The growth hacking methodology became popular in Silicon Valley at the beginning of 2010, when companies decided to implement creative techniques in order to acquire and retain their customers more economically.
Currently this practice is considered an excellent alternative to grow quickly and safely.
In this Blog you will know the what and how of the term that he left in the history of Digital Marketing to Sean Ellis as the Father and first Growth Hacker in the world.
Welcome!
What is the Growth Hacking methodology?
Growth Hacking is a marketing methodology implemented in different companies, which focuses on the accelerated growth of a company. Through the use of creative and innovative techniques, marketers seek to optimize the growth of a company in a relatively short time.
What is Growth Hacking betting on?
Instead of focusing on traditional marketing techniques such as public relations and offline advertising, this methodology focuses on scalable growth , using data analytics to assess different growth opportunities .
Many companies have launched their Growth Hacking strategies for various reasons, here we tell you the most frequent:
- Acceleration of growth: While gaining leads, the goal is also to increase revenue in an efficient and secure way.
- Low cost: Instead of investing large amounts of money in traditional marketing, a company can implement this methodology at low cost and thus generate a high impact by increasing its base of potential customers.
- Customer retention: focuses on providing an excellent customer experience and also an increase in the lifetime value of users.
What is a Growth Hacking Funnel?
From this definition of the term Growth, applied to digital marketing, and from the objectives of this methodology, the Growth Hacking funnel was born , a tool that helps companies to visualize their customer retention process through different moments.
These are the 5 stages of the Growth Hacking funnel …
1. Acquisition: the objective of this first stage is to attract new customers to the company through different tactics such as advertising, content marketing, SEO and social networks.
2. Activation: once the user has become a customer, the objective of this stage is to ensure that they become involved with the company's products or services, and likewise that they commit to the company. For this step you can make personalized welcome offers and tutorials.
3. Retention: At this stage it is important that the acquired customers continue to be involved with the company. In this case, the best practices may be the implementation of loyalty programs and customer feedback, in order to know their opinions.
4. Monetization – It is important to assess if the customer base increased, as well as if there was a sustainable income stream. At this stage it is important to ask ourselves: how many people pay and how much are they willing to pay?
5. Recommendation: In the final stage of the funnel, the goal is to encourage satisfied customers to refer other potential customers to the company. You can build a referral program and generate incentives , as well as track customer satisfaction.
The Growth Hacking funnel will help you get clients with less effort and resources, it will allow your company to identify the best performing tactics in front of your clients, it encourages innovation and it is highly adaptable. Also, evaluate performance metrics.
Advantages and Disadvantages of Working with the Growth Hacking Funnel Model
Advantages
- It is easy to understand: it is a simple methodology, it helps marketers to visualize the entire process with their users, from the beginning to the conversion of their customers.
- Saving time and resources: it helps companies to identify the problems they have in their sales process and also to give them a solution.
Disadvantages
- It is not a miracle tool: although it is a useful methodology for companies, it does not work miracles. Marketing efforts are needed to achieve the desired growth .
- Requires an agile mindset: Companies must be willing to experiment and fail, as well as A/B test in order to achieve effective growth.
Why choose the Growth Hacking funnel and not traditional marketing?
Both Growth Hacking and traditional marketing have different approaches in order to achieve the desired objectives.
While marketing is based on creating advertising strategies , large-scale sales and public relations, Growth Hacking seeks to experiment through data and technology. Is Growth Hacking the new marketing?
Examples and success story of Growth Hacking
Many of the most recognized companies in the world have used this methodology in their marketing strategies, among these are:
1. Uber: they offer discount codes for referrals.
2. Dropbox: This company has managed to get thousands of people to share its value and new users to join this tool.
3. Facebook: they provide user experience in their notifications.
One of the most important reasons why these companies have managed to grow exponentially is because they have been able to apply one of the most important pillars of Growth Hacking, data .
Data analysis is fundamental and is an indispensable part of this methodology since we can understand our funnel in detail , as well as determine at what stage we are having problems and where we should direct our attention.
A clear and much closer example is Zulu Transfer , a Colombian company that facilitates any type of international transaction for companies, from international payroll payments to capitalization of international investments , which has achieved growth of up to 40% per month.
Zulu was born with the objective of providing a digital dollar savings experience through a mobile application for people, but after a year of operation, they understood thanks to the data that their monetization phase in the funnel was failing.
They decided to analyze their target audience and understood that companies could get much more out of this technology, accessing a competitive, secure and easily accessible international payment ecosystem.
Just like this company, many companies in the market that execute this methodology seek to understand their target customer in order to execute the funnel in the best way, and likewise understand what the results of each stage were.
Finally, recommended books on Growth Hacking
In summary, companies should implement the Growth Hacking funnel in their marketing strategies, as it will allow them to improve their efficiency, accelerate the growth of the company and adapt to market changes in a safe and effective way .
We recommend the following books in which you can learn more about this methodology and also implement it in your company:
- Hacking Growth, de Sean Ellis y Morgan Brown
- Growth Hacker Marketing, de Ryan Holiday
It's your time, now create and grow with the Growth Hacking funnel technique
Good practice!
