7 Tips to Build a Successful Growth Marketing Machine
As companies look to drive new revenue in unexplored channels, growth initiatives are becoming increasingly more popular. But where do you start? How do you start? I’ll admit, it can be overwhelming.
First, let’s talk about why growth initiatives exist. If a company is trying to increase revenue, it can do so in a few ways: expand product margins, increase average order value, and increase customer lifetime value. Alternatively, companies can lean into experimentation with new channels to diversify their channel mix and reach a wider audience.
This brings us to why some companies, like ours, are investing in growth marketing to acquire more customers. While the growth mindset can be applied to many areas of your business (e.g., increasing awareness and retention), for the purposes of this article, I will refer solely to customer acquisition growth.
Our Growth Team, formed at the start of the year, has gone through a lot of trial and error, experienced some big wins, and inevitably had many failures. Whether you already have a few growth marketing initiatives in place or don’t have a clue how to begin the process, here are a few things our team has learned in the past year about building an effective growth machine to validate unexplored customer acquisition channels.
Table of Contents
Collect Growth Ideas From EVERYONE.
Different departments offer unique perspectives regarding where opportunities exist. My advice: mine their expertise. A member of the Engineering Team and a member of the Operations Team will offer vastly different opinions. Take advantage of this.
Not only does engaging a variety of team members give you a good starting point, but it also gives you the chance to weave the growth mindset and experimentation into your company’s DNA. While your Growth Team owns the ‘growth roadmap’, or the growth initiatives you plan on implementing within a given timeframe, everyone in the organization should feel a sense of ownership in the process.
Ensure You Have the Right Analytics and Data Infrastructure in Place
Don’t fly blind. When starting any growth initiative, you must have a clear definition of what success looks like and how you’ll track it. Having the right instruments to effectively measure your goal is critical. The process you use to determine success should be baked into the planning stage and reported on regularly. Strong feedback loops are your lifeblood. Only then will you be able to learn from the test’s results and build bigger and better initiatives in the future. As with successful initiatives, analytics also enable your team to glean insights and learnings from unsuccessful experiments.
Prioritize Growth Ideas Vigilantly to Deliver Maximum Value
There are thousands of customer acquisition channels available to you, not to mention new opportunities cropping up every day. As a growth marketer, you need to 1 deliver the most value to your company through these opportunities. In short, learning to rank and prioritize ideas is essential.
Shiny object syndrome can be a common pitfall for growth marketers constantly culling new opportunities. Don’t fall for it. Instead, embrace a framework to reduce noise and introduce a repeatable, scalable methodology. There are several proposed methods for growth work, so ensure your team takes the time to find the one that works best for you and your environment.
Balance Risk With Reward
While we ultimately prioritize maximizing the number of ‘at bats’ we take (volume, volume, volume!), we also understand that not all opportunities are created equal. One big bet, that gains traction can easily trump ten smaller wins.
We’ve found success in mixing in a few big-swing risks with our smaller, less risky bets. Defining ‘balance’ will be unique to your team, but don’t shy away from varying the sizes of risk you incur with each tactic. Some tactics lend themselves well to a crawl, walk, run approach, whereas others may require more of an all-in approach.
Err On The Side Of Running Too Fast
Time is a huge success factor, even though it is often your team’s scarcest resource. Don’t be afraid of moving quickly. For instance, some growth experiments have a first-mover advantage, meaning opportunities may favor those who commit to a tactic early before it becomes an established channel. It’s important to commit early in such cases, as this can be the difference between huge ROI and lackluster returns.
Stay True To Your Brand and Mission
This tip might sound a bit cliché, but it’s a good rule of thumb nonetheless. When testing growth channels, ask yourself, “If this tactic has a good return, would we implement it into our long-term strategy?’ If the answer is no, then move on. Many growth tactics can easily net you quick wins, but it’s critical to understand that sacrificing the UX or brand perception is, in itself, a hidden cost. Some things look great on paper, but if they go against the grain of who you are as a brand, they are not worth the time, investment, or effort.
Be Transparent With Results and Lessons Learned
No matter how bleak the test results are, make sure you democratize the data with your team so they can learn with you. There’s no point in multiple people making the same mistake because team members are hesitant to share their learnings. It benefits everyone in the long run.
No matter how much you read about and research growth initiatives, the fastest way to learn is to start testing your ideas. Do not paralyze yourself with doubt or fear of failure. You will fail. Accept it. Learn from it. And then do it all again. It’s the only way to grow.
