Growth marketing, or growth hacking, was coined in 2010 by Sean Ellis, who founded Growth Hackers.
Growth hacking, or growth marketing, is low-cost, viral driven engagement that is implemented through strategic A/B testing.
The goal of growth marketing is to continuously connect with your customers with relationship-driven type marketing.
In this article, we are going to be covering a few examples of growth marketing and how it can be applied to your business.
How Growth Marketing Differs from Traditional Marketing
Growth marketing targets customers throughout their entire buyer’s journey from awareness to repeat purchases/referrals.
The term ‘growth’ can be applied to this strategy of marketing because the goal is viral, rapid expansion and customers who referral the service to others.
By referrals, customers can not only gain perks from your company but expand your business as well through referrals.
There are many growth marketing tactics that can be applied to benefit your business and revenues.
Such growth marketing Strategies are offering loyalty points to existing customers, sending email/SMS messages to reach current customers, and utilizing referral programs.
The Power of Existing Customers
Your existing customers are more beneficial to your business than prospective customers.
This is because of the 80/20 rule.
This famous business ‘rule’ states that 80% of your sales or future sales come from 20% of your existing customers.
Growth marketing primarily focuses on your existing customers, which makes this ‘rule’ more powerful than ever.
Compared to traditional marketing that focuses on awareness, Growth marketing primarily focuses on repeat purchases and expansion.
Because a small fraction of your clientele impacts such a large amount of your sales, it is vitally important that you focus on these customers.
By marketing to an existing customer base, you have a higher chance of repeat purchases, which leads to happy customers.
Happy customers are more likely to refer your business, and referrals are the most powerful form of marketing in my opinion.
Due to the fact individuals value the opinions of others to a high degree, having an existing customer enjoy your product enough to refer it to friends/family/colleagues, makes that lead more qualified.
That individual will be more likely to purchase from your company than someone who is a non-referral.
So, how can growth marketing appeal to current customers?
Appealing to Current Customers
There are three common methods business owners can use to ensure growth marketing appeals to current customers:
Loyalty points are a wonderful way to keep your customers loyal to you.
If repeat purchasing is a goal for your firm, which it should be, offering loyalty incentives can keep your customers coming.
For example, if you are a QSR or Quick-Service Restaurant, you can offer a free appetizer, or free drink, to incentivize people to continue purchasing.
By offering loyalty points, with free incentives after a certain amount of time, you have the ability to keep your customers coming with low-cost prices.
This ability to keep continuous contact with your clients is a form of growth marketing.
As of right now, SMS/email marketing is the most lucrative channel available in regards to connecting with your customers.
If you are interested in pushing certain promotions with the hopes of high redemptions, SMS/Email Marketing can convey your promotion better than any other marketing channel.
For example, if your goal is to increase your online sales with a 10%-off promo – instead of doing paid advertising on social media, you can text your current customers directly.
This sends your eCommerce URL straight to your customer’s phone, which has a 98% open rate.
SMS promo has the highest conversion rates of any other channel, and it offers the ability to form a direct relationship with your customers.
The ability to directly contact individuals, in the same way their friends/family does allows for brand awareness and loyalty at the highest degree.
The most beneficial referral programs allow customers to bring a friend to receive an incentive.
This can be in the form of a discount, free service, or future exclusive promotions.
By using low-cost referral program incentives, you have the ability to expand your customer base, while keeping the loyalty of your current customer.
Not only do referral programs bring-in repeat customers, but they expand your CRM.
This includes your ability to directly text/email customers.
By tying all of your marketing efforts together, with a common goal to connect and build relationships with your current customers, your chances of success are much higher.
The key to Growth marketing is to build an on-going relationship with your current customer.
This relationship is frame worked around continuous retention, and repeat purchases.
As we discussed earlier, 20% of your customer base makes 80% of your sales or future sales.
This is vital to growth marketing, which is a very relationship-based form of marketing.
In conclusion, the key to growth marketing is relationship-driven strategies, that will keep your customers loyal to your brand.
Not only does this ensure repeat purchases for you, but it eventually drives organic referrals which expand your CRM, and sales opportunities.
If you are interested in launching any of these growth marketing tactics and would like to implement SMS/Email messaging to your current customer base – you may book a free demo with our Growth marketing Consultant here.