Ever heard the term ‘growth marketing’ or ‘product marketing’? These are aspects of a business, that if done properly, can expand your business to a global scale, and even make your company a household name.
What is Growth Marketing?
Growth Marketing is the process of performing experiments to better the results of a target area. If there’s a certain measure that you want to improve on, growth marketing can be used to achieve that.
Roles of Growth Marketing:
- Analyze Results and Conduct Follow-Up Experimentation as needed
- Conduct Experiments based on Hypothesis
- Identify Aspects to Test and Improve Upon
- Develop and Design Experiments to Enhance Business Functions
A Growth Marketer uses the data, along with scientific methods to create and carry out experiments. Within a business, growth marketing is an analytically-based process that focuses primarily on the data side of marketing.
Experiments are performed in order to improve the rate of growth and expansion, and in this line of work, growth marketers need to be fine with failing multiple times, even plan for it. If there’s an experiment that doesn’t yield the results you expected, you need to have the next option on standby and ready for testing. Hence, growth marketers should have many premeditated solutions at their fingertips and be ready to approach experiments from different angles.
If one fails, the next one is ready for testing.
Application of Growth Marketing in Business
Growth marketing can be implemented to various aspects in your business.
An easy way to remember these aspects are in the acronym ‘AAARRR’, which expands to; Awareness, Acquisition, Activation, Revenue, Retention, and Referral.
A key aspect to growth marketing is increasing awareness, which are the efforts made towards the exposure of your brand to potential prospects as well as creating a culture around it.
This involves tactics such as social media marketing, SEO optimization, and many more.
To achieve this, marketers experiment with social media strategies. They test what frequency of posts is most effective in increasing blog traffic and what type of content gets the most attention.
Acquisition is the process of acquiring new customers or users through gated content, freemium subscriptions, and other marketing strategies. For example, Slack uses email collection forms to acquire new users.
Activation is the process of getting people to activate the products or services they purchase as soon as possible. Facebook noticed that if the new users added at least seven friends in the first week, they were highly likely to return and keep using Facebook.
Growth marketers research ways to make sure that happens through streamlining the process of how users find and add friends.
Revenue involves all the activities done in order to make the company money. These are things like customers purchases, signing up for a service, upgrading current products or services.
Growth marketers address revenue-related strategies by experiments with pricing-tactics.
They also experiment with upselling tactics, which are sales techniques where a seller coaxes the customer to purchase more product, services or add-ons on them.
Retention is the process of retaining customers on a platform, and continuing to buy goods or subscribing to their services. To improve the retention metric, growth marketers look at methods to offer personalized support for their customers in order to increase the value users get from the product. Personalization helps users gain a deeper relationship, thereby increasing product value.
When customers are satisfied with your products or services, they will refer them to their friends. To improve referral processes, marketers set up referral schemes or programs which incentivize referrals so customers are encouraged to refer prospective customers in order to earn a small commission. For example, Tesla offers supercharger miles for free to users in exchange for their referrals. Growth marketers experiment with incentives or promotional strategies based around the referral system in order to increase results.
What is Product Marketing?
Product marketing is the process of selling and promoting products to customers in a market in order to increase sales revenue. Product marketing acts as the link between improving product awareness and development.
Role of Product Marketing and Product Marketing Managers
Product marketing addresses the following functions of a business:
- Conducting Competitive Research
- Creating and Delivering Training for Sales and Support
- Developing Product Pricing Strategies and Structures
- Developing and Managing the Product Roadmap
- Gathering all Market Information
- Implementing and Analyzing Customer Surveys
- Managing Product Backlogs
- Overseeing the Creation of Sales and Marketing tools
- Perform Win/Loss Analysis
- Synthesizing All Internal and External Stakeholder Input on Features and Priorities
- Working up Detailed User/Customer/Buyer Preferences
- Working with Public Relations Firms
- Working with Analyst Relations Firms
A product marketing manager acts as a link between the company and the customer.
This includes having a profound understanding of the customer’s engagement and satisfaction of their product line.
Product marketing managers gather customer feedback and suggestions through the use of surveys, interviews, as well as analytics for product usage and competitive data to monitor and come up with marketing tactics. Managers also use analytics to document the history of the product so they can see where they stand, and what they can do to increase sales revenue.
They also emphasize on customer-product education to promote the customer’s engagement and knowledge of their products.
The most important thing to remember is that the difference between a good or bad product or growth marketing team directly correlates to the success or failure of your business.
So, don’t skimp on good marketing resources. Look around and acquire the best talent you can find, then watch your business grow.