{"id":80502,"date":"2022-10-03T13:21:00","date_gmt":"2022-10-03T17:21:00","guid":{"rendered":"https:\/\/www.shortform.com\/blog\/?p=80502"},"modified":"2022-10-11T13:44:05","modified_gmt":"2022-10-11T17:44:05","slug":"what-is-growth-hacking","status":"publish","type":"post","link":"https:\/\/www.shortform.com\/blog\/what-is-growth-hacking\/","title":{"rendered":"What Is Growth Hacking? The Secret to Exponential Growth"},"content":{"rendered":"\n<p>What is growth hacking? What is the secret to achieving exponential <a href=\"https:\/\/www.shortform.com\/blog\/business-growth\/\">business growth<\/a>? <\/p>\n\n\n\n<p>Growth hacking is the only growth strategy that will keep your business competitive in the modern marketplace. Growth hacking is premised on continuous and rigorous testing to find hacks\u2014practices that have the potential to skyrocket your company&#8217;s growth. <\/p>\n\n\n\n<p>Keep reading to learn about the growth hacking method.<\/p>\n\n\n\n<!--more-->\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-the-growth-hacking-method\"><strong>The Growth Hacking Method<\/strong><\/h2>\n\n\n\n<p>In today\u2019s fast-paced, high-tech world, old approaches to marketing no longer work. Large-scale, big-budget advertising campaigns are too slow and imprecise for the online world. Better by far is to use <em>growth hacking<\/em>, the authors\u2019 cutting-edge strategy for <a href=\"https:\/\/www.shortform.com\/blog\/management-team-structure\/\">optimizing your business<\/a> and skyrocketing its growth.<\/p>\n\n\n\n<p>What is growth hacking? The basic process of growth hacking is to rapidly analyze your product, generate ideas for growth hacks, select the best ideas, experiment with them (in that order), and repeat. This allows you to learn about your product and your users, quickly find changes that work, and stay flexible as you <a href=\"https:\/\/www.shortform.com\/blog\/how-to-develop-your-business\/\">develop your business<\/a>. In addition, growth hacking thrives on creative solutions to tough problems\u2014so don\u2019t be afraid to think outside the box.<\/p>\n\n\n\n<p>By testing rapidly, growth hacking compounds many small wins to achieve huge successes. This is much like compound interest, where a small sum of money incrementally becomes much larger.<\/p>\n\n\n\n<p>Decide on an initial tempo of experimentation to shoot for, then ramp up over time as the process becomes second nature. The authors recommend starting with at least two tests each week, which your team will determine during the <a href=\"https:\/\/www.shortform.com\/blog\/weekly-meetings\/\">weekly meetings<\/a> you\u2019ll hold. <\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td><strong>Growth Hacking and Agile Software Development<\/strong><br><br>Early in the book, the authors compare their methodology to <a href=\"https:\/\/www.northeastern.edu\/graduate\/blog\/agile-project-management\/\">agile software development, a popular development philosophy<\/a> that focuses on making small, incremental changes that build up to a larger product. Much like growth hacking, agile software development allows teams to stay flexible, adapt on the fly, and make steady, measurable progress.<br><br>The authors\u2019 notion of conducting weekly, high-tempo testing might be inspired by Scrum, a popular agile methodology that uses \u201csprints,\u201d <a href=\"https:\/\/scrumguides.org\/docs\/scrumguide\/v2020\/2020-Scrum-Guide-US.pdf#zoom=100\">periods of fast-paced work that last for between two weeks and a month<\/a>. Whether you\u2019re growth hacking or using <a href=\"https:\/\/www.shortform.com\/blog\/agile-product-development\/\">agile development<\/a> strategies, think of your weekly or monthly sprints as the basic container for the rest of your efforts. Meetings, collaborations, and everyone\u2019s individual work should contribute to running successful, focused sprints.<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-step-1-generate-insights\">Step #1: Generate Insights<\/h3>\n\n\n\n<p>To start, the growth lead and data analyst should dive into your data to look for user patterns, which will give you <em>insights<\/em> (knowledge about how your users use your product or service). According to the authors, <strong>this is how you find opportunities to tweak your product and create growth.<\/strong> Pay attention to things such as where you typically lose customers in your marketing process (your <a href=\"https:\/\/www.shortform.com\/blog\/what-is-a-sales-funnel-and-how-does-it-work\/\">sales funnel<\/a>), how long they spend on each page, and the \u201copen rates\u201d for marketing emails.