An Introduction To Growth Hacking
What is growth hacking? how does someone hack growth? The answer is very simple to write down, yet horrendously challenging to implement. You hack your own growth by building a product that people want to use. After you finished building that product, you make sure that you continue to optimize it, cater to your users feedback, and spreading your product out in the market to the right people at the right time. Sounds easy? its not.
Here is why:
To achieve scalability and growth in the most efficient way, you first have to have a product that people actually will want to use. You then have to design core features in this product that is sticky; that will make you as a user always reaching out for your phone or laptop each free second you have (Facebook, Snapchat, Instagram, anyone?). Needless to say, your designers have to build something ridiculously simple, yet visually attractive. Your development team on the other hand are tasked to bring this to life, without these pesky bugs and crashes (assuming you are a tech company). When you are all set to launch, you have to start pushing this product out to the masses- without spending more than the ROI of your active users. Let’s do some math:
To achieve scalability and growth in the most efficient way, you first have to have a product that people actually will want to use.
Lets assume you have a new mobile social game coming out. And lets assume that you have 100 MAU (Monthly Active Users- someone playing your game at least once a week). Lets also assume that you targeted 2000 users in your marketing campaign (2% conversion rate- not bad!). Your metrics show that your ARPU (Average Revenue Per User) is at around $0.5 which means that you are making around $50 from your MAU. This example shows you that if you have spent anything more than $50 in your marketing campaign- you are not a good growth hacker. Why? because you spent more than you will earn.
There are more to growth hacking than just optimizing numbers for marketing and user acquisition campaigns. This is the fundamental difference between traditional marketing and growth hacking. Referring back to the example you read above, what could have been done apart from optimizing the marketing channels? A lot. Start by your product. How can it be more sticky? more addictive (scary!)? How can that % from target audience to active be improved? If there several opinions regarding a certain feature or design internally, why not A/B testing? what tools are you using to measure performance and track conversions? the list goes on and on…
At breadcrumbs studio, our clients and partners often ask us if it is even possible to introduce the concept of growth hacking even after a product has been launched. The answer is Yes! growth hacking is a mindset. It is a collaboration of everyone in the organisation following the same goal: efficient scalability that is driven by metrics. While it is not uncommon that radical changes could be needed in order to start achieving scalability efficiently- but it is most certainly rewarding.