Growth hacking

From Wikipedia, the free encyclopedia
Jump to navigation Jump to search

Growth hacking is a subfield of marketing focused on the rapid growth of a company. It is referred to as both a process and a set of cross-disciplinary (digital) skills. The goal is to regularly conduct A/B testing that will lead to improving the customer journey, and replicate and scale the ideas that work and modify or abandon the ones that don't before investing a lot of resources. It started in relation to early-stage startups that need rapid growth within short time on tight budgets, and also reached bigger corporate companies.

A growth hacking team is made up of marketers, developers, engineers and product managers that specifically focus on building and engaging the user base of a business. Growth hacking is not just a process for marketers. It can be applied to product development and to the continuous improvement of products as well as to growing an existing customer base. As such, it’s equally useful to everyone from product developers, to engineers, to designers, to salespeople, to managers.

Competences[edit]

Those who specialise in growth hacking use various types of marketing and product iterations to rapidly test persuasive copy, email marketing, SEO and viral strategies, among other tools and techniques, with a goal of increasing conversion rates and achieving rapid growth of the user base. Some consider growth hacking[1] a part of the online marketing ecosystem, as in many cases growth hackers are using techniques such as search engine optimization, website analytics, content marketing and A/B testing. On the other hand, not all marketers have all the data and technical skills required by a growth hacker, therefore a separate name for this field is applicable.

History[edit]

Sean Ellis coined the term "growth hacker" in 2010.[2] In the blog post, he defined a growth hacker as "a person whose true north is growth. Everything they do is scrutinized by its potential impact on scalable growth."[2] Andrew Chen introduced the term to a wider audience in a blog post titled, "Growth Hacker is the new VP Marketing"[3] in which he defined the term and used the short term vacation rental platform Airbnb's integration of Craigslist as an example.[4][5] He wrote that growth hackers "are a hybrid of marketer and coder, one who looks at the traditional question of 'How do I get customers for my product?' and answers with A/B tests, landing pages, viral factor, email deliverability, and Open Graph."[6][5] In the book "Growth Hacking", Chad Riddersen and Raymond Fong define a Growth Hacker as "a highly resourceful and creative marketer singularly focused on high leverage growth" [7]

The second annual (2013) "Growth Hackers Conference" was held in San Francisco set up by Gagan Biyani.[8] It featured growth hackers from LinkedIn, Twitter, and YouTube among others.[8] In 2015, Sean Ellis and Everette Taylor created GrowthHackers - the largest website community dedicated to growth hacking and now host the annual GrowthHackers Conference.

Methods[edit]

To combat this lack of money and experience, growth hackers approach marketing with a focus on innovation, scalability, and user connectivity.[9][10] Growth hacking does not, however, separate product design and product effectiveness from marketing.[11][12] Growth hackers build the product's potential growth, including user acquisition, on-boarding, monetization, retention, and virality, into the product itself.[13] Fast Company used Twitter's "Suggested Users List" as example: "This was Twitter's real secret: It built marketing into the product rather than building infrastructure to do a lot of marketing."[14] However growth hacking isn't always free. TechCrunch shared several nearly free growth hacks[15] explaining that growth hacking is effective marketing and not mythical marketing pixie dust.

The heart of growth hacking is the relentless focus on growth as the only metric that truly matters.[16] Mark Zuckerberg had this mindset while growing Facebook.[17] While the exact methods vary from company to company and from one industry to the next, the common denominator is always growth. Companies that have successfully "growth hacked" usually have a viral loop naturally built into their onboarding process.[18] New customers typically hear about the product or service through their network and by using the product or service, share it with their connections in turn. This loop of awareness, use, and sharing can result in exponential growth for the company.[19]

Growth hacking frames the user acquisition process through the "Pirate Funnel" metaphor (in short, new users flow through a 6-stage funnel - awareness, acquisition, activation, retention, revenue, referral), which got its name from the abbreviation of the first six letters spelling AAARRR. Rapidly optimizing this process is a core goal of growth hacking, since making each stage of the funnel more efficient will increase the number of users in the most advantageous stages of the funnel.[20]

Twitter, Facebook, Dropbox, Pinterest, YouTube, Groupon, Udemy, Instagram and Google are all companies that used and still use growth hacking techniques to build brands and improve profits.[21]

Examples of "Growth Hacks"[edit]

