Growth-marketing is the result of the evolution of traditional marketing, which aims to identify the most effective areas of business growth, through rapid experimentation with channels of attraction, sales techniques and product development. Let's take a look at what the main features of Growth-marketing and its key principles are.
The key features of Growth marketing are the following:
Let's take a closer look at the listed features. So, first of all, you need to pay attention to the fact that Growth-marketing is focused on business growth, i.e. not on such metrics as attracting new users, for example, but on business growth. As the next distinguishing feature of Growth-marketing from conventional marketing, it should be noted such as the application of a scientific approach, focused on working with hypotheses, thus, everything is based on hypotheses and various assumptions, on the basis of which are built further action. Consequently, it is necessary to form a hypothesis, an assumption that must then be tested. The next important feature of Growth-marketing is that everything that can be measured is measured, all work is based on analytics and data and the use of the latest technologies that allow to automate the routine and make the work more efficient and effective. The next distinguishing feature of Growth-marketing from traditional marketing is that in Growth-marketing the work is done through the whole funnel, i.e. from the first touch of advertising material by the client to repeated sales to this client. And finally, another key feature of Growth-marketing is that the Growth-marketer must be T-shaped, i.e. he must be not only an expert in his part of the job, but also must have skills and knowledge in related fields and be able to apply them in practice.
So, we've looked at the main features of Growth marketing, and now let's move on to the essence. As already mentioned, Growth marketing is primarily focused on business growth, so the Growth marketing team is focused on business growth, that's its main focus, its main goal. But what does this look like in practice? Let's take a look, too.
In practice, this means that the Growth-marketing team takes as a basis some important business metric, such as revenue, profit, EBITDA, or some other metric that can be expressed in terms of value, in terms of money, or the so-called North Star Metric, a non-monetary metric, can be taken, in order to see how the business grows, how the business increases value for its customers, for its shareholders, and, therefore, increases itself. All other metrics, for example, such as the cost of attracting a new customer, the number of new customers, etc., are certainly important, but are used as auxiliary. Thus, the work of the Growth-marketing team is focused on the growth of key business indicators, reflecting the growth of business value.
Well, we have briefly considered the main features of Growth-marketing, but it should be noted that it is worth further and deeper study. This approach allows to find the optimal one for business growth from a variety of different options, it has proven its effectiveness in practice on the example of companies such as PayPal, Airbnb, DropBox, etc.