What is Growth Marketing?

Growth marketing is using a data-driven approach to optimizing the entire sales funnel. A growth marketer runs experiments to improve attracting, engaging and retaining customers.

Growth marketing experiments focus on specific metrics that can produce rapid growth.

Key Areas for a Growth Marketer

* Determining areas of opportunity and testing solutions

* Prioritizing growth experiments

* Conducting experiments and measuring results

* Creating new experiments based on findings and strategic analysis

A common framework for applying growth marketing to the business is the AAARRR model (known as pirate metrics): Awareness, Acquisition, Activation, Revenue, Retention, and Referral.

Growth Marketing vs. Growth Hacking

Growth hacking is based on speed, experimentation, and a focused list of marketing techniques for rapid market growth.

Growth marketing widens its toolset with slower tools such as SEO and branding while focusing more on sustained growth.

Both disciplines rely on good product-market fit, data, and target revenue growth through customer acquisition, retention, and monetization.

Performance Marketing vs. Growth Marketing

Performance marketing specializes in maximizing ROI on paid channels such as search and social ads. Performance marketers are experts at generating leads, sales, and clicks with paid media channels.

Growth marketing is about creating compound growth within any segment of the buyer’s cycle. A growth marketer will nurture existing leads and customers for repeat purchases and higher average-order-value (AOV).

Digital Marketing vs. Growth Marketing

Digital marketing uses digital channels such as content marketing, SEM/SEO, email marketing, and social media to create new leads and drive brand awareness. Digital marketers build multi-channel touch points to help businesses achieve their marketing goals.

Growth marketing addresses the entire sales funnel and tries to optimize key touchpoints along the buyer’s journey. Out-of-the-box experiments help with the single focus of business growth.

Traditional Marketing vs. Growth Marketing

Traditional marketing is usually pre-planned with annual planning. Many strategies are company-centric initiatives, like public relations, and KPIs fall under ego-metrics like impressions, website visits, and brand searches.

Growth marketing is data-driven, agile, and builds on consumer feedback. Growth marketing focuses on growth and is adaptive, covering all stages of the sales funnel.

What are Pirate Metrics? AAARRR

  • Awareness: brand-building with tactics like social media outreach, SEO optimized content, ToFu offers. (Example experiments – frequency of blog posts, social media strategy, etc.). How do you reach people?
  • Acquisition: generating leads to net new customers (Example areas – gated content, chatbots, freemium sign-ups). How many people visit your website.
  • Activation: getting people to use your product or service. (Examples – sign-up, install an app, post first comment, etc.)
  • Revenue: making the company money. Who pays and how much? (Examples – pricing, upsells, cross-sells, etc.)
  • Retention: keeping customers happy. How many people come back. (Examples – personalization to find more value in the product, customer service)
  • Referral: brand ambassadors that help promote your business. (Examples – rewarding customers for referrals)