Airbnb, Pinterest, Instagram or more recently Drive Now … The insolent growth of some start-ups is dreaming. So how are they doing? Of course, the product or service they offer pleases and meets the public. But that's not all. All these companies have in common an aggressive marketing methodology, growth hacking.
A difficult concept to define
The term was invented, for lack of a better, by Sean Ellis, a former Dropbox. But there is no consensus around the definition of growth hacking. On the contrary, there are almost as many definitions as there are growth hackers. Because the idea is good to stand out, "to invent" ingenious ways to boost the growth of a society. With one thing in common: the working method. The AARRR method, for Acquisition, Activation, Retention, Revenue and Recommendation.
Acquisition: the brand attracts the prospect to his service or website.
Activation: the prospect "tastes" for the first time the product or service by installing an application, registering for a newsletter or ordering for the first time on an e-commerce site.
Retention: the prospect returns to the site every day, uses an application every weekend, etc.
Income: the user becomes a real customer for the company, it brings him money.
Recommendation: The client has sufficient confidence in the product or service to promote it to his or her knowledge.
Agile marketing explained by McKinsey
The conversion tunnel, the obsession with growth hacker
These steps put end to end form the conversion tunnel, in short the journey of the customer, from his discovery of the brand to the recommendation of it to his friends. "On every step of this conversion tunnel, we will do Google analytics. We will implement other types of analytics more focused on the user. We will put in place a CRM (Customer Relationship Management, ed), content strategies, etc., says Jean-Christophe Cuvelier, managing director of Mad Kings. The idea is to measure each step, and in relation to these measures, to take rational actions. "
Objective: to identify the parameters that allowed or not the company to convert its prospects into customers. In other words, determine "what has blocked" in the process of membership or purchase, and then fix it.
What are the differences with traditional marketing?
The massive use of data and internet tools of course. A good example is sometimes better than a long explanation. In his agency, Jean-Christophe Cuvelier boosted sales of a premium running app. "When we looked at the analytics, we realized that a lot of people were using the free part, but that they paid very little. And we saw that those who had paid had all done, in the application, an exercise that is called an endurance test. So we adapted the marketing campaign to push users to do this test. By doing this, we increased the conversion rate by a factor of 5. With traditional marketing, we would have been satisfied to advertise to increase the number of users of the application, rather than spend money to increase the conversion rate. It would have been a lot less effective. "
Other differences: agility. In growth hacking, no big project of a year, but rather a succession of "sprints". These small experiments of a few weeks make it possible to test at a lower cost, to be mistaken, and thus, if necessary, to change course. "Before spending 50.000 € to make a chatbox for example, we will test with a hundred euros and maybe a person internally to see if it works, if it will increase the conversion rate". The methodology, which has existed for a long time in IT, is increasingly proven in marketing. And for good reason, the growth hacker can then give free rein to its creativity to remedy the identified blockages, via more or less legal techniques according to its degree of ethics. Yes, the term "hacking" was not chosen for nothing. Keep an eye, we return very quickly on some concrete cases!