedicated growth team and a specific growth strategy.
A well-thought-out growth marketing strategy will serve as a road map to help you quickly and easily expand your business. However, a large number of professionals incorrectly define this term and thereby miss out on promising development avenues. For example, they don’t get a business phone number and lose a potential communication channel that generates revenue.
With this comprehensive guide, you’ll have a firm grasp of the meaning of growth marketing and its many advantages. Additionally, we will discuss growth marketing and how it differs from traditional marketing, alongside growth hacking.
What Is Growth Marketing?
To put it simply, growth marketing is a long-term, strategic approach to advertising that helps businesses expand in a measurable, sustainable way. To locate, attract, convert, retain, and grow customers into committed brand supporters and evangelists, this data-driven, all-encompassing strategy employs end-to-end funnel optimization.
Growth marketers are responsible for leading these initiatives by devising unique plans to attract more customers, keep the ones they have engaged, keep them coming back, and ultimately turn them into raving fans of the company.
Let’s compare growth marketing to more traditional forms of advertising to help us grasp its principles. In contrast to modern marketing strategies, which prioritize long-term success, conventional approaches prioritize the success of individual campaigns. Most planning is based on speculation and assessed once a year, and the emphasis is usually on the company’s growth through acquisition.
On the other hand, growth-oriented marketing plans are for the long haul and are strategy-driven. Evidence-based planning prioritizes customer acquisition, customer retention, cross-selling, and up-selling.
Let’s imagine your online store is struggling to make ends meet because most clients only buy a single item. There is not enough profit on the order to cover the initial investment. If you use email marketing to stay in touch with your consumers, you can avoid any costs associated with client acquisition after the initial transaction has been made by engaging the customer and encouraging them to make additional purchases.
How Do Growth Marketers Work?
Growth marketers work cross-functionally to eliminate bottlenecks in the customer journey by optimizing and experimenting with a wide range of techniques and methods at each stage of the funnel. Here, the question becomes less about “How can we gain new customers?” and more about “How can we keep existing customers longer?” This is done by continuously enhancing down-funnel experiences with accurate targeting based on campaign data and other insights. To flourish in the long run, brands can use this method to communicate effectively with their intended demographic.
To raise brand recognition, a growth marketer might publish a series of search engine optimization (SEO)-friendly blog entries; if the reader is interested, they might take a quiz; after making a purchase, they might receive an email including user-generated content (UGC) for social proof and recommendations; and so on.
Growth Marketing vs. Growth Hacking
A common misunderstanding is that growth hacking and growth marketing are similar. Whereas growth hacking is concerned with immediate outcomes, growth marketing looks at the entire picture. A closer look at the distinctions between the two is provided below:
- While growth hacking focuses on quick expansion through acquisition, growth marketing targets steady expansion through a variety of methods.
- Growth hacking uses data to experiment and hone a result, while growth marketing uses data to spot patterns and adjust tactics accordingly.
- While growth hacking relies on manual methods that are constantly tested and fine-tuned, growth marketing relies on automated and algorithmic procedures that are fine-tuned regularly.
- Unlike growth marketing, which focuses on solving problems for end users, growth hacking prioritizes organizational issues.
Main Growth Marketing Tactics
Growth marketing is not a one-size-fits-all method of advertising but rather a process of trial and error used to find the strategies, methods, and techniques that will yield the best results for a certain product, service, or venture. If you’re working on a certain brand or project, you can quickly test out the following tactics to see which ones fit before shifting your emphasis to improve on those that perform the best.
To give you a better idea of what each tactic entails, here is a quick rundown:
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PPC stands for “pay-per-click,” an advertising model in which businesses fork out cash each time one of their ads is clicked on. Based on keywords, platforms, and the target demographic, advertisers place bids on the perceived value of a click.
PPC is used for many different types of campaign goals, such as:
- Boosting revenues
- Lead generation
- Strengthening product recognition
Relevance is the key to pay-per-click success. At any time, customers can do a targeted search for the goods, services, and data they need. When a user conducts this type of search, advertisers can show a relevant ad. An advertiser could display an ad related to pink lipstick-related in response to a user’s query for that product.
