Building a Framework for Rapid Growth with Growth Marketing
Nowadays, companies are continually looking for new ways to leverage new tactics, strategies and tools that are necessary for one to hack growth by trying to achieve a hyper-growth rate. This is like The Hulk.
However, companies are continually facing a challenge in their growth mainly because their vision of growth is narrow. Due to this, a great deal of money, time and energy are spent on traditional and new marketing channels in an attempt to boost growth by driving up sales.
The mindset that new customer usually is equivalent to new revenue and new growth which is not entirely wrong. New customers’ acquisition is necessary to ensure the growth of a business. In 2014, several brands including Microsoft Cisco, Quest, Intel, Salesforce, LinkedIn, Marketo and Twitter had a marketing budget that was greater than 14% of their total revenue. Some even spent as much as 50% on marketing and sales and still, they experienced year-over-year growth.
Companies that are stuck on a marketing-focused growth model are missing out on various opportunities that could see their companies further expanding to become a dominant player. It is however still important to make marketing budgets since, without marketing, the business will struggle with promotion and exposure. The most important aspect is knowing how much you should allocate for marketing and they should also come up with a plan on how to use the resources in the company to create an additional growth.
Traditional Marketing VS Growth Marketing
An aspect that fuels the growth of any company is marketing. Almost 88% of marketers are currently using content marketing to attract a certain target market and to drive action. The action is a movement that flows from the top of the funnel down to a conversion or an opt-in which makes the visitor a lead that is passed on to sales.
85% of marketers that the most important goal of their marketing is lead generation, the only challenge is that the segments of the funnel are being missed.
Growth marketing is focused on the total lifetime value of the customer. They employ tactics that are designed to improve the initial sales, the number and frequency of purchase in the future. This is an important aspect especially when considering that existing customers are likely to try new products and spend 31% more every time they make a purchase compared to new customers. It has been noted that it is easier to sell products to existing customers.
A 5% increase in customer retention can improve profits by up to 95%. For one to realise massive growth, companies need to change their mindset to focus on more than just acquisition.
Building a framework for growth
1. Identify our top Channels
Marketing strategies frequently involve a number of marketing channels. Depending on what the company is offering and their business model and industry plus their audience and other factors, their performance tends to vary.
Instead of spending budget and effort equally across each channel to maximise acquisition among audience segments, identify the top three channels to make your acquisition and engagement. An example is one of ContentMarketer.io the primary channels are inbound marketing, advocacy and community. After identifying their top channels, they should plan to focus on only those at the top and pull your focus from the less effective channels.
2. Identify our weakness
Before stimulating growth, you will need to establish where the bottlenecks are in your funnel that creates customer churn or inhibits the growth of the customer relationship.
Top of the Funnel
The bottleneck is where you will lose the majority of your traffic due to qualification. The top of the funnel content is the point where a first impression is made. Depending on the content quality and positioning, your audience will qualify you to determine if they are dealing with the right people to solve their problems.
Middle of the Funnel
This is where you are probably going to lose customers since this is the consideration phase. It is at this point where there are relationship building and nurturing point. It is also where leads determine if their need is urgent enough to qualify for action and if your company is the right choice.
Bottom of the Funnel
This is normally the last step and it is in this phase that conversion is turned from a lead to a customer. If your funnel and nurturing are not on point, then you will not be able to get the leads across the finish line.
75% of leads never convert into sales due to poor performance, nurturing and engagement.
This is a point that most marketers fail to pay attention to. This is basically the after-sales services. Get to know how your customers are doing with your products or services and try and get feedback and reviews from them.
One you have noticed some weakness in your funnel and the customer lifecycle then you can start thinking of hope to turn those ideas into opportunities.
4. Prioritize and Plan
Once you have developed a list of ideas, the next step is to prioritise the ideas in order of importance. The ideas will help you to improve customer onboarding and building on the existing customer relationships.
5. Executive, Test and Repeat
There are two ways to prioritise for growth and development. Either by start-ups or through everyone else. The important thing to realise is that growth is all about high-velocity and high-tempo testing (Check our guide to A/B testing.)
3Bet Media is a Digital & Growth Hacking Marketing Agency, London based.
Contact us for a tailored Growth Hacking solution at firstname.lastname@example.org.