Before exploring why growth hacking matters within a startup, let’s take a step back.
How often do we open LinkedIn and see titles such as Growth Hacker, Growth PM or Head of Growth among our contacts?
These roles are becoming increasingly common and play an important part in product and business growth. We can think of growth hacking as a form of organisational innovation that brings product development and marketing together.
Any entrepreneurial environment can benefit from a healthy dose of growth hacking.
Call it a philosophy, a strategy or a mindset: there is no single formula for doing growth hacking perfectly. What does exist is a wealth of guidance, data analysis, real-world testing and relevant case studies.
The growth hacker’s role and the origins of the term
A growth hacker aims to find the most effective way to grow a startup’s business. Product development, data analysis and digital marketing sit at the heart of that approach.
Growth hacking emerged in Silicon Valley. If startups embody speed, growth hacking embodies growth.
Let’s examine the term itself:
— Growth: increasing the reach and success of the business.
— Hacking: the word comes from computing, but here it refers to creativity, problem-solving and thinking outside the box. These skills and this mindset are essential to the role.
Lead acquisition
Product growth presents a difficult challenge. Almost anyone can launch a product through e-commerce; getting it into customers’ hands is another matter.
Acquiring leads is the real challenge, particularly leads that match the intended target audience. Social proof—the number of other people using a product—can also influence whether someone buys and uses it.
Lead acquisition is therefore fundamental to startup growth. Finding the right distribution channel, whether LinkedIn, Instagram, Facebook, Twitter, Discord or another platform, matters. Engaging users matters even more.
User engagement
To encourage people to buy a product, we need to consider the emotional involvement it creates: user engagement.
The product should generate positive emotions and provide an enjoyable experience. These are important foundations for retention and long-term business sustainability.
Key elements include attention-grabbing content, interest, curiosity, visual appeal, originality, novelty and consistent campaign messaging. The visual impact and interactivity of the product also play a central role.
People want to make the most of market opportunities. Growth hackers must use available information and channels strategically to guide users through an experience that rewards both them and the startup.
Startups establishing themselves need to earn prospects’ trust. They must manage their reputation and the expectations created by content marketing, even before a prospect makes direct contact.
Understanding customers is essential: their actual needs, rather than those imagined by the growth hacker, and the motivations behind them. Studying user behaviour helps shape a product that meets those needs and creates an engaging experience. Lead acquisition is both critical and sensitive for a startup.
Three steps to stronger user engagement
Identify the right moment
Sometimes it is about finding the right moment. According to Elliot Shmukler, described here as responsible for product and growth at Wealthfront.com, the first step is to identify users’ “aha” moment: the point when they understand the product and its benefits. Discovering that moment is the growth hacker’s task.
Convert through email
Email offers a direct way to reach customers and remains an important, often preferred channel for communication and engagement.
Nurture active users
Active users are key advocates for the brand and the experience it provides. Their positive feedback can encourage others to purchase.
The importance of SMART goals
In a growth-hacking process, defining objectives and deciding which metrics to monitor are essential.
Alongside measurement, SMART goals help a business scale by showing whether its marketing strategy is producing meaningful results.
How do you choose SMART goals?
A SMART goal should meet five criteria:
• Specific: is the objective tangible and clear about what should be achieved, how and why?
• Measurable: can progress be expressed numerically?
• Achievable: is it realistic given the resources available?
• Relevant: is the objective important enough to justify investing time and money?
• Time-based: does it have a defined time frame?
Once these goals are defined, identify the key metrics needed to implement an effective strategy.
A successful strategy: the Spotify example
Spotify offers on-demand music streaming from record labels and independent artists.
From its launch, users had high expectations of Spotify. Its freemium business model combined premium subscription revenue with advertising. When it launched in the United States, access was initially invitation-only, and many celebrities began discussing Spotify on Twitter.