You've probably heard of Growth Hacking, but may not have heard of Growth Marketing simply "Growth" - or even aportuguesando, the Growth Marketing.
While Growth Hacking is a line of experiment-driven marketing and extreme testing, Growth Marketing is a growth- oriented, preferably exponential, discipline.
Growth Marketing has already conquered Silicon Valley startups and is now landing in Brazil to revolutionize the way it manages sales, acquisition and customer retention strategies.
It is worth mentioning, however, that Growth will not be for any company, but especially for those that work to some extent with disruption and exponentiality.
What is Growth Marketing?
Growth Marketing (or Growth Marketing) is a new marketing methodology for disruptive and exponential business growth.
While traditional marketing is accustomed to "managing" marketing, communication, lead generation and ROI resources, Growth Marketing proposes more agility, activity and steady growth.
From a growth perspective, marketing and sales should play a unique role and avoid unrelated silos.
Moreover, Growth is not exactly about selling: of course growth depends on selling, but more important than selling is retaining customers they have acquired, and thus generating revenue recurrence.
Growth Marketing is used from startups to big digital businesses like Google, Facebook, Netflix, Uber, etc.
Differences Between Traditional Marketing and Growth Marketing
In the table, we look at the key features that distinguish a traditional marketer from a growth marketer.
While the traditional marketer is primarily focused on branding and sales, Growth is focused on growth.
The big crux of the matter is that growing is not just about selling, but about retaining customers and generating recurring revenue.
In this sense, selling is really just the first step for the Growth Marketer.
While traditional marketing works with the Return on Investment (ROI) metric, the Growth professional will analyze the Cost of Acquisition (CAC) and Customer Lifetime Value (CLV).
For the growth professional, revenue generated over time is more important than first revenue, which enables more robust and long-term focused strategies.
Understand this with two examples:
Focus on ROI: The trader will analyze over a specific period (for example, a month) the sum of marketing expenses and will compare with the revenue generated.
Focus on CLV / CAC: The trader will analyze the relationship between the cost to bring the customer and the revenue (net or gross) generated while the customer is buying.
These two differences will therefore also require different sales funnels.
The Growth Funnel vs Traditional Sales Funnel
Funnel is a strategic model that aims to structure the steps that the customer goes through in a business, from the internal point of view of the company.
Unfortunately, most companies don't even use a traditional sales funnel, which can still be extremely powerful.
To clarify the understanding, let's look first at a traditional sales funnel:
Sales Funnel Example
It basically aims to direct efforts towards a Consumer Journey where the customer first knows the brand (Top - Discovery), then considers buying (Half - Considering), makes the purchase (End - Conversion), and then is loyal. and generates repurchases (Loyalty).
However, Growth's funnel is considerably different and focused on a broader, more uncertain and more disruptive Consumer Journey:
Growth Marketing Funnel
Activation: Create an “Aha” moment, which is when the consumer has the first excitement with your product; For example, in social networks this occurs when a friend is added; An Ecommerce can be when the order reaches the customer.
Retention: At this stage are efforts for the user to return to the product or service and keep as many active users as possible. That is, it is the frequency of use, which is influenced by the quality of the product.
Monetization: At this stage, efforts are made to generate the highest monetization (revenue), which may be through collection, upsell, cross sell, etc. The big focus here is on generating maximum recurring revenue that doesn't produce churn.
Note: The great strength of any and all Marketing remains word of mouth, so you must ensure maximum customer satisfaction so that they want to refer to friends and acquaintances.
As you can see, the two funnels are very different: the first is focused on selling products and services, while the second is focused on keeping users active and generating new and different forms of revenue.
Of course, this Growth funnel is just one example, much used by SaaS platforms or mostly digital products, but by understanding and deepening you can bring insights into your business model.
You may have noticed that there is much greater dynamics and intensity when working with Growth Marketing, because the Growth professional can even participate in building the product.
And this new form of team organization is called Squad, which in free translation means "squad."
Ok, but how does a squad work?
Squads are basically multi-disciplinary professionals who work together to solve specific problems.
A squad can consist of the following professionals: communication, data scientist, marketing and engineer.
Squads oppose traditional departments, which have specific competencies in specific areas; Squads have ALL the skills needed to solve a problem.
This brings agility to processes, but it is worth noting that not all companies will be able to work with Squads.
5 Tools That Are Indispensable For The Growth Professional
The Growth Marketing professional is often less generalist and more “hands on” than traditional marketers.
While they were planning large campaigns, focused on one single activity, the Growth professional can manage many micro processes that must be performed with maximum efficiency.
So here are 5 tools that Growth professionals love:
Cohort Analysis: one of the main Growth tools, which makes the “Acquisition” based Customer Acquisition analysis, that is, input periods, which can also be segmented by acquisition channel;
NPS Surveys: Net Promoter Score (NPS) is one of the metrics preferred by Growth professionals because it measures consumer satisfaction with the business as a whole and determines the likelihood of retention and referral;
Hotjar: This is a User Experience tool that allows you to analyze heat maps, view user navigation recordings, perform user surveys, among other features;
Google Analytics: While obvious, Google Analytics has to be present here (and it is also used by traditional marketers);
Google Tag Manager: While traditional marketing looks at macro numbers, Growth wants to measure every detail, so it has Tag Manager domain.
Of course there are many other tools, but we have selected these both for their practical utility and for the didactic illustration they bring of the activities of a Growth Marketing professional.
Conclusion: Do All Businesses Need Growth Marketing?
The most direct answer is: NO.
Growth Marketing was created by specific new business needs, which have a higher degree of innovation, deal with extremely volatile business environments and seek high growth rates.
In fact, there are many reports from large and traditional organizations that, when trying to deploy Growth, have had great failure, as their organization repelled innovation initiatives.