Many speakers and entrepreneurs are talking about growth hacking. To understand the growth hacking, let’s check the successful businesses that boomed during the past 10 years.
In its early days, Airbnb had almost no traffic. To solve this problem, their team used Craiglist to attract new clients. They introduced a feature in their platform called “dual posting”. This feature enable advertiser to post his ad on Craiglist in addition to Airbnb. After having this feature implemented, they attracted huge traffic without paying a penny. Once Craiglist discovered this issue, they stopped it and prevented any other system from posting on their platforms. Today, Airbnb is one of the biggest housing firms around the world.
Michael Dubin, Dollar Shave’s founder, made a video for promoting their blades. Although this video costed few hundreds of dollars, it went viral. It got 19 million of views in just few weeks. Today, no one can use this technique as social media has changed their algorithms. It’s very rare to find any commercial video going viral.
Posting ads to attract new users is expensive and won’t lead to exponential growth. That’s derived Dropbox to find a new way to attract new clients. It relied on giving incentives to their existing clients if they convinced their friends to join Dropbox. Today, they have over 500 million users and worth around $12 billion in 2018.
What’s growth hacking?
As you can see, most of the marketing techniques that were successful few years ago cannot be used nowadays. Growth hacking is a process of performing rapid marketing experiments to find the most efficient ways to grow. Growth hacking isn’t a marketing approach, it is a way of finding new channels that can lead to exponential growth.
Each startup in the growth phase should have its own growth hacking team. This team should include developers, marketeers, testers, and product managers. According to Sean Ellis, founder and CEO of Growth Hackers, this team should carry on one experiment per week. In addition, they should follow the below process during each experiment. We will go through each step in more details.
Innovation is the key factor of growth. It’s always recommended for the growth hacking team to have an ideation workshop every few weeks. Participants in this meeting should use lateral thinking rather than traditional brainstorming. This can be done by introducing a random idea to brainstorming and see how it relates to the problem.
Once you have plenty of ideas, your team can rank them according to three factors. These factors are the impact of the idea on the business growth, its ease of execution, and the certainty about its results.
The third step is to pick the idea with highest score to execute. Brilliant ideas usually need the efforts of all teams in the company.
Whether the experiment was successful or not, your team must come up with what they learned from it. By doing so, your team will keep improving in the next experiments wand will not repeat the same mistakes.
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