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As a business owner or an executive in an enterprise, your objective would be to work on strategies such as increasing engagement, creating brand awareness, and enhancing sales. Basically, you would aim to find methods to assist you with long-term growth and sustainability.
However, a survey by Gartner shows that around 58% of business leaders and CEOs struggle to find ways to drive growth. But, the rise of digital marketing has given them hope to focus on driving growth. That is where performance marketing comes into play.
It will allow you to track the performance and effectiveness of your digital marketing strategies. Also, having the right mindset to help you drive growth is vital. This is why we also need to focus on the “Growth Hacking” concept.
So what is a performance marketing and growth hacking? What is the role of performance marketing in growth hacking? And how can ensure proper implementation of growth hacking for your team? We’ll discuss all those things in this article to give you a better about both terminologieps.
What is Growth Hacking?
Growth hacking refers to the techniques or strategies that allow you to enjoy rapid market growth. It usually entails coming up with out-of-the-box or trying out new experiments for growth hacks. These hacks will allow businesses to increase sales and boost overall revenue.
Sean Ellis — an entrepreneur and startup investor was the first to use this phrase. The primary objective of growth hacking is to speed up the connection process with new and established audiences. This way, they can drive quick growth for their business.
However, the concept isn’t limited only to customer acquisition. In fact, there are various critical components of growth hacking such as increasing referrals and retention. If you look at the growth hacking funnel, it is different than the one for the traditional marketing one. Here is a breakdown of the funnel to give you a better idea about it.
- Acquisition – Identifying a channel that allows you to market your product to the target audience in a cost-effective manner
- Activation – Encouraging people to try out your products or services
- Retention – Forming a trusting relationship and engaging with them
- Revenue – Creating a constant stream of revenue for a sustainable business growth
- Referral – Getting your existing customers to refer the brand to their peers and other closed ones
Why is Growth Hacking Becoming More Popular?
Growth hacking is an irresistible concept for many brands since it allows them to speed up the process of growth. This concept allows them to make more money in less time. However, it is not simple as it looks and requires proper planning and execution for successful implementation.
Most importantly, it requires you to come up with innovative ideas and fearless experimenting with them to achieve growth. When done right, brands can experience growth without spending huge amounts of money on targeting the widest audiences.
Also, when experimenting with new things, there is a chance that they might fail as well. So, if you have partnered with an agency for your marketing efforts, then there is a chance that the methods or strategies that they experiment with for growth hacking might not work. Therefore, it is best to go for the performance-based advertising strategy (also known as performance marketing)
What is Performance Marketing?
Performance marketing is a type of marketing where businesses will only pay for the marketing service providers on the results. In simple words, businesses will marketers only pay them if they meet the business objectives. This type of advertising is different from the traditional one where you have to pay for the services upfront.
In most cases, you have to purchase the ad space for placing your ads. However, digital performance marketing has changed the course of action today. So, you’ll only have to pay for the services if it gives you desired result such as new leads, sales, or clicks on ads, etc.
Performance Marketing in Growth Hacking – How Are They Connected?
Performance marketing is about reaching and engaging with clients effectively to achieve the desired result. The marketing agency will come up with solutions and strategies that will allow you to get the desired outcomes. Additionally, they will also assist you with your marketing efforts for future planning.
An important thing to note is that can performance marketing contributes to growth hacking. The digital marketing agency will only come up with strategies that they are confident about to give you the desired outcomes. Hence, it will drive growth for your business. Here is how your performance marketing can help with growth hacking for your business.
Better Decisions Making
Data is a critical element in this business’s marketing strategy today since it can allow you to grow. It can help you with setting goals & objectives for your PPC campaign since you’ll have a better idea of what the customers want.
Also, you can track the overall performance of different campaigns to know which one is working and which isn’t delivering optimal performance. This way, you can improvise or optimize your marketing strategy.
Maximized Return on Investment (ROI)
Statistics show that companies have invested billions of dollars in marketing services each year. With such a high amount invested in marketing efforts, you might want to know about the return on investment you’re getting. Performance marketing helps marketing agencies to track their spending.
As a result, it becomes quite easier for them to calculate the ROI for each campaign. You can identify the channels or strategies that yield the highest return and divert your efforts and resources to them.
Cost Savings
As the cost of doing business is increasing, every penny that you spend on your marketing efforts matters. You need to manage your costs and ensure you utilize the resources effectively. Digital performance marketing can come in handy for cost savings since it will allow you to pay only if you get desired results.
Moreover, it will save you from spending money on expensive marketing campaigns that are not giving the desired results. It is a competitive advantage that performance marketing has over traditional advertising since you won’t have to pay for each impression.
Better Planning
A critical thing about growth hacking is that you need to come up with out-of-the-box strategies to drive rapid growth for your business. Since performance marketing allows you to get a better insight into which campaigns are working, it can assist you with your future plans.
You can have the relevant data to know about the marketing strategies that are doing well. Consequently, you can keep the customers’ preferences and likings about the successful campaigns in mind to come up with future plans.
Performance Marketing in Growth Hacking – The Bottom Line
We hope you have a clear idea about performance marketing and growth hacking. Both these things can help your business to enjoy rapid growth in short succession. So, make sure to make the most out of them for your business’s growth and sustainability.
However, it is vital to find a reputable and trustworthy marketing service provider that can help you achieve your goals. They will help you adopt performance marketing in the right way so your business can achieve the desired results.
