What is Growth Hacking and how can you boost the growth of your business?
Growth Hacking is a strategy that seeks to rapidly increase the volume of users, revenues or impacts of a company with the least expense and effort possible. Growth hackers are, therefore, specialists in the growth of startups that use various techniques such as search engine optimization, website analytics, online advertising, A / B tests or social networks to sell products or services in an effective and gain exposure quickly.
EXAMPLES OF GROWTH HACKING
This is how Dropbox works. The tool offers greater storage capacity for those users who follow instructions that, in some way, help it grow. For example, if you refer the tool to several friends or if you fill all your profile data.
When they demanded all United States users to register through Facebook. That made it very easy to share the songs among friends, but they also redirected users directly to a page where they heard the song and suggested they join Spotify. This possibility of registration has also improved the user’s experience in the tool since they can see what their Facebook friends listen to and even share it easily and at the moment.
OTHER GROWTH HACKING TECHNIQUES
– The freemium model. It is the favourite of startups and consists of offering a free version of the product or service with certain limitations that can be accessed through a subscription payment to another plan. Spotify, Semrush, Dropbox and almost all the tools work like this.
– Exclusive invitations. In beta versions, for example, when an application is launched. Thus, they are offered the possibility of being a beta tester and invite five or a specific number of friends so they can also try it. The social network Ello used this technique and obtained 35,000 requests per hour.
– Gamification. Use the mechanics of the game to encourage customers to perform certain actions and thus boost the product or service. For example, LinkedIn shows the percentage of the profile that is complete to encourage users to fill in all the data. You can also offer prizes or show a leaderboard.
– Content Marketing. This allows attracting users or consumers more quickly. If you offer content of different types: blogs, podcasts, e-books, webinars, guides, infographics, video/audio presentations, articles. Do not forget to take advantage of other people’s audience. If you invite someone to write on your blog or make a podcast, you will reach your audience and have the opportunity to expand yours. And keep an eye on SEO if you want to reach more and more people.
– Campaigns in social networks. Share all that content through social networks like Facebook, Twitter, Tumblr, etc. But avoid spamming, optimize campaigns very well and study who you are targeting and what is the best way to present yourself to him. And, if you can, get in touch with opinion leaders, as they can mention your audience.
– Contests. This is very useful if, for example, you need to grow your list of emails to get your content or your product / service. Offer prizes that are truly meaningful to your audience and, in return, have them share your Facebook page or the web.
– El modelo freemium. Es la favorita de las startups y consiste en ofrecer una versión gratuita del producto o servicio con ciertas limitaciones a las que pueden acceder mediante un pago por suscripción a otro plan. Spotify, Semrush, Dropbox y casi todas las herramientas funcionan así.
HOW TO MEASURE GROWTH
First, you must establish your own KPIs, that is, the variables that are going to be taken into account because they indicate how the techniques you applied are working. These are some indicators that you can observe:
1. Viral coefficient
The viral coefficient is the number that indicates how many new people are attracted thanks to existing users. If each 100 own users bring 200 new ones, the viral coefficient would be 2. And, therefore, it is working.
The users are organized in cohorts, that is, depending on the month in which they registered, they will be in one cohort or in another. This will make it easier for you to observe the evolution of enrollees, for example, or the rest of KPIs month to month with much more ease.
They are similar to the cohorts, but instead of organizing the users by the registration date it is based on other factors: those that you decide. You can organize them according to gender or age, among others.
4. Multivariable test
Using the A/B tests and they are those that are carried out on the product and only some of its users see it. With it you can compare which version gives the best results.
5. Cost of Customer Acquisition (CAC)
That amount of money that is needed to obtain a new client. It is important that you know how much each customer costs in different channels. For example, if you spend € 500 on FacebookAds and that gives you 5 new clients, then each costs you € 100 (CAC). This way you can assess which channels are more efficient in attracting users and in which to invest more.
6. Customer Lifetime Value (LTV)
The lifetime value of the client is the amount of money that a user contributes throughout the life of the product. An example: If you offer a service for € 150 per month and each customer stays a minimum of 1 year, then the LTV is 150 x 12 months = € 1,800 per customer.
You should also value the CAC and the LTV as a whole, so you can find out which segment of users have a higher LTV and you can afford a higher CAC to get more customers from that particular segment.