For the second time, we have hired another Growth Hacking trainee to strengthen our team. The question: “What is Growth Hacking?” is asked a lot. Growth Hacking seems to be the “Buzz” word of the year. But what does a Growth Hacker do? Where did the term come from? And how could it add value to your company? Let me give you some insights about this extraterrestrial buzz word.
Where does Growth Hacking originate from?
Growth Hacking has started in the Start-Up industry. Start-Up companies have limitations in three factors. First of all, they do not have the resources to fund a big marketing campaign. They have to set it up in a cost-efficient manner.
The second factor is traffic. Since it is a start-up, not many people know about it yet and there is not a lot of traffic to test experiments and see big differences.
Lastly, there is the time. Start-ups don’t have the time to work on experiments in marketing. When they take too much time, there is a chance another company steals your shine! With the limitations of the start-up companies, the Growth Hacker was born. The Growth Hacker has to work with a lack of traffic, resources and time, in order to make the start-up grow immensely.
What does Growth Hacking stand for?
Now that we know the origin of the Growth Hacker. Let’s look at the words Growth and Hacker. Growth doesn’t just stand for the growth of a business, but also for experimenting, the growth mindset and acceleration.
Hacking stands for creativity, data, disruptive thinking and online tooling. How to make the process easier and finding ways to automate processes which have to be done more than 3 times.
The characteristics of a Growth Hacker is someone who replaces the old methods of marketing with what is testable, trackable and scalable.
The 3 elements of Growth Hacking
Growth hacking is made out of 3 elements. You could say that the combination of these three elements is the job description of a Growth Hacker. The first element is Creative Marketing, thinking outside of the box and finding new ways to market the product/service. Next is experimenting and data, learning in a validated manner. Making quick experiments and look at the gathered data to optimize the experiments. The third element is automation and engineering, the key with this element is to make processes more efficient. Putting these elements together, you will have a Growth Hacker.
The process of Growth Hacking
A Growth Hacker is dependent on the process. This process is designed to keep going in circles because there is always something that can be improved. Growth hacking is not about the one time hack, it is not a magic trick. It is about following a process and having a mindset of experimentation. Experimenting is key in the Growth Hacking process, it is not about trying to get it perfect on the first try. It is about testing and getting out there to find out what works and what doesn’t work. Every experiment there needs to be a definition of the One Metric That Matters. This will show when your experiment has been a success and what experiment you can run next.
The Holy Grail for every Growth Hacker is the AAARRR funnel (also known as the Pirate Funnel). This funnel represents what the customer journey is for your company. In every stage of the funnel, experiments can be run. Every stage also has a One Metric That Matters defined. These will support your experiment. A good metric should be comparable, understandable and a ratio/rate.
The life expectancy of large companies is declining at a fast pace. In 1930 the life expectancy of large companies was 70 years. In 2015 this life expectancy is just 10 years. There is a decrease within corporates, often this is not about the lack of resources, but about the lack of innovation. Large companies need to be on their toes and quick at making changes in the business model. It is always important to put yourself in the shoes of your customers.
In order to achieve this, there is a need for a Growth Team. A Growth Team consists of three elements. First of all, the technical skills. These are important for the automation and engineering side of Growth Hacking. The second element is the creative skills. These skills are important for the creative marketing side of Growth Hacking. Lastly, there is a need for analytical skills, for the experiments and data side of Growth hacking.
When you have all the elements in one team, you have created a Growth Team.