What Is Growth Marketing? Best 10 Examples

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The growth marketing strategy is based on A/B testing, which applies to any online business with targeted traffic from different channels. It is appropriate to implement it when promoting online stores, company websites, and blogs. It is considered effective to use growth marketing in startups (for SaaS startups, MRR growth and a decrease in the churn rate are important) and B2B and B2C companies aimed at rapid and large-scale growth. Among the goals: minimum – improving micro-conversions, maximum – macro-conversions.

What Is Growth Marketing?

When tested in practice, growth marketing is based on experimentation with traditional marketing tools, and marketers identify the most effective ones. They can be web pages, design elements, or traffic channels. Growth marketing is used to attract the maximum target audience with the minimum cost of marketing campaigns.

Growth marketing focuses on building loyal relationships with new users and retaining existing customers. In this, marketers are helped by a scientific approach and a deep analysis of all of the studies and experiments.

Repeated testing of marketing tools is almost always associated with failures in certain areas. In this case, the specialist changes the strategy and starts launching new campaigns, searching for the most effective one.

Why Is Growth Marketing Important?

The conservative style of growth marketing is focused on lead generation. Lack of experimentation with the inclusion of alternative tools causes missed opportunities. The use of growth marketing is valuable because it allows you to integrate new methods of attracting and retaining an audience into standard marketing models.

Growth marketing is important for finding the most accessible and productive lead generation channels. In addition, it helps to perfectly interact with the target audience at all sales funnel stages.

Loyal customers are always more loyal, so it’s easier to get them to buy new products from your company. Old customers spend 50% more than new ones. They can become a source of new customers because of their trust in the company and positive experience in the past. Buyers share their shopping experience by inviting friends to use your products.

Data processing and deep real-time analytics give the marketer a wealth of information to optimize their marketing strategy. Therefore, growth marketing is the most accurate and promising solution for a modern company’s rapid and effective development.

How Can Growth Marketing Be Implemented?

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Using growth marketing is relevant if you have a goal to achieve a certain result quickly. To optimize your marketing activities, you will need a range of tools for collecting and processing data, setting up advertising campaigns, and analyzing and monitoring the effectiveness of communications.

To track the effectiveness of actions, set clear performance boundaries and compare campaign milestones against your goal.

In the process of implementing growth marketing strategies, it is important to go through the following steps:

At the start of events, you can take competitor data as a basis, but consolidate your data for effective analytics in the future. This will help you focus on the most effective lead generation tools and abandon lead sources that are useless for your brand (niche).

Test different interaction options with your target audience to achieve the best results in attracting and retaining your customers.

Top 5 Growth Marketing Examples

Choosing the most effective path in growth marketing is the most beneficial when based on the needs and expectations of the target audience. Below, we have described five of the most famous examples of the successful application of growth marketing.

  1. Dropbox, which provides cloud-based content storage, has relied on a referral program in its growth marketing. The referral was given additional virtual space for referring a friend to their cloud storage. This proposal helped increase the number of registrations in the system by 60%. The growth of disk space gave the user more convenience and kept them from switching to competitors.
  2. Airbnb, a property rental company, has built its growth strategy around improving the quality of apartment photos. Over time, the site founders were able to bring in outside professionals to shoot to present the property attractively. In addition, the founders of Airbnb used the database of the Craigslist service to expand the reach of the target audience. This was the reason for the explosive growth in the popularity of Airbnb.
  3. After the launch of the Gmail mail service, user registration was available only by invitation. The popularity of the online messaging service, the new service’s convenience, and limited access contributed to the explosive growth of registrations in the system. At the same time, Google used a similar method in its products, such as Buzz and Google+, which did not yield the same high results.
  4. The social network Instagram attracted its users with the functionality and simplicity of the interface necessary for the target audience. This was enough to keep the number of registrations from the moment the project was launched.
  5. Financial service PayPal offered material benefits for attracting their colleagues or relatives to register. However, the move cost the company about $60 million, compared to a total PayPal valuation of $46.6 billion at the beginning of the marketing campaign. At the same time, social networks practically did not play a role in promoting the brand. Instead, users shared information via e-mail, blogs, or personal communication.

Growth Marketing Case Study

Studying other companies’ cases helps the marketer uncover hidden growth opportunities within their brand and inspires bold experiments. We have selected the most interesting cases from well-known companies that have made full use of the possibilities of growth marketing.

Nespresso

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On the wave of coffee’s popularity back in the 1980s, Nespresso offered customers the ability to drink a high-class drink packaged in individual capsules. To do this, customers need a special coffee machine, which can be purchased from Nespresso for just $1 – subject to a subscription to purchase their branded coffee for a year. So, the brand began to earn not on the main product but consumables. One more detail: that is why the company works mainly with regular and loyal customers.

Philips

Growth Marketing-02

Philips changed its positioning in 2011 from just an “electronics brand” to “a manufacturer of products that care about the well-being of customers.” The manufacturer’s website and social networks are aimed at effective e-commerce.

The company turned out to be ready for the pandemic and other challenges due to an optimized website where all of the information is structured and accessible, and page search works following the visitor’s expectations. In addition, a competent paid advertising strategy aims to minimize the cost of attracting the target audience to the site.

Canva

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Canva builds its strategy on people’s desire to create designs with minimum skills. The company offers several options for paid access and a trial period so that everyone can appreciate the convenience of the service.

Canva uses several variations of paid advertising for different target audiences. For example, it declares unpaid use, an abundance of templates, or the ease of working with the service, depending on the user’s expectations.

For more details, see the video https://www.youtube.com/watch?v=eq5YJlgciJY

Nasty Gal

Growth Marketing-04

Vintage goods service Nasty Gal began its history on eBay and later acquired its own website. A slowdown and then almost a standstill soon followed the initial rapid growth of web page visitors coming from social platforms. As a result, Nasty Gal conducted a series of tests, which reached three per week.

After trying out different titles, models, and images, the website got better each time. Finally, testing led to a resumption of growth in site visitors and, accordingly, increased profits.

Slack

Growth Marketing-05

Slack entered the market with an innovative product, so training and familiarizing users with the new messenger for business has become the main focus of marketing activities.

The growth of users from 15,000 to more than 2 million is due to the functionality demanded in the business environment – collaboration in files and search synchronization. Today, the conversion from the free version of the software to the paid one is about 30%.

View the company’s case at https://www.youtube.com/watch?v=x6sSa5NpqUI

Conclusion

It is advisable to introduce growth marketing at the start of the history of a company or startup and after identifying development zones. Designated goals and courage in experiments allow you to unleash the potential of a marketing strategy. And since growth marketing is focused on long-term relationships with customers, in the long term, its use will increase profits while minimizing the cost of marketing campaigns.

Article by:
CEO Andrew Chornyy

CEO Plerdy — expert in SEO&CRO with over 11 years of experience.

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