Growth Hack is a term that has been used more and more in Brazil. Coined by Sean Ellis, responsible for the absurd growth of DropBox, EventBrite and LogMeIn, it basically describes out-of-the-ordinary expansion tactics.
The idea of a Growth Hacker is to be able to bring scalable growth to the company, through various channels, whether through marketing, sales or product.
However, despite being expanding in Brazil, this theme is already well known abroad. Even in the US, some no longer take it so seriously.
But, without going into the merits of right and wrong, let’s understand a little better how the work of a Growth Hacker works?
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- The Growth Hacker Myth: Truths and Lies
- Conclusion: Growth Hacking is not just about building Outbound and Inbound
The Growth Hacker Myth: Truths and Lies
We can say that the person responsible for growth in a company must be the person who knows the market best. From the product to the personas, he is the one who will structure the processes that will take your company to another level.
But there are some caveats regarding this function. Not every type of business supports a Growth Hacker. Just think, for example, of a company like Palantir (a software and IT services company for the US government).
Working with an average ticket in the thousands of dollars, it doesn’t make sense for them to have a prospecting team or even sell their solutions online.
Marketing for them, for example, has the unique function of building branding. They will not sell the Millionaire Ticket for Inbound.
Outbound, on the other hand, can hardly reach the decision maker easily. Can you imagine a Hunter prospecting the FBI’s director of intelligence? That’s right, me neither.
It takes a lot of credibilities to make this type of sale. So, it is necessary that the founders carry out the entire process! Even due to the complexity of the solution, it is very difficult to train a team of salespeople in a scalable way to go to market.
Therefore, just like Inbound, which was (still is) fashionable in Brazil, Growth Hacking follows the same path.
Are we going to delve into the truths and lies about this role?
Truth 1: In B2C Markets, Growth Hackers Often Generate More Robust Growth
Growing up in B2C markets is very complicated. It’s difficult and time-consuming to find the right way to grow!
The target audience is very dispersed and has very varied tastes, in addition to using heterogeneous channels in their daily lives.
However, once the Growth Hacker finds the ideal path, the company’s growth reaches extraordinary levels.
For example, Airbnb. They reverse-engineered it to build a Craiglist-compatible platform, a sort of US Classifieds.
Having access to the entire base of Craiglist, they were able to quickly expand their operations. In the end, this insight was a great differential for its expansion, even more considering that Craiglist has no API!
And as virtually anyone over 18 is a possible user of the tool, the service’s capillarity has further facilitated the absurd increase in revenue.
So, if you have a B2C solution that serves a very wide audience, Growth Hacking can make your company a good few million!
Truth 2: In B2B, it is necessary to structure a series of processes before thinking about Growth Hack
In B2B, a company needs to meet several aspects to achieve success. The sale is relatively more complex than in the B2C, only to have an example.
While in B2C people buy more for emotion, if you generate a high volume of qualified leads and your team does not have the capacity and training to convert them into new customers, your efforts will be useless.
Even a well-crafted Growth strategy can lead your company to burn leads at the speed of light, if the other end is not prepared to sell.
So, before thinking about highly scalable growth, remember that your company needs to organize some areas before taking this step!
Teaching how to sell and even adapting your platform to the entry of several customers can be the difference when it comes to growing healthily and without taking a step bigger than your leg.
Lie 1: Marketing Specialists Are Growth Hackers
Marketing and Growth Hacking indeed have a very strong intersection. Both are focused on generating traffic and qualified leads for the company.
However, this is one of the functions of marketing and not the only one. He works with branding, events and other points that are not necessarily linked to the Growth area.
Of course, these actions have an effect on growth, but when we talk about Hack, we are talking about looking for shortcuts. If your company has a good event, its growth will depend on its recurrence, for example.
While in Growth Hacking, the specialist focuses on finding these paths, which are sometimes unusual. And beyond that, its only focus is growth.
For that reason, he works a lot together with the product area to survey how users have interacted with the platform, trying to find insights for a killer strategy.
So, we realized that not necessarily a marketer is a Growth Hacker.
Lie 2: Growth Hacking Specialists With No Practical Experience
For someone to be considered an expert in Growth Hacking, it is necessary that the person in question has a practical result.
As well as stage entrepreneurs (nothing against) and also the various “experts” in sales in the market, there are several people who work with Growth Hacking, but have not yet achieved the result in practice.
So, when looking for references, analyze the cases before choosing who to follow. Not that someone who has only studied in the field does not have the knowledge to move forward.
But just like stage entrepreneurship, the ideal is to consume in moderation!
Conclusion: Growth Hacking is not just about building Outbound and Inbound
Outbound and Inbound are strategies that must exist in all companies (if it has the profile to use them) to bring revenue steadily.
However, in the long run, it is always necessary to find ways to reach an even wider audience through an unimagined channel or even release a killer feature.
In the end, we can say that the work of Growth Hacker is something non-linear. Hardly a previous experience can be fully repeated in other works.
It is always necessary to find new paths, especially as each market has its specificities.