Blog Post

Demand Generation

Growth

Why You Need to Implement a Growth Marketing Strategy

Why You Need to Implement a Growth Marketing Strategy

Budding SaaS brands leverage growth marketing by constantly trying innovative marketing strategies, measuring their efficacy, and scaling them up accordingly to get more paying customers that add to a strong user base.

In this article, let’s look at five reasons why a go-to-market strategy is a must-have for every budding business aiming for hyper-growth.

1. Growth Marketing Improves Your Brand Awareness

The biggest challenge growing businesses face is that only a tiny percentage of their target audience is aware of them. This increases the effort that a brand has to put in to convert leads into loyal customers.

Growth marketing focuses on getting your business on the front page of the internet in the following ways:

  1. It increases your ranking on search results through strategies like link building and PR mentions.
  2. It boosts your social media following by capitalizing on User-Generated Content (UGC) and increasing activity on social media platforms.
  3. It increases the dwell time of visitors to your website through content creation.

All the above advantages get you more qualified leads, boost your conversion rates, and improve your average customer lifetime value.

2. Growth Marketing Increases ROI

Traditional digital marketing tends to have a lower Return On Investment (ROI) as it shares a one-size-fits-all promotional message without considering the factors that make each of its viewers unique.

Growth marketing is just the opposite. It segments the audience based on various parameters such as age and location and shares customized messages by understanding their pain points and requirements.

This personalized approach pulls the prospect closer to your product or service as they can relate to the message on a deeper level. Consequently, your conversion rates and customer lifetime values increase, and your customer journey improves.

An indirect way growth marketing increases ROI is that some of its tactics (like email marketing) can be automated, saving you time and labor.

In the long run, through sustainable growth marketing tactics such as content marketing, the cost of acquiring customers decreases. 

It also becomes more effective, as you can target your approach for each funnel state (as we know some demand generation content works best at certain stages).

Source: Content Marketing Institute. A table showing the effectiveness of each marketing channel at each buyer stage.

3. Growth Marketing Makes Customer Acquisition Easier 

You have ‘acquired’ a customer when a prospect who doesn’t know your business exists eventually purchases from you. For that, they need to find you, connect with you, and trust that you will give them the value they are looking for.

Growth marketing facilitates each of those things.

Through a diverse set of strategies like content marketing, referral programs, and social media marketing, you can increase brand awareness which will make your audience trust your business.

Once they become a lead, you can nurture them through the sales funnel using strategies like email marketing. Drip marketing campaigns through email (or any platform) are a great way of delivering value through personalized content.

Furthermore, by leveraging UGC, social mentions, and testimonials, you can earn their trust by delivering a great customer experience. This will not only increase the rate of customer acquisition but will also keep the acquisition costs low and improve customer retention.

4. You Can Adapt Growth Marketing to Your Needs

Adaptability lies at the heart of effective growth marketing. This makes growth marketing platforms an excellent option for businesses of all sizes, regardless of their marketing budget.

Based on your current objectives, you can facilitate rapid business growth by investing in selective growth marketing strategies. 

For instance, if you want to position yourself as a thought leader, you can just focus on PR campaigns. Or, if you want to increase your conversion rates, you can invest in tactics such as programmatic ads.

However, to know what will work best for you, it can be hugely beneficial to take assistance from successful growth marketers who have a wide array of experience. As every business, including yours, is defined by many variables, it can be easy to make mistakes that you cannot afford.

This is where a growth hacking team like Matter Made can help you immensely. 

5. Growth Marketing is Scalable 

Unlike traditional marketing, you can selectively scale up your growth marketing efforts to give you specific results.

For instance, if you want to increase the number of visitors to your website, you can scale up your content efforts. If you want to get more followers on social media, increase your activity on corresponding social media platforms.

Furthermore, you can scale up any of your growth marketing experiments whenever you want to. 

Apart from being adaptive to your need of the hour, scalability is another reason why working with an experienced growth marketing manager is indispensable.

Need A Growth Strategy? Chat To Matter Made

Growth marketing helps you in the following ways:

  1. It increases your brand awareness
  2. It improves your marketing ROI by targeting potential customers that are more likely to convert
  3. It makes it easy for you to gain new customers while reducing CAC
  4. It adapts to your needs and constraints of the moment
  5. It scales in the way you want to and when you want to

Matter Made's growth marketing team has helped SaaS companies like Loom and Dropbox grow astronomically by creating and implementing various growth marketing strategies suited to their respective niches.

Our growth hackers can help you strategize and execute growth strategies for faster revenue growth, get you more customers through demand generation, and cement your position as an industry leader through paid media campaigns.

Interested? Let’s talk.

Blog Post

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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