Academy Xi Blog

The Difference Between Growth Marketing and Traditional Marketing

By Academy Xi

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Nick Chernih is a former marketing instructor at Academy Xi and has experience in both the digital and growth marketing space. From working at Airtasker, Nvoi and Koala Mattress, Nick shares his insights on the industry and why growth marketing is becoming a highly sought after role in Australia.

What is the difference between marketing and growth marketing?

Digital marketing has always been around acquisition and just getting people in the door. Growth marketing, on the other hand, is the entire user journey. A growth marketers role is to try and nurture people through the entire funnel.

I see growth marketing as more encompassing of a lead. Once you get them in, you still have to worry about them forever. You have to think about how you’re going to nurture them into becoming revenue, how you’re going to solve their problem, how you will keep them as active users and how you will encourage them to talk to their friends.

 How do you get started as a growth marketer?

I started as a digital marketer, working agency side for a long time. Then I started doing digital marketing for startups and I saw what it was like on the other side of the fence.

From a business perspective, you can’t just look at the top of the funnel, that alone doesn’t tell you if you’re product is actually working. To quantify the users you’re bringing in and to see if they’re of value, you have to look further down the funnel. That’s how I got into growth marketing, by seeing how I could increase the quality of people that I’m bringing in.

 

What’s an example of a growth marketing success story in Australia?

Canva are probably one of the biggest success stories. They’re famous for not using any paid advertising, and they’re really big on hiring growth people there.

Their design school is probably one of their bigger wins. It’s a resource for designers or people wanting to learn design to educate them on how to become better designers and how they can do that via Canva.

There may be over a million people reading their blog per month and that’s a great way to cross-sell that into their business. They educate people to become better designers and therefore more people want to become designers and want to use their product.

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Academy Xi Blog

Ten Growth Marketing Hacks

By Academy Xi

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Growth Hacking (or growth marketing) is the process of rapidly experimenting, iterating, and improving a business’ marketing strategy to optimise growth. The fascinating thing about Growth Marketing is how varied it is; there’s no one-size-fits-all approach.

Many startup founders and marketers are faced with the mind-boggling challenge of growing a sales funnel without spending bucket loads on expensive marketing activities. But without the right hacks and skills, the solution is mere guesswork, simply crossing your fingers in hope of a good return on investment.

If you don’t have extra cash to splash on extensive marketing activities, growth hacking can help you unlock sustainable and scalable growth from the ground, up.

With emerging technologies and exponential disruption, let’s explore some examples of valuable, easy-to-implement growth hacks that you can utilise in your business:

Growth Hack 1: Dropbox Reciprocates Value

The key to a business’ success is to always be giving.” — Jordan Harbinger

We all know that one friend — the who borrows money from you or asks for a favour without offering anything in return. A brand’s relationship with their customer should be similar to human relationships, based on the same behaviour of ‘give and take’.

One of the most famous examples of clever growth marketing was Dropbox who added a ‘Get Free Space’ button on the front page of their service. If someone referred a friend, both them and their friend received 500MB free space. Sign-ups increased by 60%. Now that’s win-win.

Growth Hack 2: Hotmail Leverages the Power of Referrals

Referral marketing is an effective, less expensive tactic that results in a strong source of lifetime-value (LTV). Research reveals that 71% of marketers agree that referral marketing costs less than traditional customer acquisition, that prioritises the acquisition of new customers.

Back in the 90s, Hotmail massively expanded email use with an intriguing offer at the bottom of their emails: ‘PS: I love you. Get your free e-mail at Hotmail.’ Their strategy was simple and still effective — and at the time generated over 3,000 new clients per day.

The practice of ‘referral marketing’ is a popular hack, and a key part of the ‘pirate funnel’ of growth marketing:

Referral Tip: Use some attention-grabbing copy or images to capture people’s interest.

Growth Hack 3: Airbnb relied on other sites

It might sound counterproductive, but leveraging high-traffic websites can be an effective way to get in front of your customers. An example of a company that has made this work is Airbnb, as they dramatically increased their user base by exploiting an existing high-traffic channel.

Through a smart email integration, Airbnb encouraged Craiglist users in America (similar to Gumtree in Australia) to replicate room ads on Airbnb. This integration worked in a number of ways — directing traffic from Craigslist to Airbnb, and automatically posting any Airbnb ads on Craigslist, effectively doubling Airbnb’s outreach.

To identify existing high-traffic customer channels, step into the shoes of your users:

  • “Where do my users hang out on social media or online?”
  • “How are my users currently solving this pain point?”

Growth Hack 4: Pinterest Generates Buzz

Another method of rapidly expanding your user base is through creating a sense of exclusivity. With one of the top human motivators being exclusivity and fear of missing out (#FOMO), crafting exceptional, seamless user experiences go hand-in-hand to form the ultimate growth hack.

Pinterest pinned their way to the top by following Facebook’s lead and starting out as invite-only. After they built a long waiting list, Pinterest generated a whirlwind buzz within the community. To keep the flames of their initial hype burning, Pinterest cemented their position in the market through the introduction of limitless scrolling.

