Why Is Growth Hacking Important For A Startup?
One of the most difficult challenges any startups face at the early stage is to get the word out there and cultivate a loyal customer base. At an early stage of a startup, it’s nearly impossible to compete with big brands and more established companies via traditional approaches, which means that you need a creative tactic in order to grow your company quickly and effectively. In other words, reach a larger audience within a short span of time and little money and thus the growth hacking came to light.
Growth hacking is how startups like Spotify Turned Free Music into a $10+ Billion Valuation. It’s howSnapchat Reach a Multi-Billion Dollar Valuation and how Airbnb became Airbnb.
Before we jump into discussing why growth hacking is important, let’s see look at a brief description of what growth hacking is and who a growth hacker?
Growth hacking is a process of rapid experimentation across marketing channels and product development to identify the most effective, efficient ways to grow a business. As for Sean Ellis (CEO at GrowthHackers.com. key early growth/marketing exec at Dropbox), “a growth hacker is a person whose true north is growth.”
With all these said you might ask “why growth hacking is so important for a startup?” Well, here are few points on why.
Let’s say you’ve launched your product or the service, and people seems to like it. Good for you, now you know it works, but you are going to need a lot more customers to become an actual business. And this is where growth hacking comes in. You can use many strategies that you can find in growth hacking to acquire more customers for a lower cost with long term sustainability.
Customers might show up once or now and again, but your customers sometimes need to be reminded about your product or the service until they actually get caught. Different behaviors on the site or within the product should create different “pushes” that might show up as an email in their inbox, something on social media in their feed, or through personally targeted ads.
It’s well-known fact that growth hackers have very analytical minds. And they tend to dig deeper into anything to find what they want. The dig into the data across the internet to find the exact target audience. It also makes it possible to go beyond the general demographics of the target market and look into data points like their internet usage, the devices they use, what they are looking for and their buying triggers. With all these information growth hackers create the best strategies for the business to grow.
If you are going to create a marketing campaign for your business creativity of that campaign is going to be a key component. And if you have a growth hacker in your business team, you’ve hit the jackpot. Unlike traditional marketers who look at traditional channels and don’t get creative with distribution and figure out automated paths to conversion, growth hackers always think outside the box and always try identify new distribution possibilities that could help create best campaigns.
As mentioned earlier, traditional marketers tend to be less creative and stick to figure out automated paths to conversion. Growth hackers aren’t that kind of people. They never take no for an answer. They will always to come up with something new. They will try to reach uncharted territories and most importantly they will identify untapped opportunities in the market that your product or service can easily penetrate. And growth hackers will create out of the world marketing strategies that will blow away your target audience.
If you have paid attention to what we’ve said you can easily understand why growth hacking is so important for a startup. If you are an owner of a startup and thinking about hiring someone for marketing we recommend that instead of going for a traditional marketer try to go for a growth hacker. As a startup, you need to grow as business as fast as you can and having a growth hacker in your team might be your best option.