Growth Marketing is an essential discipline for a company to achieve its objectives.
Increasing profitability does not depend on applying isolated and speculative marketing techniques but rather on planning the processes and people to enable greater control over traffic, sales, and customer retention.
Almost all entrepreneurs and e-commerce marketing administrators ask themselves the same question: how can we find the right growth strategy while minimizing the economic cost of making a mistake? And the answer is always the same: through Growth Marketing.
While we cannot make an entirely accurate prediction of the results, it is possible to apply a strategy that facilitates the optimization of resources. By using the Lean philosophy, any online venture can quickly discard techniques or products that do not work and improve by learning to reduce the failure of business strategies.
This small guide will provide you with a model to define and choose a Growth Marketing strategy for your business.
What is Growth Marketing?
Growth Marketing is based on a new approach focusing on understanding the market and achieving objectives. It combines data analytics and creativity to develop strategies that are able to:
- Achieve maximum growth in the shortest possible time.
- Optimize financial resources.
- Make the best use of time to achieve objectives.
- Eliminate the techniques that do not work in the marketing strategy.
We use data and creativity to discover what the customer wants. Ultimately, it is about finding the most effective way to succeed while avoiding falling into the labyrinth that traditional marketing strategies sometimes entail. They are often more focused on the company and the product than on the customer and their needs.
How to choose a Growth Marketing strategy for your eCommerce
The first thing to do before implementing a Growth Marketing strategy is to define the objectives and the most appropriate strategy, which will depend on the company's situation and a number of factors where the role of the growth hacker is decisive.
1. Define the objectives for your Growth Hacking strategy.
Define the objectives for your Growth Hacking strategy.
When applying Growth Marketing to e-commerce, the objective is to get as many customers as possible into our sales funnel in the shortest amount of time and to achieve the highest percentage of customer retention by applying the right techniques.
This must be done within a revenue/sales planning and a calendar, where we control the main performance indicators (Key Performance Indicators) on which we can work. For example:
- Web traffic
- Web ranking
- Customer acquisition costs
- Active leads
- Conversion rate
- Customer retention rate
- Shopping cart abandonment rate
This is where the support of an agency specialized in e-commerce business growth is vital to establish a strategy for traffic acquisition, digital analytics, and CRO (Conversion Rate Optimization) to improve the performance of your business from the customer acquisition phase to customer loyalty.
2. Choose the most appropriate Growth Marketing strategy for your business.
Your eCommerce insights will be the key to developing a growth strategy since they are the source of information that explains your current situation.
The only way to move in the right direction is to act directly with techniques that impact these ratios. Anything that involves investing in marketing without a precise vision of the data and its interpretation does not correspond to an effective Growth Marketing strategy.
In terms of Growth Marketing strategy, many projects use the Ansoff matrix to plan their strategy for growth. It consists of 4 different strategies, whose suitability depends on the level of maturity of the market and the level of knowledge about our products.
These 4 strategies are market penetration, product development, market development, and diversification.
The market penetration strategy is geared towards those eCommerce that need to expand within their market, increasing their share of the business, but without leaving their niche. This strategy is aimed at increasing sales, both to gain new customers within the existing market and to increase customer retention (and gain recurring customers).
For instance, if you have an online store, focused on the sale of prescription glasses in Spain, your Growth Marketing strategy should be oriented to get more customers and more sales within your market.
How? Through an Inbound Marketing strategy, you can attract more qualified traffic, achieving more leads for your subscriber list and applying CRO techniques to increase conversions in your online store.
The growth strategy based on market development implies a greater maturity of our project. It is about expanding our business into new markets.
These new markets can be different geographical regions, or new customer segments. For example, assuming that until now you only sold prescription glasses in Spain, this strategy would involve selling them at a European level, with a localized strategy in different languages.
This type of Growth Marketing strategy is suitable when you are potentially competitive in other markets. This is also recommended if your target audience in a specific geographic region is very limited, such as if your products are focused on an audience with high purchasing power.
This growth strategy would consist of expanding the profitability of your eCommerce by developing new products for your audience.
For this Growth Marketing strategy to be successful, you need to have a deep understanding of your buyer-persona. Ideally, this growth strategy should focus on selling similar products, targeting your audience. This could be, for example, combining the sale of jewelry with luxury watches.
You can buy these products from a supplier, develop them in your own production line, or establish a strategic partnership with a partner to offer these products.
This strategy consists of introducing new products to new markets. This is the riskiest growth strategy for an eCommerce. This would involve not only targeting another customer segment, either from another geographic location, or another customer profile. It would also involve acquiring or launching new products in the market.
Diversification implies a higher risk, as you have less knowledge of the new market and the new customers' needs. This can be approached in two ways: diversifying your service offering by taking advantage of the market and the products you already offer, or having no relationship with your new offering.
As an example of this Growth Marketing strategy, if you have a brand linked to the sale of artisan nougat, you could create another line of business focused on the sale of traditional sweets, aimed at another type of public with a less seasonal purchase.
3. Create a Growth Marketing team
No Growth Marketing strategy can produce results if you do not appoint the appropriate team to carry it out.
Many of these strategies require the application of marketing techniques to attract a new audience, especially when penetrating a new market. On the other hand, ensuring that new products have a positive impact on our sales will require a strategy aimed at boosting sales of the new products.