Growth hacking – how to market in the age of the internet?

The popularisation of the Internet is one of the most important developments of recent years – its easy availability and low prices mean that virtually anyone can connect their computer to the global network. The Internet has influenced our behaviour, our habits and the way we communicate and work.

It has also revolutionised marketing – although for a long time marketing activities were carried out in the old way, which did not allow for the full use of the ‘conquests’ of the Internet, such as real-time data and all the analytics. So how do you manage your online advertising to get the best results? The answer is growth marketing.

What is growth hacking?

Growth hacking, or growth marketing, is a methodology for conducting online marketing activities. The term was first used by Sean Ellis, an entrepreneur and start-up founder from the USA, who was looking for people whose skills went far beyond traditional marketing, without entering the realm of programming.

In English, growth hacking means “hacking for growth”, unfortunately no better Polish equivalent has yet been invented. It is also known as growth marketing, full funnel marketing or data-driven marketing.

It is a specific, broadly defined process that aims to generate planned and measurable growth. The aim of growth hacking is not to maximise reach (hence the abandonment of traditional marketing methods such as TV advertising), but to reach the best possible audience at the lowest possible cost.

Growth hacking vs. traditional marketing

Unlike traditional marketing activities, growth hacking involves activities at every stage of the marketing funnel, including blurring the standard boundaries between product and sales. Growth hacking should be understood as the process of optimising a product/service to generate planned and measurable growth in businesses that do not have the resources for traditional, high-cost marketing, while retaining opportunities for dynamic growth.

Growth Tribe, a growth marketing training company, defines growth hacking as “activities around a full sales/marketing funnel, based on data and rapid testing”. A number of definitions focus on process, defining the concept as “a data-driven approach to customer acquisition, conversion and retention”.

In its infancy, growth hacking has become a very popular method of marketing, with many companies such as Facebook, Tinder and Buzzfeed proving its effectiveness. Growth marketing seems to be a great method for marketing activities in start-ups, i.e. companies that are likely to grow big and fast.

So what is the fundamental difference between traditional marketing and growth marketing? The creators of the term postulate a mismatch between traditional marketing and changing circumstances. The development of the Internet has significantly changed human behaviour and the possibilities of marketing activities themselves, both by providing new advertising channels and by expanding analytical capabilities. For example, the Internet makes it possible to target advertising to a precisely defined group of people, for example by filtering it on the basis of their behaviour or preferences. This should be the contemporary goal of marketing activities – to reach people who are genuinely interested in the product a company is selling, rather than building a broad but ineffective reach. 

With the development of the internet, the definition of a product has also changed – it no longer has to be a purely physical thing, and increasingly a product is a digital good, such as a music file or an e-book. Increasingly, the product itself is becoming an advertising channel – an example of this is Facebook itself, whose posts we can share with others… within Facebook.

The product distribution model has also changed – we no longer have to leave the house to buy something (even physical products). In fact, we can order anything and have it delivered, or simply download it onto our computer after paying for it. The e-commerce (online sales) market is still one of the fastest growing markets in international business, despite the passage of years, and continues to be valued by investors.

All this makes traditional marketing seem inadequate to the challenges it faces – this is where growth hacking comes in.

Growth marketing – is it a complete novelty or just a tidying up of the knowledge base?

Although many authorities try to present growth marketing as something new, an approach that will completely revolutionise marketing activities, much of the concept is already familiar to us – after all, most of the elements of this philosophy can be found in performance marketing, and the first examples of ‘growth hacking’ activities can be traced back to the 1990s. One of the oldest growth hacks is the one used to promote Hotmail, which involved adding a link to a product page in the signature of every Hotmail message.

In the early days of growth hacking’s popularity, its creators postulated that the phenomenon was a completely new frontier that would soon replace traditional marketing altogether. Such conclusions can be found, for example, in Andrew Chen’s famous article ‘Will the growth hacker replace your marketing director’. With the benefit of hindsight, it seems that such visions did not materialise, and the strength of the theories postulating the rapid demise of traditional marketing has also weakened considerably.

Does your company need a growth hacker?

With the emergence of a new approach to marketing, a whole new marketing profession has emerged in the market – namely the growth hacker, someone who combines traditional marketing skills with knowledge of modern technology. Sean Ellis mentions that a growth hacker is not a replacement for a marketing employee, nor is he better than one – he is simply a person with a different profile and skillset whose “sole purpose is growth”. All his actions, are only to result in growth, understood in different ways, depending on the goals set for him – it could be an increase in the value of the company, an increase in the number of customers, website visitors, etc.

The future of growth hacking

Although the methodology was established almost a decade ago, it is still evolving and there are still valuable elements that can be successfully applied today. Many of the theories and underpinnings of growth hacking are changing or even becoming obsolete, making it one of the most exciting areas of marketing today.

FAQ: Growth Hacking in the Digital Age

1. What is growth hacking?
   Growth hacking is a focus on rapid growth using innovative, cost-effective strategies, primarily in digital marketing. This approach involves a mix of marketing, product development, and user engagement tactics to achieve scalability and efficiency.
   
2. How does growth hacking differ from traditional marketing?
   Unlike traditional marketing, which often relies on established channels and significant budgets, growth hacking emphasizes agility and the creative use of resources. It seeks to exploit new growth opportunities with minimal expenditure by prioritizing experimentation.
   
3. What are common growth hacking tactics?
   Common tactics include leveraging social media platforms for viral content, optimizing websites for better conversion rates, and A/B testing to refine marketing strategies. These methods aim to maximize reach and engagement with target audiences efficiently.
   
4. Can small businesses apply growth hacking?
   Absolutely, growth hacking is particularly suitable for startups and small businesses due to its emphasis on cost-efficiency and rapid growth. It provides a framework for these entities to compete in the digital landscape without the need for large marketing budgets.
   
5. What skills are needed for growth hacking?
   Effective growth hacking requires a blend of skills including creativity in marketing, proficiency in data analysis, and an understanding of technology. This multidisciplinary approach enables growth hackers to innovate and adapt strategies quickly to market changes.