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Growth

Demand Generation

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How To Leverage Growth Marketing

How To Leverage Growth Marketing

Traditional marketing is where brands broadcast a one-size-fits-all marketing message describing the product’s features. It is expensive, broad, and doesn’t consider the unique requirements of the customer.

This doesn’t work well for budding businesses that are targeting a particular niche and have a limited marketing budget.

Enter growth marketing

Growth marketing focuses on sending personalized customer-centric messages to the target audience explaining how the product will give them the value they are looking for.

In this article, you’ll learn what makes growth marketing unique, its strategy and characteristics, and how you can leverage it.

Growth Marketing Vs. Regular Marketing

Growth marketing attracts prospects, keeps them hooked, and turns them into loyal buyers. With techniques such as content marketing and lead nurturing, customers are nudged through the funnel until they make a purchase. 

Various marketing channels are auto-optimized through the latest tools and data-backed processes for sustainable growth. The primary advantage of growth marketing is that it nurtures customer relationships and increases your average customer lifetime value.

Traditional marketing approaches include ideation of marketing operations, publishing the ad copy and design, implementing Call-To-Actions (CTAs), outlining the ad spend for the campaign, and so on. 

All these efforts follow a traditional “set it and forget it” strategy. This strategy is great for increasing brand awareness by focusing on the top of the sales funnel.

The image below highlights the difference between traditional and growth marketing.

Source: Mondial Trends. A graphic showing the differences between traditional and growth marketing.

What a Growth Marketing Strategy Includes

Market Penetration

Growth marketers exclusively focus on the niche where you offer products/services or look for potential customers in your competitors' niche to penetrate the market better.

This growth hacking technique pushes brands to look for differentiators. Here, growth marketers answer two specific questions:

  1. What sets you apart from your competition?
  2. What are the specific areas you are better than your rivals?

Strategic Collaborations and Partnerships

Growth marketing teams facilitate rapid growth by finding and teaming up with other brands that offer products your target audience uses — for instance, telecom providers partnering with smartphone manufacturers.

Apart from keeping customer acquisition costs low, this strategy could get you lots of new customers and result in sustainable growth. Sometimes, you might have to create new products or services to form a partnership.

Market Development

This strategy involves running growth marketing campaigns where you advertise the products or services to new markets to facilitate demand generation. It is done in two ways:

  1. Targeting new niches and buyer personas.
  2. Moving to new geographic regions.

Product Development

Your product development growth strategy has to be tailored to your brand’s specific needs. To attain rapid growth, you should diversify your marketing efforts to find creative solutions in the following ways:

  • Product Updates. Build on what you have (this is also great for customer retention). 
  • New Products. A great way to enter new markets and target different user personas.

Characteristics of a Growth Marketing Strategy

Data-driven

Before growth marketers invest in a new marketing tactic aiming for rapid growth, the idea has to be backed by data. As growth marketing tactics involve taking risks, intuitions and “do this because competitors are too” have no place.

Read: “How to Create a Successful Growth Marketing Strategy.”

Product Focused

Your business needs to consistently improve its product to remain competitive in the market. Whether it is adding more features or functionalities, your product needs to evolve with the changing needs of your target audience. 

Growth marketing facilitates this by collecting data that can guide this product development and keep your target audience updated about the values you offer.

Limited fear of failure

Apart from being data-driven, the high success rate of growth marketing can be attributed to the diversification of efforts. With multiple marketing strategies at play at once, the best growth marketers keep a close eye on the numbers and scale up the efforts that have the highest marketing ROI.

Storytelling

Considering our endless appetites for stories, growth marketers use a story where a person with similar problems to the target audience gets their problem solved with their product. This makes the brand’s message more realistic and relatable, motivating more prospects to make a purchase.

Retargeting

Retargeting reminds your website visitors, prospects, leads, and customers about the value your product offers. This also keeps the customer acquisition costs low.

Should You Hire a Growth Hacker or Outsource Growth Marketing to an Agency?

Having an in-house growth marketer has the following pros:

  1. They will be familiar with your product and processes completely.
  2. 100% dedication towards your brand growth.
  3. You can gain a lot of insights into your industry.

However, it is challenging for the following reasons:

  1. It's expensive to hire new professionals, get new tools, and set up new growth marketing strategies.
  2. After some time, they could run out of ideas by falling into a "creative rut".
  3. You still have to pay your growth marketing team even if you pause your strategy. 

Growing brands with a limited budget risk a lot in this scenario.

In these instances, outsourcing growth marketing to an established agency such as Matter Made is ideal because:

  1. You get experienced, accountable professionals.
  2. It’s cost-efficient; pay until you are leveraging their services.
  3. You will be kept in the loop at every stage through timely reports.
  4. You can reinvest the saved resources elsewhere.
  5. You get expertise from successful growth marketers. 

Growth Hacking, Demand Generation, and Matter Made

Matter Made has helped product-led companies like Dropbox and Loom achieve hypergrowth through demand generation, product-led growth, and bespoke growth strategies

Our seasoned marketing team can help your brand achieve similar results.

