10 Principles of Growth Marketing
10 Principles of Growth Marketing
1. Your product needs to be good.
This may be obvious, but a great product is the foundation of any great business. All too often I see early stage startups rushing to market without a decent product. Quality product experiences are the most potent marketing tools at your disposal since it not only satisfies existing customers, but also encourages people to tell their friends and leave good reviews, creating a sustainable growth loop. What other people say about a product, also known as social proof, is one of the most vital factors in successful growth. So make sure you've got a good product, so people talk about it in a positive light.
2. Word of Mouth is the best form of marketing that ever was, and ever will be.
Word of mouth carries a level of trust and authenticity that no paid advertisement can match. People trust their friends, family and favorite influencers. Leverage this principle by giving customers opportunities to talk about your product (cool packaging, product photographs well, product makes for good before and afters, etc.) and encouraging satisfied customers to share their positive experiences. Then, showcase your word of mouth. Put positive reviews and testimonials on your site, socials, organic content, everywhere. People pay attention when enough people talk about something, and it adds a legitimacy that will affirm customer's buying decisions.
3. Know your 1-2 north star metrics. make clear and actionable goals, within a specific timeframe.
You need to get your whole team on the same page about the 1-2 KPIs that actually matter. Usually this is revenue, or total sales, followed by some sort of efficiency metric like gross profit margin, CAC (customer acquisition cost), AOV (average order value), LTV (lifetime value of a customer), MER (marketing efficiency ratio) or ROAS (return on ad spend.) Think of it as having a GPS for your growth journey. Without it, you're just wandering around hoping for the best. Set your course, and let those metrics be your guiding star.
4. Make clear and actionable goals, within a specific timeframe.
Once you have your north star metrics and KPIs set, you need to add a timeframe. For example, $100,000 in sales next month with a $80 CAC or lower. Goals that aren't defined by both a target number and a timeframe, is like embarking on a road trip without a destination in mind. These goals serve as the guiding stars that align the efforts of your team towards a common objective, providing a clear sense of direction and purpose. Additionally, a specific timeframe adds a sense of urgency, encouraging timely execution and ensuring that strategies and tactics remain focused. It's this combination of clarity and urgency that propels businesses towards meaningful and measurable growth.
5. Your website needs to be good. Especially on mobile.
Your website needs to be well designed, function properly and look good on mobile. It's 2023 and people expect this–without it, your company comes across as questionable at best, untrustworthy at worst. And prioritize mobile optimization because everyone is on their phone all day, every day. A visually appealing homepage, engaging landing pages and seamless checkout experience builds trust and increases conversion rates.
6. Focus on 1-2 channels at a time. Especially early on.
Spreading efforts too thin across multiple channels can lead to diluted results. Early on, you're simply not going to have the resources to be good at Instagram AND TikTok AND Twitter AND YouTube AND have a newsletter etc. Concentrate on a couple of channels (for example, Instagram and email, or Google Ads and Facebook groups) where your target audience is most active. By mastering a few channels, you can refine your approach before expanding into others. For service businesses or product businesses in existing categories, I always start with Google Ads. Capture existing demand from people searching for your product or service before venturing into generating demand through Meta or TikTok ads.
7. Get your measurement and attribution right.
Accurate measurement and attribution are essential for understanding which marketing efforts are actually driving results. I once had a client that didn't have their Facebook pixel setup properly so it was double counting every order. They thought their CAC was $60 instead of $120. Oops. Try explaining that one to the CFO and the board. Start with your purchase conversions, get your Meta and Google Ads pixels setup properly and integrated with Shopify Conversions API, Google Tag Manager and Google Analytics. It can be a pain, but it's essential. Proper tracking enables data-driven decision-making, allowing you to optimize ads/campaigns and allocate resources effectively.
8. Dial in your message and offer. Good copywriting is underrated.
People have the aattention span of a goldfish. Compelling messaging and offers are critical for capturing and retaining audience attention. Start with this: What results does your product bring to people's lives? Whenever possible, try to show the results, instead of telling. Then go into the features of the product, pricing, options, discounts, why its better than competitors and any frequently asked questions. Effective copywriting not only communicates the value of your product but also resonates with the needs and desires of your target audience, ultimately driving conversions.
