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What is Growth Hacking?
Growth hacking is a methodology based on constant testing and analysis of various marketing hypotheses. This approach allows for significant business performance increases in a short time. Growth hacking is also known as explosive growth marketing. The term was first introduced by Sean Ellis in 2010, who was able to significantly boost the revenues of companies like Dropbox. Today, he leads a community of growth hackers called GrowthHackers.
According to a 2022 study by GrowthHackers involving 236 companies worldwide, most respondents noted revenue growth after implementing a growth hacking team. 20% of organizations reported that their profits increased by more than 100% over the year. Growth hackers test at least five ideas weekly that could boost revenue. Large corporations may test up to 1,000 hypotheses a week, allowing them to identify the most effective growth methods.
Differences between growth hacking and traditional marketing
Growth hacking differs from traditional marketing in its structure and approaches. In classical marketing, teams typically focus on attracting customers and retaining their interest, while in growth hacking, the team covers all stages of the customer journey. This structure is known as AARRR (Acquisition, Activation, Retention, Revenue, Referral).
Growth hackers must have quick access to data at all stages to effectively analyze results. Analytics plays a key role in explosive growth marketing — all changes must be data-driven. For example, the agency Shevchenko.bz not only analyzes conversions but also anticipates the cost of successful and unsuccessful outcomes.
How growth hacking works
Growth hacking teams work in a cycle: they gather data, formulate hypotheses, conduct experiments, and analyze results. The process begins with thorough data collection, based on which hypotheses are developed. These hypotheses are then tested, and results are recorded for further analysis. For instance, if the hypothesis is that increasing the button size will lead to a higher conversion rate, the team clearly outlines expectations and resources needed for testing.
Rapid A/B testing is often used to test many hypotheses in a short time. After testing, results are analyzed, and the team makes decisions about further actions based on both successes and failures. It’s important that the success of one experiment does not negatively impact other metrics.
Who should be involved in growth hacking?
A growth hacking team typically consists of diverse specialists working on a permanent basis. The minimum team composition includes an analyst, marketer, developer, designer, layout designer, and project manager. Each plays a key role in the testing and implementation process. In smaller companies, one employee may combine several roles; however, it is essential that this does not slow down the testing process.
Growth hacking can be not only a separate activity but also an approach to work that all team members adopt. For example, regular marketers and product managers can participate in testing product functionality and customer interactions, which allows for identifying new growth opportunities.
Which companies are suitable for growth hacking?
Growth hacking is particularly suitable for companies that are open to experimentation and understand that failures are part of the process. This requires patience and a meticulous approach to data analysis. Teams working in the spirit of growth hacking must also be flexible and open to change. For example, the success story of YouTube illustrates how a simple solution — integrating the player onto third-party websites — led to explosive growth.
However, it is important to understand that not all projects can withstand the intense pace of work characteristic of growth hacking. About 70-80% of experiments by newcomers end in failure, while more experienced teams see this figure drop to 50%. The ability to learn from mistakes and continue working on new hypotheses is what truly matters in this field.