Something about the figure of growth hacker
“The growth hacker will be one of the most requested job in the coming years”
A year ago I heard for the first time the word growth hacker. Intrigued by the topic I decided to buy the book by Raffaele Gaito, one of the leading experts in growth hacking in Italy.
Growth hacking has only been around for a few years, but it’s already catching fire. Every startup is looking for growth hackers. The reason is obvious: everyone wants to grow very fast and acquire millions of users and dollars in revenue.
Due to the startup culture, they often have to use analytical, inexpensive, creative, and innovative methods to exponentially grow their company’s customer base.
What is Growth Hacking?
The growth haking was born in 2010 and the first to talk about it was Sean Ellis, the person who turned Dropbox into a billionaire company.
Growth hacking is a process of rapid experimentation across marketing funnel, product development, sales segments, and other areas of the business to identify the most efficient ways to grow a business.
First of all, growth hacking is an approach, a mindset, a philosophy.
There is not a magic tool, not a study case to follow or “how to grow your business in 5 step”.
The failure become an important element because to fail means acquire information, increase your knowledge and improve the following steps.
Every decision must be supported by the data.
Multidisciplinarity and curiosity are the arm of a growth hacker.
How does the growth hacking process work?
Experiments and tests are the basis of the process. The experiments must be measurable, repeatable and scalable.
Which are the differences between the traditional marketing and growth hacking?
The growth hacking is creative, flexible, expansive and fast.
To make a simple parallel we could say that there is not the concept of “campaign” in growth hacking but “experiment”.
In the first case the available budget is allocated to the campaign which will have a duration and, in the end, its results.
In growth hacking, on the other hand, the budget is broken up into small “mini-budgets” to conduct a series of experiments (which in 90% of cases will fail) and when the winning experiment has been found, double down is used and the big budget is used!
The advice is to combine theory and practice (this is what I call the Study-Try-Wait method), regardless of the level of knowledge we have of the material.
The growth hacker uses to work with the funnel of the pirates!
What are the main elements to grow the business?
Every single phase must be optimized.
The first step is represented by the acquisition, the first point of contact with the customers.
You can bring new customers through these channels:
- social advertising;
- mobile app;
- traditional channels, tv, radio.
During the activation the users make an action.
The main actions carried out by the users usually are:
- registration to the site or newsletter.
Is the amount of incremental revenue that you can generate from a given client.
The goal is for your customers to become “sticky.” When you think about your Customer Acquisition Cost (CAC) from the Revenue stage, that is a fixed cost.
From this point forward, additional revenue is “free.
When a user is loyal we can think about how to get them back. The actions are:
- promo code;
- affiliation link;
- invite a friend.
The last step is the revenue. Without the previous step is totally stupid think about the profit and revenue!
Here an interesting interview to Luca Barboni, an italian growth hacker.
You can start studying, reading books, taking online courses, taking classes in the classroom, and so on.
Then start working on a concrete project! 🙂
Just do it!