&nbsp;<\/p>\n\n\n\n<p>At the same time, have your marketer conduct user surveys to gather information about user demographics and other distinguishing characteristics, such as shopping habits or favorite devices. If you can match user behaviors to demographic patterns, you can target tests on specific segments of your user base.&nbsp;<\/p>\n\n\n\n<p>(Shortform note: In addition to generating customer insights, some advocate <a href=\"https:\/\/www.optimove.com\/resources\/learning-center\/predictive-behavior-modeling\">using predictive behavior modeling<\/a>. This is a technique that involves building statistical models of the likely future actions your customers will take based on data you\u2019ve gathered about their past actions. Note that while this can be highly effective\u2014increasing sales, retention, and income\u2014it\u2019s also a feature of surveillance <a href=\"https:\/\/www.shortform.com\/blog\/capitalism-theory\/\">capitalism<\/a>, according to Shoshana Zuboff. In <a href=\"https:\/\/shortform.com\/app\/book\/the-age-of-surveillance-capitalism\/1-page-summary\"><em>The Age of Surveillance Capitalism<\/em><\/a><em>, <\/em>she argues that <a href=\"https:\/\/shortform.com\/app\/book\/the-age-of-surveillance-capitalism\/1-page-summary#phase-2-google-discovers-the-potential-of-predictions\">predicting customer behaviors in order to target them with better marketing<\/a> isn\u2019t an ethical practice.)<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-step-2-gather-ideas\">Step #2: Gather Ideas<\/h3>\n\n\n\n<p>According to the authors, <strong>growth hacking depends on a steady <a href=\"https:\/\/www.shortform.com\/blog\/evolution-of-ideas-2\/\">flow of ideas<\/a><\/strong>\u2014without them, you won\u2019t have any tests to run. To gather ideas, set up project management software that allows your whole team to create and submit ideas. Then, encourage constant <a href=\"https:\/\/www.shortform.com\/blog\/how-to-brainstorm-effectively\/\">brainstorming<\/a> and idea submission. Let your team know that anything goes and all ideas are worth considering, no matter how crazy sounding. Highly resourceful ideas have rocketed many companies upward in growth\u2014for instance, Dollar Shave Club made a ridiculous marketing video that went viral and gained them over 12,000 new customers in just two days.&nbsp;<\/p>\n\n\n\n<p><strong>Have every idea follow a template: a statement of the idea, a brief summary of reasoning, and a hypothesis.<\/strong> Each idea should target a key metric, and it should propose a specific, actionable change that can be measured.&nbsp;<\/p>\n\n\n\n<p>(Shortform note: To improve your ability to generate ideas, <a href=\"https:\/\/www.elmhurst.edu\/blog\/how-to-generate-ideas\/\">try setting a goal to come up with a certain number of ideas each week<\/a>. <a href=\"https:\/\/www.shortform.com\/blog\/track-your-progress\/\">Track your progress<\/a> using a spreadsheet or similar tool, and measure from week to week. Once you can consistently meet that goal, set it a bit higher, repeating until you get to the level you\u2019d like to maintain. You can also have each member of your growth team do the same, until each member meets a level of idea-output that\u2019s sufficient to maintain your group\u2019s testing tempo.)<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-step-3-determine-the-best-ideas\">Step #3: Determine the Best Ideas<\/h3>\n\n\n\n<p>Each team member should score their own ideas before they submit them. The authors recommend using their ICE criteria: <em>Impact, Confidence, Ease<\/em>. Impact is the idea\u2019s potential to produce big change. Confidence is how certain the team member is of success, and Ease is how hard it\u2019ll be to implement the test. Don\u2019t get hung up on the subjectivity of these scores\u2014the rating is meant to be a general guide, not a definitive score.&nbsp;<\/p>\n\n\n\n<p>Before your weekly meeting, have team members nominate three ideas for discussion. During meetings, the growth lead should reassess and adjust the ratings according to her judgment.&nbsp;<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td><strong>Alternative Prioritization Frameworks<\/strong><br><br>In product development, <a href=\"https:\/\/www.productplan.com\/learn\/product-management-frameworks\/\">there are numerous ways to determine which ideas, features, and tweaks should come first<\/a>. The authors\u2019 ICE method is one example; others include:<br><br><strong>Value vs. complexity: <\/strong>Score the ideas in terms of how much they\u2019ll add to the product versus how complex they are. Simple, high-value ideas are best.<br><br><strong>The Kano model<\/strong>: Score ideas according to how much they\u2019ll delight customers versus how much they\u2019ll cost to implement. Delightful, low-cost ideas are best.