Growth Hacking is a term coined by Sean Ellis-the first marketer at Dropbox. It has rapidly attracted the attention of start-ups and marketers across the globe. According to Wikipedia, a formal definition of growth hacking is Growth hacking is a process of rapid experimentation across marketing channels and product development to identify the most effective, efficient ways to grow a business. In simpler terms, growth hacking is the right blend of marketing and product development activities to find what works for your business.
In this post, we’ll talk about how the growth hacking funnel works and how some of the top start-ups have used it in a brilliant way.
The Growth Hacking Funnel
The growth hacking funnel defines a clear pathway as to how start-ups and growing businesses can implement this form of data-driven marketing.
Broadly classifying, the funnel is based on AARRR model which can be further substantiated as
Acquisition: This part talks about awareness of your business. It focuses on how to gain maximum awareness in a cost-effective way and a short period of time.Activation: Once people know about your business, why should they sign up with you? This part talks about how to on-board users in a smooth way.Retention: When users have started using your product/service, what will make them come back again and again? Retention is all about keeping your customers for life.Referral: One of the best marketing channels is word of mouth. People trust their friends and network more than anything else. This part aims at solving the problem of maximizing referrals.Revenue: When all the above points are put into a scalable process, managing cash flow and revenue is the next step.