We live in a world where every business is under pressure to grow. Growth is everything at a time of intense, hyper-competition fueled by the internet. Competitors are a click away, any misstep and potential customers are gone. Success depends upon your ability to craft a cogent growth marketing strategy. Growth marketing is really different from traditional marketing, because of the focus on growth, and the need to take a more experimental approach to marketing. You have to take an experimental approach, starting with a hypothesis and working towards an actionable idea. Here are the broad strokes of what you need to do to crush your growth marketing goals.
Define Your Goals
It’s important to understand what your growth target and churn rate means in terms of the amount of business you have to draw in.
For example, a business with $100,000 in monthly recurring revenue (MRR), and a churn rate of 3%, it must add $167,000 in new MRR to achieve a 100% growth rate year-over-year. If your business has a 6% churn rate, it has to add $227,500 to get the same growth rate.
Have a Multichannel Approach
A single channel approach is dangerous for your growth marketing goals. At a time when there are so many channels, not using all the channels limits you unnecessarily. You want to use as many channels as possible. Use traditional channels, such as TV, the print media, radio, as well as social media, podcasts, blog posts, and events and other channels.
Remember, growth marketing is, remember, is about using as many channels as possible across the consumer lifecycle, to grow your customer base and compound returns.
Cross-channel marketing is essential for growth marketing and growth marketers experiment to find the right balance of channels to maximize growth.
Test Your Ideas
You have to think like a scientist to test out your ideas. That means using the scientific method. A simple way to do this is with split testing, which is also called A/B testing. You develop a hypothesis, and design an experiment to test that hypothesis. So, with A/B testing, you try two versions of your hypothesis, with one with what you think will work, and one version that doesn’t include your idea.
Look at the Entire Customer Journey
Drescher & Cohen DDS have found that making improvements to their customer’s entire journey. This is true not just for service provision, but for achieving growth marketing goals. Typically, marketers focus on the beginning of the customer journey. Growth marketers look at the entire customer journey.
The entire customer journey is made up of the awareness, acquisition, activation, retention, revenue and referral stages. Growth marketers not only want to get customers through the door, they want customers to refer other people to your business. Peter Drucker, the great business guru, said that the purpose of business is to create and keep a customer. For growth marketers, it’s not just about creating a customer, it’s about getting that customer to refer other people to your business.