9. Grow your brand by associating it with other brands of equal or higher value.
This one is huge and whenever I mention it to clients I see a big "AHA!" bubble right above their head. Look, if no one knows who you are, try and associate yourself with people or brands who are. This could be press (local news, blogs, email newsletters or mainstream), influencers (start smaller and offer your product for free if you don't have the budget) or adjacent brands (ex: if you sell gardening gloves try and associate yourself with a gardening blog or gardening tools company through a co-branded giveaway or collaborative content.) Strategic partnerships or collaborations with reputable brands can lend credibility and expand your reach. Then, leverage those brand associations by posting their logos on your site, socials, organic content, etc. Let people know you belong.
10. Keep it simple. Don't overdue it with A/B testing or marketing tools.
While testing and tools are valuable, simplicity is key. With too many moving pieces, it gets really hard to define the variables that led to success when something goes right, or failure, when something goes wrong. You don't need to use every shiny toy, so avoid overcomplicating processes with an excess of tools or extensive A/B testing. Focus on a few key experiments and tools that deliver meaningful insights and impact.
principles > strategy > tactics
Cool. So heavy on the marketing jargon, but some good stuff in there about experimenting (you should always be A/B testing either your copy, landing pages, ads or emails–in my experience you never know what you may uncover about your customers' experience), using various channels (guys, the days of only relying on Facebook ads are OVER) and finally, making the growth scalable and sustainable.
And while growth marketing does involve a lot of tactical execution referenced in this definition, I think it's important to back up for a minute, and take into account a holistic strategy. Every brand's strategy is different, so before defining a strategy, I think its important to keep these principles in mind first.
"a data-driven marketing strategy focused on rapid experimentation and optimization of various channels and tactics with the goal of achieving scalable and sustainable business growth."
What is growth marketing?
Growth marketing or growth hacking, defined by everyone's favorite new AI internet tool, ChatGPT, is:
10 Principles of Growth Marketing
principles > strategy > tactics
"a data-driven marketing strategy focused on rapid experimentation and optimization of various channels and tactics with the goal of achieving scalable and sustainable business growth."
Cool. So heavy on the marketing jargon, but some good stuff in there about experimenting (you should always be A/B testing either your copy, landing pages, ads or emails–in my experience you never know what you may uncover about your customers' experience), using various channels (guys, the days of only relying on Facebook ads are OVER) and finally, making the growth scalable and sustainable.
And while growth marketing does involve a lot of tactical execution referenced in this definition, I think it's important to back up for a minute, and take into account a holistic strategy. Every brand's strategy is different, so before defining a strategy, I think its important to keep these principles in mind first.
What is growth marketing?
Growth marketing or growth hacking, defined by everyone's favorite new AI internet tool, ChatGPT, is:
10 Principles of Growth Marketing
1. Your product needs to be good.
This may be obvious, but a great product is the foundation of any great business. All too often I see early stage startups rushing to market without a decent product. Quality product experiences are the most potent marketing tools at your disposal since it not only satisfies existing customers, but also encourages people to tell their friends and leave good reviews, creating a sustainable growth loop. What other people say about a product, also known as social proof, is one of the most vital factors in successful growth. So make sure you've got a good product, so people talk about it in a positive light.
2. Word of Mouth is the best form of marketing that ever was, and ever will be.
Word of mouth carries a level of trust and authenticity that no paid advertisement can match. People trust their friends, family and favorite influencers. Leverage this principle by giving customers opportunities to talk about your product (cool packaging, product photographs well, product makes for good before and afters, etc.) and encouraging satisfied customers to share their positive experiences. Then, showcase your word of mouth. Put positive reviews and testimonials on your site, socials, organic content, everywhere. People pay attention when enough people talk about something, and it adds a legitimacy that will affirm customer's buying decisions.
