What is Growth Hacking
The term “growth hacking” describes a wide range of strategies that refers to systems solely focused on growth. It is typically used to describe early-stage companies that require massive change with tiny budgets within very short periods. Sean Ellis, CEO and founder of GrowthHackers, created”growth hacking,” a term coined “growth hacking” in 2010. Growth hacking is the use of strategies for marketing through digital channels, specifically targeted at gaining the maximum number of consumers and spending as little as feasible.
What is the purpose of achieving Hacking Growth
The hacking method aims to draw in as many customers or users as possible and spend as minimal as possible.
What is the AAARRR Funnel for Growth Hacking
AAARRR is the acronym for Awareness Acquisition, Activation Revenue Retention, and Referral. These metrics can be used to measure your business’s growth while, at the same time, establishing specific, actionable metrics goals for your new venture.
Let’s look at each of them and how growth hacking and digital marketing are in a relationship. Growth hacking uses digital marketing strategies, particularly designed to attract the maximum number of customers and spend as little money as feasible.
AWARENESS
The number of people a brand can reach can directly correlate with the awareness level. The amount of people who come across or are aware of your products or services is the initial step of your AAARRR framework.
Awareness is further subdivided into two parts: Awareness and Reach. The term “Brand” refers to Awareness as the capability to present your Brand’s image to the greatest number of people within the same group who have expressed interest in your Brand. Reach is the capacity to promote your services to the greatest number of individuals.
The main goal of the awareness funnel is to establish the brand name and introduce it into the marketplace.
The awareness funnel can help:
Record the number of times you’ve viewed it.
Find out about the number of website visits weekly, daily, or monthly.
The amount of Google searches Google is a direct result of the name of your company.
Find the Click-through Rate (CTR). The CTR is the proportion that people click the link compared to. The number of people who visit that link.
User behavior metrics that can be predicted The amount of time users spend on specific websites
ACQUISITION
The acquisition is the second step of the AAARRR framework. It describes attracting visitors to your site and ultimately turning them into customers. This stage collects data that contains demographic information like names, email addresses, and addresses from your leads.
This information is available through interactions with customers who interact with brands, which could result in more information, including promotional emails or newsletters.
At this point in this funnel, the information collected allows the digital marketing experts to determine the buyer’s persona. Digital marketing specialists assist companies in understanding the best way to position themselves to appeal to the market correctly.
Targeted Ad Campaigns are created to ensure companies align with their target audience. This can be made easier by keeping track of leads on social media and email subscriptions.
The Acquisition metrics used within the AAARRR framework are:
Visitors to Leads Conversion Rate The percentage of website visitors who convert to Leads. It does not only show the Site Visitors, but it will also show exactly the number of Site Visitors and How they have been converted into Leads.
Cost of acquisition: The acquisition cost measures the expense of acquiring one customer.
The average Deal Cycle is when the customer first comes in contact with your products and services before eventually becoming a client after the successful deal.
It’s a method to keep track of every step in the customer’s journey more than just examine the final sales of a paid customer.
ACTIVATION
It is the initial interaction by your customer or a lead to your Brand, product, or service. It could be taking a certain time to visit your site, download your app to sign up or use a trial offer by your company to potential customers.
The most crucial aspect of this process is that your business provides a solution to the needs or problems of your customer. If your solutions and customer demands match and you can engage them with your Brand, this is called Activation.
You can track leads and discover which customers are looking to buy or upgrade your services to make them regular customers. You can also measure your customers’ journey to discover the time averaged by customers from the beginning of engagement until they become active customers.
RETENTION
Retention is the fourth stage of the AAARRR framework and is the first step in assessing the effectiveness of any service or product a business offers. Retention is when customers come returning to your product or service regularly.
Customer retention measures your marketing strategies for the Brand and the product’s effectiveness in general. It starts with leads, and then you make them available to customers. Once you’ve activated them as a customer, it is essential to establish a plan to maintain them. This is categorized under retention.
Retaining existing customers is more difficult than acquiring an entirely new one since retention requires more rational effort than a new lead. While a new lead isn’t as difficult, it needs more money than retaining customers already in the company. Additionally, no business will grow simply by focusing on new leads and the loss of existing customers. In the long term, it’s more affordable and more efficient to cross-sell or make a re-sales to a customer you’ve already accumulated rather than to a “fresh new lead.”