Growth hacking is a form of outside-the-box marketing tactic that focuses on exponential user acquisition at a significantly lower cost than the competition. It is often associated with startups and smaller companies that are trying to quickly gain a foothold in a crowded market; however, growth hacking can also be used by larger businesses too.
The role of a ‘Growth Hacker’ is knowing how to exploit new opportunities for growth in areas such as conversion optimization, A/B testing, search engine optimization, email marketing, viral marketing, content marketing and much more.
The central equation used by every growth hacker is Product + Growth = Impact.
What are examples of growth hacking?
When PayPal first started, they offered $10 for each customer who invited a new user who accepted the invitation. The new user received the same bonus. This company gained 5 million customers by 2000 and sold to eBay in 2002 for $1.5 billion in eBay stock.
Dollar Shave Club
The subscription box startup Dollar Shave Club spent $4500 on YouTube Ads to promote its $1 monthly razor blade service. The video went viral over 72 hours gaining over 25 million views. Unilever acquired Dollar Shave Club for $1 Billion in 2016.
The first massively popular free email service went viral without spending a dime on advertising. They put an email signature at the bottom of everyone’s email that read, “P.S. I love you. Get your free email at Hotmail”. Just 6 months later, they had 1 million users. A year after, they had 10 million users, and Microsoft acquired Hotmail for $400 million.
In conclusion Growth hacking is a powerful marketing strategy that can help businesses of all sizes quickly and effectively drive growth and reach new customers. You must be willing to try a variety of marketing tactics and techniques to see what works best for your business and then find a way to scale those efforts.
While growth hacking may not be the right strategy for every business, it can be an effective way for companies to stay ahead of the competition and drive long-term success.
Ultimately, the key to success with growth hacking is to be constantly testing and learning and to be open to trying new things and taking calculated risks in order to achieve your growth goals.
Watch the video below from our show Good Morning Marketers, where we share more examples of growth hacking.