Growth Hacking: How to Grow a Company More Than Twice Every Year
The topic of growth has always been important for business. If we remove the effect of a fashionable theme, then the focus on growth is a trend. In digital, even in the second or third degree. Nevertheless, the founders and top managers, as well as the teams themselves, have different ideas about this dish and how it is eaten.
But let’s take as a basis the very concept of explosive growth – no matter what approaches and views are used, the main thing is that it works, would give business growth from 100% and higher year to year.
What do you want to talk about in this article? We will debunk several myths about the expectations of all parties and the right tactics that will allow us to act correctly and achieve faster significant results.
Here is what we will talk about:
myths that are better to get rid of;
analytics first and effects calculator;
flat structures, speed of decision making, roles;
growth focus teams vs growth teams separately;
several cases and an example from growth hacking.
Many, starting to work on the task of explosive growth, believe that it will give a magic pill for business.
My personal experience and a survey among QS, SROs, colleagues and those involved in improving metrics suggests that one metric can be expected to grow by 15-20%.
Of course, there are growth points with a potential of + 50-100%, + 200-300%, possibly even + 1000%. But this is very rare. Most likely, you have to find 30-50 growth points from 3% to 30%, which in total will give a very good effect.
Therefore, in the classic GH (Growth Hacking), speed is considered a key success factor. That is, the more you test hypotheses that require reasonable resources, the better, because there is a chance to catch luck by the tail and in a 100-200 experiment draw out a happy ticket, that is, get a solution or improvement with a 30-50% annual growth rate.
Therefore, teams focus on sprints and planning in cycles of one to two weeks – this is the GH approach.
Having a person responsible for growth does not become a panacea. Not only resources are needed, but also a separation of views on growth, joint work with ideas and hypotheses.
My experience suggests that it is better to generate hypotheses within the team, including various business customers, but to further validate these hypotheses for tests at the level of key decision makers. That is, it is better to organize a GH committee, where top managers and key employees will accept hypotheses, understand what is being done and how, what results are expected.
The same committee should accept the test results, because a paradoxical situation may arise – there are tests, there are results, but if you did not participate in the discussion of the idea, it seems to you not real.
Yes, this is psychology, but you won’t run away from the influence of personal perception and group behavior. Need a structure for GH and regular meetings, communications, dedicated resources. Stability, constancy, KPI.
Plus you need to focus strictly on numbers and metrics in the tests, listen to each other, sometimes look at additional metrics, even if you did not plan.
It is necessary to constantly seek new things, to remain impartial. Purely in technical terms, you need to look at different metrics (there may be seven to eight) to understand where there is growth and evaluate the test adequately.
Sometimes you have to look at the test at an angle. That is, it seemed to be negative, but you look at the secondary effect or additional target action – and you see a statistically significant result. New introductory and objective figures have appeared – new conclusions need to be drawn, this is normal – no one is deceiving anyone. It works.
Growth does not go well if your funnel is not digitized in the main stages. Let’s use large strokes to identify typical funnel stages in digital.
The first step is traffic.
You advertise your product or service, bring the user to the site or mobile application. There are conversions and micro-conversions from advertising channels to registration, leads or users (installs) if registration is needed. The better marketing and remarketing in conversions, the lower the CAC (customer acquisition cost).
The next stage after or since registration is onboarding.
The user is watching your product for the first time. He takes the steps that you offer him or that he himself chose. He studies the product, understanding why it is needed. Here we can consider what things he does (events), the trajectories of his behavior (user flow & use cases), the length of the session.
The key metric is one day return after the first contact. This means that the probability of the first purchase increases.
If the product is clear, you are trained in steps and targeted actions, more users will come back.