3. Know your 1-2 north star metrics. make clear and actionable goals, within a specific timeframe.
You need to get your whole team on the same page about the 1-2 KPIs that actually matter. Usually this is revenue, or total sales, followed by some sort of efficiency metric like gross profit margin, CAC (customer acquisition cost), AOV (average order value), LTV (lifetime value of a customer), MER (marketing efficiency ratio) or ROAS (return on ad spend.) Think of it as having a GPS for your growth journey. Without it, you're just wandering around hoping for the best. Set your course, and let those metrics be your guiding star.
4. Make clear and actionable goals, within a specific timeframe.
Once you have your north star metrics and KPIs set, you need to add a timeframe. For example, $100,000 in sales next month with a $80 CAC or lower. Goals that aren't defined by both a target number and a timeframe, is like embarking on a road trip without a destination in mind. These goals serve as the guiding stars that align the efforts of your team towards a common objective, providing a clear sense of direction and purpose. Additionally, a specific timeframe adds a sense of urgency, encouraging timely execution and ensuring that strategies and tactics remain focused. It's this combination of clarity and urgency that propels businesses towards meaningful and measurable growth.
5. Your website needs to be good. Especially on mobile.
Your website needs to be well designed, function properly and look good on mobile. It's 2023 and people expect this–without it, your company comes across as questionable at best, untrustworthy at worst. And prioritize mobile optimization because everyone is on their phone all day, every day. A visually appealing homepage, engaging landing pages and seamless checkout experience builds trust and increases conversion rates.
6. Focus on 1-2 channels at a time. Especially early on.
Spreading efforts too thin across multiple channels can lead to diluted results. Early on, you're simply not going to have the resources to be good at Instagram AND TikTok AND Twitter AND YouTube AND have a newsletter etc. Concentrate on a couple of channels (for example, Instagram and email, or Google Ads and Facebook groups) where your target audience is most active. By mastering a few channels, you can refine your approach before expanding into others. For service businesses or product businesses in existing categories, I always start with Google Ads. Capture existing demand from people searching for your product or service before venturing into generating demand through Meta or TikTok ads.
7. Get your measurement and attribution right.
Accurate measurement and attribution are essential for understanding which marketing efforts are actually driving results. I once had a client that didn't have their Facebook pixel setup properly so it was double counting every order. They thought their CAC was $60 instead of $120. Oops. Try explaining that one to the CFO and the board. Start with your purchase conversions, get your Meta and Google Ads pixels setup properly and integrated with Shopify Conversions API, Google Tag Manager and Google Analytics. It can be a pain, but it's essential. Proper tracking enables data-driven decision-making, allowing you to optimize ads/campaigns and allocate resources effectively.
8. Dial in your message and offer. Good copywriting is underrated.
People have the aattention span of a goldfish. Compelling messaging and offers are critical for capturing and retaining audience attention. Start with this: What results does your product bring to people's lives? Whenever possible, try to show the results, instead of telling. Then go into the features of the product, pricing, options, discounts, why its better than competitors and any frequently asked questions. Effective copywriting not only communicates the value of your product but also resonates with the needs and desires of your target audience, ultimately driving conversions.
9. Grow your brand by associating it with other brands of equal or higher value.
This one is huge and whenever I mention it to clients I see a big "AHA!" bubble right above their head. Look, if no one knows who you are, try and associate yourself with people or brands who are. This could be press (local news, blogs, email newsletters or mainstream), influencers (start smaller and offer your product for free if you don't have the budget) or adjacent brands (ex: if you sell gardening gloves try and associate yourself with a gardening blog or gardening tools company through a co-branded giveaway or collaborative content.) Strategic partnerships or collaborations with reputable brands can lend credibility and expand your reach. Then, leverage those brand associations by posting their logos on your site, socials, organic content, etc. Let people know you belong.
10. Keep it simple. Don't overdue it with A/B testing or marketing tools.
While testing and tools are valuable, simplicity is key. With too many moving pieces, it gets really hard to define the variables that led to success when something goes right, or failure, when something goes wrong. You don't need to use every shiny toy, so avoid overcomplicating processes with an excess of tools or extensive A/B testing. Focus on a few key experiments and tools that deliver meaningful insights and impact.