By including this small feature, the impact on the user experience was phenomenal. Based on the insights captured, Pinterest encouraged longer uninterrupted interactions, and significantly increased the enjoyability of their app.

Growth Hack 5: Slack unlocks ‘Job to be Done’

As part of the Human-Centred Design philosophy within User Experience (UX) Design or Service Design, each product or service has a ‘job’ (need or purpose) that a customer has ‘hired’ it to fulfill.

One remarkable company that has hacked their way to success is Slack, a messaging and task management software. Slack defined their product based on a pain-point. Customers who are disillusioned with time-consuming internal email communication. By leveraging existing communities, the team invited 8,000 people to try the software, without charging them if they didn’t convert afterward. Little did Slack anticipate that their success would snowball into over 8 million daily active users today.

Once you understand what jobs people are striving to do, it becomes easier to predict what products or services they will take up and which will fall flat.” ― Stephen Wunker, author of Jobs to Be Done: A Roadmap for Customer-Centred Innovation

 

Growth Hack 6: LinkedIn prioritises SEO

With 93% of all online interactions starting with a search engine, it is obvious that your site’s SEO shouldn’t be neglected. While meta descriptions and canonical URLs can be difficult to grasp, tackling your site’s SEO offers invaluable benefits.

LinkedIn is an example of a company at the forefront of site optimisation. Through a simple change; allowing users to create public profiles that show up organically in search engine results, LinkedIn completely changes the rules of the SEO game.

Before our extensive social media presence, valid search results, when searching a name, company or title, were few and far between. LinkedIn, therefore, had some valuable search-result real-estate, and as a result, were able to create a multi-million dollar viral loop in the business.

Growth Hack 7: YouTube makes it easy to share

From the earliest of days, word-of-mouth is naturally one most powerful marketing tools available. Customer awareness is one of the most difficult stages of the marketing funnel to crack, and any effort to increase awareness puts companies in good stead.

The key to YouTube’s success was to focus on making it easy to share videos and create a community. YouTube presents you with an embed code to easily share on your social media channels, website, or blog. Video suggestions that show up encourage further engagement, making a user more likely to share another video suggested to them.

Sharing Tip: Employ tools like Share Link Generator to encourage people to share your content and expand your outreach. As a personal recommendation carries more social proof than any paid marketing effort, build your brand’s reputation from the bottom up by people that we trust most — our peers.  

Growth Hack 8: Twitter optimises their signup process

For most products, only less than 16% of the market can be classified as an early adopter or innovator and it can be challenging for businesses to get their product in front of the majority.

Twitter experienced the same situation and was able to solve this problem. When Twitter first launched there was a lot of interest and people signed up and shared Twitter across social networks by the thousands. But Twitter hit a roadblock when new users starting dropping off and disengaging.

By thoroughly exploring the key factors that led to the continued use of Twitter, they identified that people were more likely to stick around if they had the following conditions:

  • They followed at least 5-10 people
  • They had selected interests
  • They had created a network

Twitter shaped their sign-up process around this, encouraging users to invest in their account. This dramatically increased engagement.

Growth Hack 9: Tinder thinks outside-the-building

While stepping outside of the building isn’t a growth hack per se, a number of companies have capitalised on growth opportunities with a physical presence.

Tinder swiped their way to success by using offline, in-person strategies to grow user interaction with their app. By identifying their target market, Tinder uncovered that universities were a great place to reach their ideal persona. Through a number of free organised university parties, Tinder significantly increased their customer awareness and acquisition, with only one requirement to attend — that you created an account.

Growth Hack 10: Whatsapp built a great product

The heart of any successful growth hack is to simply build a great product. It may sound cliche but having a great product is a straightforward way of securing user acquisition.

Whatsapp employed clever strategies to enable them to gain 400 million users without spending a dollar on user acquisition. Understanding and delivering key value is the momentum they needed to lead Facebook into buying them out in 2014 for $22 billion. How did they do it? Put simply, they had a great product.

Whatsapp did their research, understood their users’ needs, and continued to iterate until they perfected their product. Nothing else was needed, and they spread like wildfire now with over 450 million daily users in 2018.

Creating a great product tip:  Uncovering what your users want may seem like a monstrous task. Research methods such as developing user personas will uncover who you’re solving for and what their functional, social, emotional, and personal drivers are.

From the outside, it’s hard to tease out what these different examples have in common. The main takeaway should be that no one principle, technique, or offer will suit every business type. The key to growth hacking within any business is to complete thorough testing to determine the approach that will work, and then creatively tackle challenges based on your insights.

Learn how to grow businesses with our range of  Digital Marketing courses.

Academy Xi Blog

A Community of Growth Hackers Working on $0 Budget

By Academy Xi

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A growth marketer’s problem is thinking about how to get a customer in the door and nurture them into becoming revenue. From door to revenue, there are numerous funnels a customer may take and sometimes it’s a bumpy road.

According to a 2014 Gartner Research study, companies spend — on average — 10.2 percent of their annual revenue on marketing. For small startups, 10 percent is a lot of money, and for not-for-profits, that’s an insane amount!   