<br><br><strong>Buy-a-feature: <\/strong>Give each team member a sum of \u201cmoney\u201d to spend on whichever idea they\u2019d most like to see implemented. Use the idea on which team members spend the most money.<br><br>Test these out to discover the one that works best for your team, or try developing your own. Consider what\u2019s most aligned with your company\u2019s values\u2014for instance, ICE prioritizes for impact while Kano prioritizes for delight\u2014and then make that a key parameter in your model.<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-step-4-run-the-experiment\">Step #4: Run the Experiment<\/h3>\n\n\n\n<p>Once your growth team has picked an idea to test, give ownership to the appropriate team members and have them begin working on the experiment. Collaborate across specialties to make whatever changes you need to the product, and notify the rest of the company before you\u2019re about to change something so that it doesn\u2019t interfere with their work.<\/p>\n\n\n\n<p>In general, the authors recommend that when results seem neutral or ambiguous, assume the test didn\u2019t work well enough. It\u2019s better not to waste time chasing something that <em>could <\/em>work if it isn\u2019t that promising to begin with.<\/p>\n\n\n\n<p>(Shortform note: One way to think about your experiments is as <em>random control trials<\/em> (RCTs), which are a standard testing style in scientific and clinical studies. In <a href=\"https:\/\/shortform.com\/app\/book\/black-box-thinking\"><em>Black Box Thinking<\/em><\/a>, Matthew Syed explains that <a href=\"https:\/\/shortform.com\/app\/book\/black-box-thinking\/part-2#technique-1-clarify-feedback\">running an RCT involves establishing a control<\/a>, introducing a variable to test, and measuring how that variable changes things compared to the control. Say you want to test a new landing page design\u2014your old landing page is your control and the new one is your experimental variable. Measure how each performs (how many user actions each gets, and so on), and compare the two to determine which one is more effective.)<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-repeat-the-cycle\">Repeat the Cycle<\/h3>\n\n\n\n<p>After you finish the test, the authors say it\u2019s time to analyze the results and learn from what went well and what didn\u2019t. Have your growth lead and data analyst work through the test results and create a report to present to the team. It should include a description of the test, where it was run, how it impacted your key metrics, and whether the original hypothesis was correct.<\/p>\n\n\n\n<p>In addition, the authors recommend that you keep track of everything you learn by feeding the results of each test into a team knowledge base (a shared document or repository that lists all the tests you\u2019ve run). This allows your team to verify and retain what works and what doesn\u2019t, so that you can avoid repeating mistakes.<\/p>\n\n\n\n<p>(Shortform note: An internal knowledge base can be <a href=\"https:\/\/www.zendesk.com\/service\/help-center\/internal-knowledge-base\/\">a powerful tool that enables your colleagues and employees to tap into the knowledge of everyone at your business<\/a>. The idea is that instead of keeping knowledge siloed within departments or individual\u2019s minds, everyone contributes what they learn to a shared repository of solutions, lessons learned, and general know-how. Over time, this knowledge base will become an extensive resource that anyone in your company can search to find solutions or guidance, without having to waste time figuring things out on their own.)<\/p>\n","protected":false},"excerpt":{"rendered":"<p>What is growth hacking? What is the secret to achieving exponential business growth? Growth hacking is the only growth strategy that will keep your business competitive in the modern marketplace. Growth hacking is premised on continuous and rigorous testing to find hacks\u2014practices that have the potential to skyrocket your company&#8217;s growth. Keep reading to learn about the growth hacking method.<\/p>\n","protected":false},"author":7,"featured_media":71931,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[45,14],"tags":[763],"class_list":["post-80502","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","category-management","tag-hacking-growth","","tg-column-two"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v24.3 (Yoast SEO v24.3) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>What Is Growth Hacking? The Secret to Exponential Growth - Shortform Books<\/title>\n<meta name=\"description\" content=\"Growth hacking is a cutting-edge strategy for skyrocketing your business&#039;s growth. 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