Below are the examples of growth hacks and are the most well-known acts of growth hacking. Often people see growth hacking as merely repeating these growth hacks, but one should know that the 'hacks' are only the result of a repeatable growth hacking process,[22] which all growth hackers use a way of working. Below are some of the most famous growth hacking examples:

  • An early example of "growth hacking" was Hotmail's inclusion of "PS I Love You" with a link for others to get the free online mail service.[23] Another example was the offer of more storage by Dropbox to users who referred their friends.[23][24]
  • Online worldwide independent lodging company Airbnb is an example of growth hacking by coupling technology and ingenuity. Airbnb realized they could essentially hack the Craiglist.org scale and tap both into their user base as well as their website by adding automated listing generators from Airbnb with the feature called "Post to Craigslist".[25]

References[edit]

  1. ^ "Growth Hacking Made Simple: A Step-by-Step Guide".
  2. ^ a b Ellis, Sean (June 26, 2010). "Find a Growth Hacker for Your Startup". Startup-Marketing.com.
  3. ^ Chen, Andrew (2012). "Growth Hacker is the new growth hackers". andrewchen. Retrieved 29 March 2019.
  4. ^ Ginn, Aaron (September 2, 2012). "Defining a Growth Hacker: Three Common Characteristics". TechCrunch.
  5. ^ a b Chen, Andrew. "Growth Hacker is the new VP Marketing". AndrewChen.co.
  6. ^ Holiday, Ryan (December 17, 2012). "Everything is Marketing: How Growth Hackers Redefine the Game". Fast Company.
  7. ^ Riddersen, Chad; Fong, Raymond (1 January 2017). Growth Hacking: Silicon Valley's Best Kept Secret. USA: Lioncrest Publishing. ISBN 978-1619616004.
  8. ^ a b Griggs, William (May 10, 2013). "6 important lessons from this year's Growth Hacker Conference". Venture Beat.
  9. ^ Ginn, Aaron (October 21, 2012). "Defining a Growth Hacker: Building Growth Into Your Team". TechCrunch.
  10. ^ Ginn, Aaron (October 28, 2012). "Build it and they won't come: How and why growth hacking came to be". The Next Web.
  11. ^ Holiday, Ryan (June 11, 2013). "Here's Some Marketing Advice: Your Product Is Terrible". Medium.com.
  12. ^ Ginn, Aaron (October 20, 2012). "Defining A Growth Hacker: Growth Is Not A Marketing Strategy". TechCrunch.
  13. ^ Jarvis, Chase (February 22, 2013). "From Obscurity to Internet Sensation — How Creatives Can Win the PR Game with Ryan Holiday". ChaseJarvis.com.
  14. ^ Holiday, Ryan (July 8, 2013). "The Secret That Defines Marketing Now". Fast Company.
  15. ^ Pelt, Mason. "3 Nearly Free Growth Hacks". TechCrunch. Retrieved 2016-05-18.
  16. ^ Ellis, Sean (8 May 2014). "Sean Ellis On Growth". medium.com. Medium. Retrieved 16 August 2014.
  17. ^ Kagan, Noah. "How My Blog Homepage Redesign Increased Email Signups By 300%". blog.hubspot.com. Hubspot. Retrieved 16 August 2014.
  18. ^ Chen, Andrew. "What's Your Viral Loop? Understanding The Engine Of Adoption". andrewchen.co. Retrieved 16 August 2014.
  19. ^ Ellis, Sean (June 24, 2014). Startup Growth Engines: Case Studies of How Today's Most Successful Startups Unlock Extraordinary Growth. Sean Ellis and Morgan Brown. Retrieved 16 August 2014.
  20. ^ Kiarash, Mansour (24 February 2020). "what is growth hacking".
  21. ^ Ginn, Aaron (December 8, 2012). "Defining A Growth Hacker: Debunking The 6 Most Common Myths About Growth Hacking". TechCrunch.
  22. ^ van Gasteren, Ward (March 12, 2019). "Growth Hacking Process explanation".
  23. ^ a b Holiday, Ryan. "Don Draper Is Dead: Why Growth Hack Marketing Is Advertising's Last Hope". BetaBeat.
  24. ^ Kehr, Alex (October 13, 2015). Hacking Growth: The Modern Marketing Mindset to Create Fast Growing Companies (First ed.). Wander Press. p. 122. ISBN 978-1515090014.
  25. ^ Needleman, Sarah. "Growth Hacking' Helps Startups Boost Their Users". The Wall Street Journal.