Growth levers are how we influence growth at a company. Explore how to identify these levers and use them to unlock meaningful growth.
- As marketers, growth levers are really just a fancy term we use to describe the mechanisms behind how we influence growth at a company. You have levers across the five primary areas of business. Consider the acquisition lever. We might trigger that lever through exclusivity, or a time box by which a promotion exists. We could use discounts or find ways to meet customers at their exact time of need. With activation, we might increase our customer support offerings, improve our user interface, or introduce email drip campaigns that teach about our product's benefits.
For retention, we can send alerts reminding customers about the service, introduce a new feature, or develop loyalty programs. On revenue, we may add related products at the bottom of the checkout page, add another product tier, or reduce our overall expenses. With referral, we can introduce monetary incentives for referring friends or create ample opportunities to generate social media mentions. Identifying which levers you should pull comes through a deep analysis of your data through the lens of that objective that you're after.
Growth hacking is all about being data-driven. The more insights you're capturing, the more you can correlate. For example, let's say we run a car rental company, and we're using online ads to increase reservations. Customers who prepay are less likely to switch to a competitor, so there's a strong incentive to secure online bookings. We take a close look at the data, and we see a huge number of conversions are coming from users at airports. We also see that orders are being made for same-day reservations.
So we ask, why? It's all about forming a hypothesis at this point. It could be that customers aren't planning ahead, so all the bookings are last-minute. Or it could be that other rental companies don't have the car that they requested in stock at that moment. We could create experiments to test our hypothesis, or we could conduct user surveys and ask why reservations were made online at the last minute. Let's say that we find out that the lines were just too long. Customers intended to order at the counter, but they reserved online hoping it would expedite the process.
This triggers a ton of ideas. We could leverage both acquisition and activation. We know that customers at airports are a prime target, but we also know that the user experience at airports is bad. We can improve our mobile ads so the value proposition of skipping the line is clear, or we can work to improve the processes to reduce lines at our locations, knowing that for those customers that aren't planning ahead, they're going to choose our line since it's the shortest. You need to take a close look at both the qualitative and quantitative data that you're collecting and use that in conjunction with your understanding of the customer journey to evaluate where opportunities for leverage exist.
This course was created by Madecraft. We are pleased to host this content in our library.
- Defining growth hacking
- Building growth teams
- Identifying your customers
- Creating OKRs
- Drafting your lean canvas
- Mapping the customer journey
- Managing the product life cycle
- Generating ideas
- Bouncing back from failure
- Identifying growth opportunities
- Retaining users
- Capturing data