There are still a lot of misconceptions about growth hacking and what it really means. It’s actually a very simple concept that is proving highly successful to an increasing number of companies.
Growth hacking combines data analysis and smart marketing techniques to laser focus on achieving scalable business growth. Effective growth hacking is based on continuous testing, analyzing, and then optimizing everything you do. It culminates with documenting all the data and knowledge you’ve gained during one process and applying it to the next one.
Are You a Growth Hacker?
A growth hacker is a creative marketer, product manager and data analyst all rolled into one. They use analytics, lading pages and testing to ensure that they fully understand customer preferences and behavior. This means iterating and optimizing until they find the solution with the highest growth potential. And … it takes a team!
The Pillars of Growth Hacking
Successful growth hacking boils down to finding the weakness in a system and using it to your advantage. These well-known examples illustrate growth hacking at its best:
- Dropbox: This company started as a small, invitation-only service that quickly grew to more than 500 million users. Dropbox succeeded by creating a sense of exclusivity: sending targeted messages crafted for specific platforms where they knew their potential customers already congregated.
- Spotify: By simply allowing its users to automatically post whatever they were listening to on Facebook, Spotify enjoyed enormous growth. This hack is a classic example of leveraging other people’s platforms or audiences.
Growth hacking is based on the following business pillars:
- Achieving a growth mindset. Focus all your efforts on achieving the one metric that matters most to reaching your goal. Make sure it’s measurable, achievable and straightforward.
- Building the right team. Three essential areas of expertise for growth hacking are creative marketing, software programming and automation, and data analysis and testing. Look for leaders with a high-level knowledge in all areas, as well as specialists who can zero in on each one.
- Measuring everything. All growth-hacking decisions must be based on data. There is no room for assumptions.
- Listening to your market. Tailor your product to what your potential customers are really asking for. The trick is to get to know your customers better than they know themselves.
- Making sure you have a product-market fit. Build growth into your product so it sells itself. When about 40 percent of your users report they would be very disappointed if they could no longer use your product, you probably have a solid product-market fit.
- Using the right traction channels. Options include viral marketing, PR, search engine optimization, advertising, email, blogs, trade shows, community building and more. Determine the right combination for your business and product at this particular time.
- Testing, testing … and then testing some more. Using your research and measurement techniques, continually search for ways to optimize. Develop hypotheses that are simple, clear and relevant – and then keep testing them till you’re satisfied with the results.
As you build your business and develop your growth hacking team and strategy, a smart move might be partnering with a professional employer organization. Your PEO will assist with all aspects of talent management and HR administration, freeing you up to focus solely on your core responsibilities. To learn more, contact Lyons HR today.