The marketing world is no longer considered as just reaching to your target audience, but one relatively new form of marketing may redefine the entire marketing industry. The term “growth marketing” surfaced about a decade ago, and since then, it has proven to be much more than a trend.
Why Growth Marketing?
Growth marketing is a data-driven approach that uses tests to determine how to optimize results. With growth marketing, brands have a blueprint to test frequently, learn quickly and adapt effectively.
Many business’s fails in following with traditional marketing approach:
- Retain existing customers
- Acquire new customers
- Increase profits.
In this case we need to think why we are lacking to retain customers? Why new customer acquisitions going down & ultimately why profit getting slow growth or no growth?
1.How to Retain Customers?
Just satisfaction is not enough now days we need to make them delight to retain your customers. Make them delight with unexpected & they will start talking about your brand. Example: if travel agency offers free newspaper, water bottle & free internet in rental car obviously traveller will share this experience with others & will stick with your travels company.
2.How to Acquire new customers?
After customer retention has stabilized, the pursuit for new customers. New acquisition brings your more profit find then rightly through digital growth strategies. Experience of your existing customers will be asset for acquiring new customers. Use existing customers experience to get new customers through various digital marketing services like SEO (Search engine optimization), SEM (Search engine Marketing), Social media Marketing etc.
3.How to Increase Profit?
New acquisition cost be lower than your profit margin. Otherwise your revenue may increase while profitability decreases. If customer acquisition costs exceed the lifetime value of customers, no matter how exponential revenue growth may be, the economics of the business model will never recover.
A successful growth marketing strategy will provide new sources of revenue without putting an unnecessary burden on expenses. If executed properly, retention rate will outpace shake, therefore increasing customer lifetime value.
The Growth Marketing Process
systematic optimization and incremental increase of acquisition, retention, and lifetime value of paying customers. This process allows every growth marketers to discover which methods work and, equally as important, which don’t.
What are the steps to mastering the process of growth marketing?
1. Define Actionable Steps
Audit whole project & do the SWOT analysis. Find out the lacking areas, weak area before you start. Calculate actionable areas & projected outputs. Build action steps with projected outcomes.
2. Experiment & Monitor
Once you ready with action steps monitor whole projects how every action affecting on overall growth. Example A/B testing how new landing pages performing? Which is performing well & why? What are the USP?
Growth marketing is about testing the moving parts and their impact on performance metrics. Some time you need to do micro testing & outcomes to build growth plans.
3. Implement – Improve
Once you’re ready with all pretesting, micro testing & results you are ready to move ahead for large move. If you find few experiments are doing good then you can start implementing on large scale. While implementing in large scale you may need some improvement do it & observe the growth.
Growth Marketing Best Practices
Growth marketing relies on best practices that span preparation, execution, analysis, and revision.
1. Establish Goals and Objectives
Before you start establish goal & objectives which will show you way to every step in growth marketing. Without goal & objective your whole game will be blind.
2. Stay Flexible
As you are experimenting new things. Stay flexible with respect to marketing condition & your product/ service status. Change your plans if needed because many things are not in your hand. Sometimes the most difficult thing to do is nothing. We must learn to practice patience and discipline by starting small, validating a strategy, and only moving forward if it’s proven successful.
3. Experiment with growth Strategies
Experiment on every possible part of your marketing part. Calculate growth in every action plan. Plan for growth indicators through different growth experiments on search media, social media or in product/service side which you think can be growthful.
4. Acknowledge Failures
Acknowledge when things aren’t going well and take necessary action to revise your strategies. Failures are steps to your success, you need to acknowledge & improve better in next attempt