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What Is Growth Marketing And Do I Need It?

Growth marketing has become increasingly popular in recent years. If you are yet to try it, growth marketing may be a successful marketing approach for your business. But first, you need to understand what it is and how it works.

In this digital guide, we outline what growth marketing is, whether it can be successful, how it differs from traditional marketing and whether or not it is right for you.

What Is Growth Marketing?

Growth marketing, often known as growth hacking, is a holistic marketing approach that aims to attract, engage and retain customers. It focuses on the entire marketing funnel and customer journey and allows you to grow your business by understanding what your customers really want.

Growth marketers experiment constantly by trialling a range of small (and sometimes inexpensive) marketing tactics. These experiments are closely monitored using a series of data analysis tactics, including funnel analyses, A/B testing, surveys etc.

This data is then used to gain a better understanding of customer preferences and behaviour. By learning and reacting to customer behaviour, the marketing tactics can be altered to improve effectiveness.

Does Growth Marketing Work?

Yes. Growth marketing, when done properly, can be an incredibly effective marketing approach. Countless companies that are now household names found success through growth marketing, including Dropbox, Quora, PayPal, Pinterest and Airbnb.

Dropbox, for example, experimented with several tactics but ultimately found success with one simple (and cost-effective) referral tactic. They offered free GB to users if they invited their friends to sign up for Dropbox.

Dropbox successfully took a customer pain point (not having enough storage) and used it to gain new customers. This enabled them to jump from 100,000 customers to 4,000,000 customers in just 15 months!

How Is Growth Marketing Different To Traditional Marketing?

There are several ways in which growth marketing is different to traditional marketing. With traditional marketing, the marketeers within a business focus only on the top of the funnel (awareness and interest).

Then, the sales team tend to focus on the middle of the tunnel (consideration and conversion) and the product/service team focus on the bottom of the funnel (customer loyalty, retention and advocacy).

The problem with this traditional method is – these different teams/departments aren’t always great at collaborating or communicating. And this can seriously impact the bottom line.

For example, the sales department may be struggling to convert if the marketing team is only bringing in low-quality leads. Similarly, the lack of collaboration may cause the product department to miss out on new marketing techniques that can be used to market new products/features.

Whereas, a growth marketer will focus not only on increasing brand awareness but also on keeping customers interested and turning them into advocates for the business.

Image of marketing funnel with traditional marketing techniques and marketing funnel with growth marketing techniques
Image source: www.blog.useproof.com

Growth marketing, unlike traditional marketing, is very experimental and uses lots of tactics that are often considered unconventional. However, some of these tactics may be affordable, making them ideal for businesses with smaller marketing budgets.

Whereas, traditional marketing focuses on the use of tried and tested methods that are often very expensive. And because they are “tried and tested”, many traditional marketers don’t track or tweak the methods to improve them.

As well as being experimental, growth marketing is also heavily data driven. By constantly monitoring and testing the tactics, growth marketers can modify each tactic until they find the tactics that succeed.

But this is not to say that traditional marketing should be abandoned. The best growth marketing strategies tend to be the ones that incorporate valuable tactics such as A/B testing, SEO and data-driven campaigns with existing traditional marketing methods.

Dive deeper into the difference between growth marketing and traditional marketing in this Search Engine People article.

Do I Need Growth Marketing?

Growth marketing is an excellent marketing approach for many different business types but is most effective for consumer-facing businesses. It allows your marketers to take advantage of new trends and opportunities that are created by a variety of new technologies.

If you would like to generate high-quality business leads that turn into revenue generation and customer loyalty, then you need a growth marketing strategy. And that growth marketing strategy should include:

Multi-Channel Marketing

Your customers will be spread across different marketing channels, and knowing how to reach these customers on their preferred channels is important. For successful growth marketing, you should aim to cover a mix of the following channels:

Data Analysis

An important aspect of growth marketing is the process of collecting and analysing data to test whether your tactics are working. One of the most popular ways to test a growth marketing strategy is through A/B testing.

A/B testing allows you to observe the differences or similarities between two variations of a similar tactic. It helps you understand which tactic is working better and why so you can then tweak it further for ultimate effectiveness.

Emphasis On The Customer Journey

As mentioned above, growth marketing is effective at helping you understand what your customers want. And to succeed at growth marketing, you need to learn everything you possibly can about the customer journey, from the moment a customer is made aware of your brand, to the point they become a loyal customer and brand advocate.

Want to Find Out More About Growth Marketing?

If you think growth marketing might be the way forward for your start-up or small business, we can help. Here at AdLens Digital, we’re a digital marketing agency offering a wide range of services! Get in touch to find out more.

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