Online marketing that focuses on increasing traffic from search engines like Google is called search engine optimization marketing, or SEO marketing. There are several methods available to help businesses boost the visibility of their digital resources in search engines, as they are the most common way to find practically anything online.
When discussing tactics for improving a website’s visibility in search engine results, the phrase “search engine optimization” (SEO) is often used to describe both internal and external approaches. Each major search engine uses its own formula or “secret weapon” to determine how high to place individual websites in search engine results. These formulas, or algorithms, are considered proprietary information by the main search engines and are therefore protected from public view.
Marketing SEO specialists slowly reverse-engineer these algorithms through trial and error to discover the most effective search engine marketing strategies.
Content marketing is a method of attracting and retaining customers via the distribution of informative and entertaining content. By strengthening the audience’s familiarity and natural trust in the brand, this strategy can help draw in new customers and increase sales.
It’s evolved from a passing trend into a need for a company’s long-term success. Through content marketing, a company can increase brand recognition and familiarity with its target audience online.
Simply said, a business could strengthen its position in the minds of its target audience by providing them with relevant information and engaging in meaningful dialogue. No longer is it sufficient to simply exist in the digital realm; rather, the challenge now is to stand out from the crowd and maintain audience interest and engagement.
Conversion rate optimization (CRO) is a marketing strategy aimed at boosting the percentage of website visitors who end up making a purchase. These are the carrots and sticks that will get customers to perform the required action (e.g., download a video, sign up for a subscription, place an order, etc.).
Businesses must have a CRO strategy if they want to see results from their marketing and sales initiatives. At the same time that it advertises the brand, it also inspires individuals to take action. The use of these measures contributes to the expansion of the company’s brand recognition and financial success.
An effective CRO strategy begins with a website design that users trust. To ensure that your efforts to obtain bought or organic traffic are successful, your site’s navigation and usability must be first-rate. The final stage is the most complex of the process. Without compelling content, all those site visitors are useless to your organization. That’s why your website must generate prospects, subscribers, and buyers.
The term “email marketing campaign” refers to a coordinated series of emails sent to a target audience over time. Each email must have a well-worded subject line, relevant content, and a clear CTA to reach the campaign’s goal.
Email campaigns, like other digital content, need to strike a balance between providing useful information and entertaining readers. This means not giving away too much or too little about the content to maximize click-through rates.
When creating an email marketing campaign, it’s important to have content that is both focused and relevant to the broader campaign concept and target demographic. To reach out to specific demographics within their audience, marketers can employ dynamic content in more than one email.
The call-to-action (CTA) button is a standard feature in email marketing campaigns, and in many cases, a secondary CTA button is included. Your call-to-action buttons should stand out without being too flashy or overwhelming.
Growth Marketing Strategy: ARR Revenue Stage
Ultimately, the revenue you bring in will determine the success of your firm. You should track these indicators to see how much money you make or lose from each client. Metrics like this are especially important for subscription-based businesses.
- CLV (Customer Lifetime Value): – The quality of the service provided to the customer can be gauged in large part by this indicator. It’s a way to assess a client’s long-term worth to your business.
- Average Revenue Per User (ARPU): – This indicator shows how much money you make from each user over time. Specifically, it takes the average daily users over a given period and divides that by the money made over that time.
- ARR: Annual Recurring Revenue – For subscription-based goods and services, this metric is used. Annually, it calculates how much money a subscription brings in.
- Monthly Recurring Revenue (MRR) – This metric calculates the anticipated revenue from monthly subscription sales.
- Revenue churn – This metric considers the revenue lost over a specific time frame. It figures out the monthly recurring revenue (MRR) lost and subtracts the entire cost of any upgrades or additional services purchased during that month.
In today’s fast-paced corporate world, growth marketing is more than just a buzzword. It’s an intelligent strategy for long-term growth and expanding your company’s horizons. When drafting your strategy, carefully assess your business domain to wisely choose growth marketing tactics. While some may benefit from PPC and SEO marketing, others may find Email Marketing useful. Remember, that there is no golden rule here. Test various approaches to spot the best one.