Marketing is a very dynamic process. It evolves with growing technologies, consumer behaviour, and the requirements of every industry, in terms of reach and retention of leads. Every new marketing strategy is an extension or improvement of an existing one. Similarly, growth marketing retains some traditional marketing goals and strategies. However, the two methods are vastly different in their function and the results generated.
Growth marketing is the need of the hour, and this article tells you why. Here are 6 key differences between growth marketing and traditional marketing to help you understand what works best for your business.
1. The Basic Goals
The first thing that one must understand – what is growth marketing? This is a new concept that was introduced in the year 2010 by Sean Ellis, who is the founder and CEO of Growth Hackers. This method has been used to build companies like DropBox. Growth hacking or growth marketing makes use of several techniques that are aimed at improving the growth of any company. It starts to form the early stages of a product or service development and continues even after its launch. The goal is not just to create brand awareness but to also retain customers. With traditional marketing, the scope is limited to creating awareness about the brand and driving in new leads.
2. Timeline and Budget
When you hire a growth marketing agency for your brand, you are not limited by budgets or timelines. They make use of several techniques such as email marketing, SEO, UX, guerrilla marketing, and a lot more. These innovative methods are not time-bound. Most importantly, the techniques used can be effectively planned according to the budget. Traditional marketing, on the other hand, uses advertising media such as flyers, newspaper advertisement, TV, or radio spots. The reach is greater, no doubt. Plus, you also create faster brand awareness. However, these techniques demand huge budgets which ultimately make them time-bound.
3. Analytics
Growth marketing is completely data-driven. Since the goal is to acquire and retain users, growth marketing constantly analyses and develops the North Star Metric of every brand. This refers to the primary value that a business offers to its customers. They study user behaviour and constantly keep users engaged to keep this metric growing steadily. Besides the metrics, growth marketing also relies on data recovered from the different marketing techniques used. This helps them understand what works and what doesn’t.
Traditional marketing does delve into analytics to some extent. However, this data is mostly concerned with the visibility of the brand and the leads generated. Their analytics do not include any customer interaction post this stage. This is because retention is not a goal with traditional marketing.
4. Finding the Right Audience
A growth marketing agency talks about Product Market Fit. This means finding the right target group for a particular product. They make use of several steps which includes testing the product in different markets. Product Market Fit is achieved when a particular product begins to sell quickly in the given target group. Growth marketing also adapts continuously to meet the changing needs of the customer. With traditional marketing, it is all about talking about a given product to as many people as possible. While there are some obvious target groups when it comes to creating advertisements or promotional material, the final reach is not restricted to them.
5. Product Based Marketing
Growth hacking understands the potential of a product first. They strive to help a product reach that maximum potential in terms of what it offers to the customers. So, the involvement of growth marketing experts begins right at the developmental stages of the product. Then, tests and reviews offer enough data to understand how a product needs to be changed to drive in maximum returns on investment. With traditional marketing, a product that is already completed is taken to the market. It is up to the creators of the product to make necessary changes based on the feedback from their respective demographics.
6. The Purchasing Funnel
Marketing professionals use the term purchasing funnel to list all the steps that a customer goes through from the time of learning about the brand to post-sales services. This funnel includes six steps:
● Awareness about the brand.
● Acquisition of leads.
● Activation or sale of a product.
● Retention based on customer experience.
● Revenue.
● Referrals from customers.
With growth marketing, the customer goes through all these steps that are mentioned above. However, with traditional marketing, the customer’s journey ends at lead acquisition. Growth marketing is all about creating lifetime value for a customer and building loyalty towards a brand.
Now that you know what growth marketing is and what it can do for your business get in touch with Amura today. We can help take your business to the new level with a carefully planned growth marketing strategy. Our growth marketing company utilises all the levels of your organisation and their resources to make sure that you create great value for each customer.