It’s much harder for not-for-profit organisations to growth market, as they need to draw the attention of a particular niche: the donator.

In having limited resources and time, finding a way to hack into that explosive growth is crucial for not-for-profits.

Earlier this month, Academy Xi reached out to three not-for-profits: Madeline and Alannah Foundation, Startout, and eOrygen — and connected them with hackers and agencies to help them find a path to explosive growth.

This connection transformed into our Growth Hack Idol competition, where each organisation has the chance to win a coveted “Golden Metric” crown, but more importantly, learn the skills and techniques of growth hacking.

In working on a $0 budget, hackers and agencies gave up their time to work on each not-for-profit’s area of opportunity. They’ve already made headway in growing their organisations, with some really inventive growth hacks.

We caught up with those involved in the competition to see how they’re tracking and if they’ll be ready to present for our final event: Growth Hack Idol: The Results.

Alannah and Madeline Foundation

What they’ve achieved so far:

  • Utilising social media to attract a new audience
  • Identification of new demographic: mums with young children
  • Assessment of web page with new curated content and design to improve event landing pages

“We just haven’t had time for social media, yet it’s a cornerstone of everything we do,” says Caroline Henricks, head of marketing at the Alannah and Madeline Foundation. “This exercise has really helped to focus us.”

Startout

What they’ve achieved so far:

  • The launch of their startup, which received a special mention in Federal Parliament
  • Engagement of regional networks
  • Improvements on SEO, increasing website traffic by 20 percent
  • Additional 350 likes on Facebook

“They’re the ideal client in the sense that they’ve put a lot of hard yakka into the brand and the mentor network that they have,” says Ian Hopkinson from Mad Scientist Digital Agency. “I wish all of our clients were like this because I’m leaping out of bed in the morning!”

eOrygen

What they’ve achieved so far:

  • Speaking engagement at Healthtech event
  • Creation of mailing list
  • Building of landing pages and calls to action
  • 14 confirmed product ambassadors, on the way to 100

“Everything seems to be moving a lot faster than what we originally thought,” says Erica Jolly, from Milk It Academy. “We’re getting far more engagement than expected!”

And it’s not too late for you to participate! Put yourself in the middle of the action with Growth Hack Idol: The Results. If you’re not a hacker, you’re a judge. You will be involved in deciding the winner across a series of categories that include “the most creative use of data,” “the best metric” and the “audience prize.”

Academy Xi Blog

How to Tap into Explosive Growth

By Academy Xi

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If you’re interested in growth marketing, then you have probably been to one of the growth hacking meetups in Sydney or Melbourne. There are over 4,000 active participants of the community who are always looking for ways to upskill, influence and leverage.

The term growth hacker was first coined back in 2010 by Sean Ellis, previous head of growth at Dropbox and founder of GrowthHackers.com. Since then, startups have been exploring and experimenting with ways to increase growth and scale.

Arguably, one of the most talked about growth marketing success stories comes from Airbnb. In 2010, Airbnb tapped into the user base of Craigslist: a user base of millions, which propelled the startup into a rapid growth stage.

Today, growth hackers and marketers are in popular demand. For entrepreneurs building new businesses, growing and scaling can prevent them from drowning in a sea of similar ideas.

For entrepreneur Rob Price, growth marketing was not his strong suit, however he knew he had to tap into the right markets and grow his idea before another popped up. In being a small startup and not having the capacity to hire a large team, Rob took it upon himself to learn the skills of growth marketing at Academy Xi.

“I could have just read a bunch of blogs and tried to have a play, but sitting with growth experts in a 10-week course, two nights a week, gave me a really solid foundation and a more targeted approach to [growth marketing],” Rob explains.

Rob entered the course at the same time he launched his startup: Mashay. The startup helps friends and work mates find and book group experiences. Mashay partners with companies like Young Henrys, Salt Meats Cheese and Cake Wines to curate the best group activities.

“A lot of group activities don’t happen because they get put into the too hard basket. Either it’s too hard to organise your mates, or it’s too hard to find the right experience for the group,” Rob explains.

Rob chose to work on Mashay during the day and learn the skills of growth marketing at night. Instead of going to growth hacking meetups, Rob extended his work day with the growth marketing part-time course.

“90 percent of what we covered was directly relevant to what Mashay was tackling at any point in time. As I was going through the course I was adding tickets on JIRA for what we should do, purely on the basis of what we were talking about,” says Rob.

The biggest challenge for Rob, wasn’t juggling his time, but juggling his skills.

“When you begin a startup there’s so many skill domains that it’s impossible for one person to be comfortable in all those domains,” he explains.

Through learning about growth marketing, Rob gained a better understanding of how other startups were building their marketing stack.

“Before I would have just jumped at the first person who came along with growth marketing experience, which would have potentially been bad for the business,” Rob admits.

Since launch Mashay has grown 15 percent week on week and is now starting to dive into more partnerships around Sydney, and will look to launch in Brisbane and Melbourne within the next 12 months.

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