Even after being a relatively new term, Growth Hacking is a buzzword these days. Whether it is a startup or established brands, all take growth hacking very seriously. Let’s first try to understand what growth hacking MEANS.
What is Growth Hacking?
Growth Hacking is – Using out-of-the-box, innovative thinking, and technology across all the marketing channels to find the most efficient and effective way to attain a massive business growth in a short time.
The goal of growth hacking approaches is generally to obtain as many customers as possible in a small budget.
In short, Growth Hacking is the way Companies like Netflix and Airbnb took down the giants with their disruptive digital business model and Amazon has beaten all the physical retailers.
When the term was invented in 2010 by Sean Ellis, it was generally associated with the growth of the early stage startups. But now it has reached to mid and big corporates as well.
An ideal growth hacking team does not include just the core marketers, but it should be a combination of people with analytical, marketing, technical, and creative thinking skills.
Image Source: growthtribe.io
Data for Growth Hacking: Why?
Gone are the days when companies could work in silos and potential customers used to depend on TV and newspapers for information. The customers these days try to gather as much information as possible through digital mediums before going for a product or service.
So the businesses need to have an excellent digital presence and an effective strategy to make sure that this digital presence is in their favor. The businesses also need to understand their customers and their needs and serve them accordingly.
When Netflix started, Blockbuster was already an established brand. Blockbuster did not take Netflix seriously and did not come up with innovative ways to retain the customers. Most likely, Blockbuster did not come across the data, which showed a drop in sales. Even if they did see the data, they did not take it seriously and failed to act upon it.
Image Source: Drift
A disruption in the business model of consumer brands is inevitable and has already started happening. The way consumer goods on Amazon in the US are heavily dominated by new businesses and Chinese sellers with the help of digital strategy and the way Amazon white label products (Amazon Basics) growth is accelerating with the help of all the data. Amazon basics may also start to dominate the retail in coming times.
When we talk about data, the most important thing is to be able to connect with the users digitally. This connection comes with countless benefits of measurable economical and expedited innovations.
Here is the list of top priorities for most of the consumer brands that can not be achieved without data.
Consumer connection
Brands need to stay connected with their consumers to increase the retention rate. If the brands have the customer data and consumer behavior data, they can reach out to them at the right time with the right product offerings, product launches, and offers. With the help of consumer behavior insights, brands can send the personalized message to the specifically targeted customers instead of sending the same message to each one of them.
Image Source: getvoip.com
Automation of consumer life cycle management
Customer life cycle describes the process when a customer considers a product/service until the customer purchases it. A customer life cycle begins as soon as you grab the attention of your potential customers. The five stages of a customer life cycle are – Reach, Acquisition, Conversion, Retention, and Loyalty.
With the help of data, brands can automate customer life cycle management and find innovative ways to convert and retain them.
Personalized marketing automation for repeat sales
Personalization in marketing is essential to boost repeat sales and to gauge the user sentiments about new product innovations. Consumers these days feel connected with the brand if the brand interacts with them with personalized messages. Automation of personalized marketing is possible with the help of consumer data and applying analytics on this data. Automation helps in reaching out to the consumers with the right personalized message and at the right moment. As per researches, 41% of customers expect to receive messages from brands based on their purchase and browsing history.
Following chart by Monetate clearly shows how extensively data is used to create a personalized experience for customers.
Image Source: retailwire.com
Consumer digital loyalty rewards
Incentivising repeat-customers with offers and discounts is a great strategy to increase the customer retention rate. But brands can’t achieve it without their consumer behavior data, as the brand needs to reward their buyers according to their purchase frequency, as well as based on the money spent. Loyalty rewards heavily influence brand advocacy, customer retention, and spend.
Digitizing whatever possible and as soon as possible
Product digitization through serialization technology is the foundation for digitizing your brand, which helps you enable supply chain visibility and protection from the counterfeit & diversion. Loyalty program and long term consumer engagement via digital marketing. We at NeuroTags make this process extremely simple and most cost-effective by providing plug and play technology.
Breaking the silos, bringing all the departments together for growth hacking and innovation
In today’s competitive world, companies can no more work in silos and still achieve the growth goal. All the departments need to exchange information with each other and make strategic decisions based on shared data.
Image Source: bloomfire.com
Digitization of the supply chain till the last leg of distribution
Digitization of supply chain helps brands to collect the product performance data according to geo-location, data of all the parties involved in the supply chain in real-time. A very effective way to achieve this is to offer rewards through a simple digital platform to the retailers and other parties involved at various nodes. NeuroTags helps brands to digitize the supply chain in a very efficient and cost-effective way.
Giving the power back to the brands from the retailers
Brands should have much more power over the retailers because they control the product and product innovations. Still, the retailers have the upper hand because the brands do not have a direct connection with the consumers.
Please contact us to know how NeuroTags can help in achieving your Growth Hacking goals.
