Digital marketing is a concept tree in which each branch of specialization has a different focus. The terms growth marketing and growth hacking are two of those branches.
The common goal of marketing is always to plan actions that drive the business from sales. But, being a complex and constantly evolving discipline, there are many different ways to achieve it.
Read on to find out what growth marketing is, how it differs from one of its neighboring concepts (growth hacking), and how you could implement this type of marketing in your business.
What is growth marketing?
In addition to being one of the most sought-after and highest-paying positions within modern companies, growth marketing is, as the name implies, a type of growth-based marketing.
All businesses have what is called a “sales funnel”. In this funnel, potential customers go through different stages that are reflected in a map called the “customer journey.”
Users do not behave the same way when they have just learned about a brand as when they have any experience with it or have just finished making a purchase.
It is for this reason that the sales funnel has a series of well-defined stages:
Acquisition: it is the period in which the brand name must be made known.
Activation: in this instance, users receive a satisfactory first experience that provides concrete value
Retention: the objective of this stage is to get users to come back for more content or a second experience
Income: contact with users begins to represent a monetization for the business
Referral: In this ideal funnel phase, users recommend the business to other people and spread the brand organically.
At each stage, data can be collected and processed to document a type of behavior and an established trend.
This data feeds the growth marketing strategy to develop different variables such as traffic or sales at each stage of the funnel.
That is why growth marketing is directly related to data-driven marketing: both operate based on small experiments developed and tested, based on factual data on the different behaviors of users.
The advantages of a growth marketing strategy
Digital marketing has evolved from its beginnings until today. One of his main achievements was acquiring the ability to apply artificial intelligence based on the short, medium and long-term strategies and objectives of business.
This is why the best Silicon Valley companies bring growth marketers into their corporate departments to achieve solid results and some of the following benefits :
A service entirely focused on the client and their specific needs. The data is never the same, varying from one business to another and, therefore, neither are the action plans.
Well-focused decisions focused on each stage of the funnel, rather than on general views or without determination.
Greater control over ROI (return on investment) at each stage of the business, allowing strategic planning of the available budget, distributing it based on strengths and weaknesses
And the possibility of achieving excellence in each of the experiences that users will have with the brand.
Differences between growth marketing and growth hacking
Now, we imagine that while reading about growth marketing, a question comes to your head: what about growth hacking?
It is that these concepts are closely linked and are part of the same, only that they present a specific difference:
The growth marketing works on more extensive databases and a general strategy for customers. While growth hacking is aligned to specific actions, usually linked to viralization.
It is as if one is part of the other, and vice versa.
The concept of “hacking” comes from the idea of ”hacking” the growth of a company and accelerating it, discovering what specific tactics are the best for that.
Growth marketing takes a holistic view of the entire funnel and all of its stages, while growth hacking develops those little experimental techniques within each phase of the process.
Some examples of companies that apply growth marketing strategies
As we told you initially, practically all companies that develop digital marketing with a modern approach and based on concrete data use growth marketing methods.
To name a few: Dropbox, Twitter, Airbnb, LinkedIn, Paypal, Amazon, and many more.
The actions they execute depend on the stage of the funnel in which they are planned.
For example, Dropbox gives more space to those users who attract new friends to use the platform. It’s a way to foster success in the referral phase of the funnel.
Growth marketing aims to achieve specific objectives at each sale funnel stage that a user goes through to become a customer.
Growth hacking is practically the same, with the difference that it is limited to even smaller and fewer total units than the previous concept.
Both models work thanks to the databases and reports of user data. Each decision is experienced and minimizes the margins of error.