Interested in knowing what a growth marketing strategy brings to the table for your brand? Let’s talk.

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Demand Generation

Growth

How to Track the ROI on Your Growth Marketing Campaign

The Next&Co Digital Media Wastage Report shows that 41% of the average company's marketing budget is wasted, with wastage being the highest among ecommerce, retail, and finance companies. 

Calculating your Return On Investment (ROI) is perhaps the most important thing you can do to keep your growth marketing spending on track. Knowing your ROI will help you:

  • Make value-conscious choices
  • Prove the value of your marketing to leadership
  • Justify your marketing budget for next year 
  • Choose which marketing channels to invest in 

This article will show you how to calculate your growth marketing ROI step-by-step.

Step #1. Set Up Ways To Track Your Marketing Success

You can't calculate marketing ROI without knowing what "return" you are getting. So the first step is to set up ways to track your marketing successes. 

Common ways to monitor your digital marketing campaigns include:

  • Google Search Console. Google Search Console helps you monitor your website's performance in search results. 
  • UTM links. You can use UTM codes to track how your website visitors browse on Google Analytics. 
  • Facebook Pixel. Facebook Pixel will help you track conversions from Facebook ads.
  • Social media marketing analytics platforms. Platforms like Buffer Analyze, Sprout Social, Hootsuite, and Zoho Social can help you analyze your social media marketing Key Performance Indicators (KPIs). 
  • Ecommerce analytics tools. Platforms like Hotjar, Kissmetrics, and Optimizely can help you analyze ecommerce KPIs. 
  • Customer Relationship Management (CRM) tools. CRM tools like HubSpot, Salesforce CRM, SAP CRM, and ZOHO CRM can help you analyze customer interactions.

It's best to set up these tools before you start publishing your marketing efforts.

Step #2. Gather Data

Next, sit back and start gathering data. It's best to monitor your marketing for several weeks or months if possible, as a longer data collection period will ensure your results aren't skewed by outliers.

Step #3. Calculate Your Marketing Costs

Then, calculate your costs. 

You'll need to take two types of costs into account:

  1. Direct costs

Direct costs are expenses that have a clear price tag and can be directly tied to your marketing and sales funnel. Marketing software, Paid-Per-Click (PPC) ad spending, equipment, marketing staff salaries, and freelancers are all direct costs. 

  1. Indirect costs

Indirect costs are expenses that aren't directly tied to your marketing but are still essential to make running the marketing department possible. Rent, electricity, and salaries from non-marketing staff (like receptionists or administrators) are all indirect costs. 

You may need to consult your accounting department to figure out your indirect costs. Once you have your figure, add it to your direct cost figure to get your total marketing spend. 

Step #4. Calculate Your Marking Returns

Now it's time to calculate your marketing returns, and there are several approaches you could take here. 

If you want to simplify things, you could take your entire net income figure for a given period and attribute 100% of it to marketing. 

Or, if you want to be more precise, you can go through your marketing channels one-by-one and calculate how much revenue your company earned as a result of it. This is easier with some channels than others. Some ad analytics, paid media, and referral marketing tools, for example, will help you calculate how much revenue your brand earned from ads. Sales from social media marketing and content marketing, on the other hand, are harder to attribute. 

Whatever method you choose, you should finish this stage with a clear figure.

Step #5. Execute the ROI Formula 

The final step in measuring digital marketing ROI is executing the following ROI formula:

ROI = (marketing revenue - cost of marketing) / cost of marketing

For example, if your total revenue figure was $45,400 and your total marketing costs were $12,300, your ROI would be 2.69.

If your ROI figure doesn't look right, make sure you have only included marketing returns and costs from a single, clearly defined period (like quarter one or 2022, for example). A common mistake marketers make is including a year's worth of an expense rather than just the cost in a set period. 

Other KPIs to Watch with Growth Marketing 

  • Customer Lifetime Value (CLV) = average order value x purchase frequency rate x average customer lifetime
  • Customer Acquisition Cost (CAC) = (cost of sales - cost of marketing) / number of new customers acquired
  • Conversion rate = (total conversions / total visitors) x 100
  • Cost-Per-Click (CPC) = total amount spent / total clicks
  • Open Rate  = (number of emails opened / number of messages sent) x 100
  • Average Transaction Value (ALV) = total sales / number of transactions

Tracking other KPIs and presenting them alongside your marketing ROI can give the ROI figure more context. It can also help you explain fluctuations in your ROI across multiple periods. 

Calculating Marketing ROI, Growth Marketing, and Matter Made

Measuring marketing ROI will help you quantify your growth marketing efforts, build a strong PLG funnel, and analyze your digital marketing campaign efficiently. Naturally, knowing your marketing ROI can help your growth marketing strategy succeed long-term.

Want to embrace growth marketing but don't know where to start? Let's talk. 

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