This blog post will explore Growth Hacking’s history, its importance in the startup world, how it can be applied to any company regardless of industry and size, and some different types of methods used during the process.
Growth Hacking is a process that attempts to quickly identify the best ways to empower a new company or product before it gets off the ground. It quickly and efficiently helps bootstrap startups or products looking for an increase in growth, specifically for a business with limited capital.
Many startups have since used growth Hacking by building a growth team to help them quickly identify means of increasing growth.
What are growth hacks?
They’re essentially clever, low-budget marketing tactics that companies use to grow their user base. Growth hacking is a systematic way of quickly scaling a company’s customer acquisition efforts by making smart use of time, money, and human resources. The focus is on the metrics that actually drive growth–new customers or revenue–instead of vanity metrics like tweets or likes.
What is a growth hacker job?
Many people have a wrong idea of what a growth hacker is. They are not somebody who hacks into computers and takes down systems. They also don’t do things like hacking into IT systems to steal credit card information or engaging in illegal activities for personal gain.
In reality, growth hackers are hackers with a purpose – they help companies by using their technical skills to innovate on marketing and business problems through creative thinking, social media tactics, and the art of persuasion.
Advantages of Growth Hacking
Growth Hacking can help a startup or company gain traction in the market and prove to investors that it can be profitable. It also helps solve the chicken or egg problem by getting users to create product evangelists.
By rapidly finding ways to acquire users, startups can use them to make other people aware of their products. This means that people who might have never heard about the product may end up using it and wanting to tell others about it.
Growth Hacking is a way to look at what’s already out there to help the startup find new ideas and ways of using them to help their product. It also gives the startup time to experiment with different strategies before launching their product and finding product/market fit.
These early experiments can bring valuable information about how people react to the product, whether it works or not, and what features are missing. This is critical information for any company because it gives them knowledge of their customers before they have actual customers (or revenue).
Growth Hacking is a way to test out what your users want or need. This can help the company tailor its product to its consumers, plan a scalable growth and find the true north instead of creating something that isn’t appealing or necessary.
Growth Hacking Strategies
There are several different types of Growth Hacking techniques, some of which are more common than others. The methods used will depend on the type of startup and the industry it’s in. Some companies like Dropbox have used multiple methods to increase growth.
Decreased Cost
Companies have two options when it comes to growing their user base. They can increase their advertising costs or lower the amount of money they spend on acquiring new users.
Dropbox has been highly successful at decreasing the cost of acquiring new users by encouraging employees who have already used Dropbox to “Dropboxize” their co-workers. Dropbox also incentivizes employees to refer other Dropbox users to it.
Dropbox started by purchasing some products they knew would be used by their users. They did not completely reinvent the wheel and build an entirely new app. Rather, they bought existing products, which helped them gain traction with users almost instantly. Their two most successful programs are:
- Referral program: when a new user signs up for Dropbox, he or she is then given a $10 monthly bonus for each person who signs up through them.
- Partner program: Dropbox is able to provide hardware and software to businesses that are willing to work with them. This allows Dropbox to provide a free service for their users while also helping companies get referred to them.
Google has also attempted this strategy by offering free services or advertising in exchange for seeing information about the behavior of their users so they can better target ads. Google’s AdSense product, which allows users to place advertising on their websites, is an example of a product they give away in exchange for information about how people use it.
Email Lists
Another common method of Growth Hacking when dealing with online startups is email addresses and email lists. By creating an email list of customers and building up their loyalty, businesses can easily convert users into customers who will be more likely to share the product with their friends and family.
This is why many online startups provide incentives for joining their email list or reward those who have already signed up.
For example, a company might offer customers $10 off their next purchase as an incentive to join their email list. As a bonus, the company can also ask to send out monthly messages about new products and deals.
This allows the startup to contact its customers and causes them to view them as a partner, rather than just another business trying to sell them something.
Social Networks
Many startups and companies have used social media to increase their growth. Social media has become increasingly popular over the past few years, and more startups are using social media specifically as a tool for acquiring new customers.
Many of these startups use social media networks like Facebook and Twitter to interact with their users daily. This helps them make friends with their current and potential customers, which can help to increase their chances of internet users sharing the product or service.
There is also a social media strategy of “friending” your way to growth. In this strategy, you try to create as many relationships as possible to build trust and authority with potential users.
This is how Google has been able to acquire people through its Gmail service. They have created a reputation for being generous, helpful, and even fun. These things have empowered them to become a trusted organization that people share their Gmail information without hesitation.
Startup Networking
A newer type of Growth Hacking technique is Startup networking. This is the process by which you create connections with other people, startups, and companies to form a community of like-minded entrepreneurs.
Startup networking involves joining specific communities and associating with people who will be helpful to your business. For example, you might join an online community of entrepreneurs or join a startup meet-up group. This can help you build relationships by sharing ideas and making connections with other people in the same industry as you.
There are many benefits to startup networking, including the following:
- It helps you build relationships with new potential customers or clients.
- It helps you build a community of peers.
- It helps you improve your reputation as a business or website.
- It helps you find mentors.
- It helps you find investors or other resources that will help your business.
- It helps you build your credibility as a company or product.
Many growth hacking techniques can be used by startups looking to increase their growth and conversion rates. The best strategy for a startup works well for each stage of their startup’s life cycle. As a startup grows, it may need to test new methods to determine the best way to keep up with its momentum and keep from slowing down too much.
