If you are still wondering whether growth marketing is worth investing in, check out this article.
Growth marketing is a very popular buzzword in the marketing industry. It’s not something you can define in two sentences. Growth marketing is all about coming up with new hypotheses, testing them out, and measuring what works and what does not. Then you stick to the strategies that work for you and scale them up.
Back in 2020, in the US alone, $236 billion was spent on marketing. There are plenty of different types of marketing. This leads to the question “Is growth marketing even worth investing in 2021?” Well, the right growth marketing strategies will give you higher ROI and help scale up your business.
The difference between traditional marketing and growth marketing is that growth marketing is not just about customer acquisition. It also focuses on onboarding retention and upselling.
You could say growth marketing is a more data-driven upgraded version of traditional marketing. Through rigorous testing, optimization, and enhancement, it identifies the best ways to enhance customer experience at every stage of the journey. Traditional marketing mostly focuses on the top funnel, while growth marketing aims to enhance the entire funnel.
Traditional marketing companies focus heavily on the company, the product, and the brand, whereas growth marketing companies like Lineout Marketing Agency run experiments on products, sales, and marketing, track their growth metrics, and create plans.
Growth marketing uses agile data-driven strategies and has a flexible budget, but traditional marketing only works with less agile tactic-driven strategies and a big budget.
Growth marketing arguably has the best funnel. The AAARRR funnel stands for:
In the awareness stage, you educate your audience about your brand, product, and services. Make people know about your existence through SEO content, websites, cold calls, mail outreach, social media ads, or other various digital marketing techniques.
Once you have piqued people’s interest, you have to acquire their details through the acquisition stage. Landing pages, chatbots, subscription forms, and cheat sheets are great tools for collecting information.
The activation stage is one of the most important stages of growth marketing. After you gain your customers' information, you have to convince them to use your products or services when they are interested.
You have to make sure your customers keep coming back to you. That is what retention is all about. Offer personalized support, loyalty rewards and discounts, and enhanced customer experience.
It’s all about generating money from customers in the revenue stage. You also have to consider cross-selling, upselling, creating new subscription plans, and avoiding churns and attrition.
You have to set up referral materials, programs, campaigns, and testimonials so that satisfied customers can refer your business to their friends, family, or other businesses.
Growth marketing is an extensive funnel, and you have to perfect each phase to get the maximum number of customers.
Here is what the AAARRR model gets you and your business.
Since growth marketing is a data-driven approach, it will utilize different techniques to get maximum traffic in your digital space. This includes organic traffic, paid traffic, and referral traffic.
SEO is the best way to get organic traffic since these are the people that stumble upon you through web searches and results. You have to create quality content with trusted inbound and outbound links to help people find you.
The traffic that comes to you through advertising channels such as native advertisements, online ads, banners, and non-traditional ad placements is paid traffic. Tracking paid traffic is a good way to measure whether your ads are working or not.
Lastly, any traffic that does not come from major search engines is your referral traffic. This includes social media traffic.
Growth marketing focuses heavily on getting leads and prospects. To optimize the process, it keeps track of conversion rates. This way you can analyze which channels and contents are bringing you more traffic and which ones are not satisfactory. You can then upgrade or drop the channels you don’t want to pay for anymore.
Also, check out your landing page conversion rates. Tweak your landing pages in various ways, such as by customizing the fonts, design, and layout. In the end, growth marketing is all about tweaking and customizing.
Blog and email subscription is another good way to get back your leads. You can track them using analytics like subscription rates, shares, and click-through rates.
The last thing is to offer an increased free trial. This one is used often by growth marketers to retain customers and have them use your service longer.
Growth marketing aims to reduce churn rates. The churn rate is the percentage of people that once used your products but have stopped. Since retention is a key focus here, growth marketers analyze every possible reason why the customer stopped using the service.
Targeting customers, bundling, and upselling are also part of retaining more customers. It increases the average order value and creates better campaigns. The last part of retention is about making their experience better by providing them with premium offers, lifetime services, and better engagement.
Traditional marketing prioritizes creating a brand identity from the get-go, but growth marketing focuses on creating a trusted, user-friendly, and reliable identity. Once it has a strong customer base, it expands its identity and turns it into a brand.
One of the main reasons growth marketing yields a better ROI is because it is much cheaper than conventional marketing strategies. Paper printed ads and TV advertisements can cost a lot of money. The distribution cost of these things is high as well. Growth marketing is more data-driven, more accurate, and gets better results at less than half the price of traditional marketing.
We could go on and on about the potential and benefits of growth marketing, but here are a few additional thoughts on it;
Now, just imagine what a skilled growth marketer with the right tools and the right budget can do for your business. So if you are still confused about investing in growth marketing, think again. The results can be amazing.