Growth Marketing has been gaining popularity in recent years. But what hides behind this term? Does Growth Marketing really differ much from the well-known traditional marketing? And finally... What does it have to do with pirates? 😇
Let's start at the beginning... What is Growth Marketing?
Growth Marketing is simply marketing aimed at growth. Increased sales, increased active subscriptions, or more app downloads.
Unlike traditionally understood marketing, in which we focus primarily on reaching as many users as possible, in Growth Marketing we aim at a specific target group, leading it through all stages of the sales funnel - starting with building brand awareness, through acquiring and retaining new customers, to the development of the product or service itself.
In Growth Marketing, objective, meticulously collected data lead the way and become the basis for testing hypotheses and implementing new solutions. Everything according to the principle: Act - Measure - Improve!
How to implement Growth Marketing in a company?
Whoever dreamed of being a pirate as a child, now has the opportunity to do so, because the pirate cry AARRR has become a permanent part of Growth's vocabulary core.
And this is not a bizarre incantation that will guarantee us marketing and sales success, but an extremely useful tool that allows us to trace the current activities in our company and optimize them in such a way that none of the stages of the sales funnel is omitted in them.
The AARRR model, created by David McClure, corresponds to the five phases of the customer life cycle, suggesting tools and indicators that will help us measure the effectiveness of our actions and implement possible changes.
By deciphering AARRR, we get:
- Acquisition: who are our customers and how do they get to us?
- Activation: How do we get customers to actively use our service or product?
- Retention: How to encourage customers to stay with us for longer?
- Referral: How do we encourage customers to recommend our service or product?
- Revenue: How do we get customers to buy our product or service?
Growth Marketing in Tidio - as seen by Experts
"The Pirate Model" tells you how to comprehensively approach conversion funnel analysis, basing your decisions on concrete, objective data, thus being a fantastic Growth Marketing tool.
So how does the AARRR apply in practice?
At Tidio, in the Acquisition Department, our main goal is to reach new customers. The whole process of fighting for the user starts at the stage of precise definition of the target group, getting to know its shopping habits and reaching the places they remain most often at. With this information we create content that responds to their real needs.
“Diversification is paramount in acquiring new users; it allows you to achieve two business-critical goals - independence from a single source of customer inflow and scaling your operations.
Therefore, we try to apply a balanced marketing-mix, investing heavily in SEO, SEM, presence in App Stores of platforms for which we provide solutions (e.g. Shopify, Wordpress) or affiliate activities.
At the same time, we optimize every step for our growth Polar Star – User Lifetime Value.”
Karol Nowacki, Search Acquisition Manager
The activation phase is the moment at which our job is to encourage the customer to test our product by offering an easy-to-navigate interface, exceptional customer service and responding to queries and concerns as they arise. Our goal is to get the user to the so-called HUH-moment where they first see real value from our service.
“Knowing our customers and what they expect, we show them how, with minimum effort and steps, they can launch Tidio application on their website and start using it actively (the so-called set up moment). By getting to know our application and its functionalities users reach the HUH Moment - they begin to understand the benefits of using Tidio for their business.
During the activation process, we use product (quantitative) analytics tools to see how many, of the initial users who went through the set up moment, made it to the HUH-moment. We then interview users from both groups to understand what Tidio features are most valuable to them, and those who opted out to learn what was behind that decision.
This gives us a basis for the hypotheses we want to test e.g. highlighting those product features/qualities that are highlighted as important by users who have stayed with us.”
Marcin Stoll, Head of Product
It is the key word telling us whether our users are satisfied with the product offered to them and whether they will stay with us for longer. This is where the quality of customer service, a personalized approach and a thorough analysis of the feedback we receive are of the utmost importance.
“Our Customer Service Support team makes every effort to ensure that customers go through the process of installing our tool in a smooth and seamless manner. It is at this stage that users generate the most queries. Our operators not only respond to user queries, but each time they try to probe deeper into the problem and fully understand what is causing it.
We measure the effectiveness of our team's activities by one main indicator - CSAT (customer satisfaction). Additionally, all conversations with users are evaluated against our internal indicator - Internal Quality Score. This is where we look to see if any procedures have been broken that could negatively impact user retention or slow down their activation process.”
Olek Potrykus, Head of Customer Experience
The icing on the cake of marketing activities, the moment when our customers become brand ambassadors. To facilitate this task, we can, for example, prepare a loyalty program in which our customers, in return for recommending the brand to others, will receive additional freebies.
For example, Tidio customers (and others) can join an affiliate program where they receive a commission for each paying customer they refer.
The result of all marketing efforts is the closing of the sale. This is the moment when all previous actions and analyses pay off - the customer decides to invest in our product.
“Our teams carefully analyze every step of the consumer path, from the first contact with the Tidio app to the final subscription purchase. We look for the bottlenecks that block our actions, analyze the feedback our users share with us and make the necessary improvements. A key element in the development of our application is the continuous monitoring of our customers' satisfaction and quick response to their needs.”
Tytus Gołas, CEO
Growth Marketing – the source of its effectiveness
There are two things that all the described marketing actions have in common and ensure their effectiveness: basing on solid data and a precisely selected target group.
This is what Growth Marketing is based on. It is a method of operation, which owes its success and high effectiveness to constant monitoring of actions, experimental approach based on solid data and thorough, in-depth analysis of the target group.
So if by now you've been wondering how to succeed in the turbulent marketing waters - Growth Marketing is what you're looking for. AARRR!