What is growth marketing? What should we do at each step?

What is growth marketing?
What is growth marketing?

 In this article, I will explain the definition of AARRR, which is often used in growth marketing, and how to apply this AARRR model to our business.

Have you ever heard of growth hacking?

Growth marketing refers to a methodology for fast growth by limiting the business to the 'marketing' field by applying the technical part and conceptual model of growth hacking. If growth hacking starts with verification through PMF before the product is released, growth marketing has a slightly different scope in that it is focused on the part that can grow already existing product marketing. However, rather than distinguishing between growth hacking and growth marketing, it is more important for us to grow our business. I believe that AARRR is a thinking model or framework for business execution that is often used in growth marketing to grow an online-based business. The definition of AARRR can be found in detail in the article below.

In fact, Huddlers, who is in charge of growth marketing consulting, meets many clients. Many customers know the definition of AARRR, but there seem to be many people who are thinking about how to apply it in our business. It is for the following reasons.

So, after thinking about how to create a growth marketing strategy that many people can easily implement, I decided to write an article dealing with the 'growth marketing for action strategy. In fact, it is impossible to describe all growth marketing strategies in one glossary. So, in the future, I plan to write an article with a 'growth marketing strategy that can be implemented as a series.

AARRR, let's take a look at the meaning again.

First, the AARRR model used for growth hacking or growth marketing is briefly summarized below.

What is growth marketing?
What is growth marketing?

We use the same strategies as above when launching and growing service. At each stage, we should be able to ask ourselves the above questions. And we must be able to find out what is a priority in the current situation of our business. 

Visually, of course, in the order of the arrow, inflow (acquisition stage), induce the customer's first experience (activation stage), create repeat visits (retention stage), and monetize (monetization stage) It seems to be proceeding in the order of increasing market share and then acquiring more new users through the viral of customers (recommendation stage).

Misconceptions about AARRR

1. You do not have to go through AARRR in order. 

Personally, I think that first of all, the customer's first experience is well induced (activation stage), and then repeat visits are continued (retention stage), and after securing some returning customers, advertising for customer inflow is carried out. That's right. It does not lead to a purchase, because emphasizing only the inflow is rather pouring water into the bottom. So I want to emphasize to you that the AARRR models don't necessarily have to go in order.

2. Depending on the type of business model, not all steps need to be executed.

For example, in the case of the retention phase, there may be a business that has to induce repeat visits, and there may be a business where the customer experience ends after only experiencing it once. Also, in the case of the monetization stage, if the market size is set to some extent, it is good to take action only according to the size of the market. As such, not every industry has to do every step in AARRR. In our business, we need to think about which steps are needed first.

So anyway, since AARRR is literally a framework for thinking, it's really abstract and different people have different interpretations. Huddlers is helping various clients to internalize growth marketing. Based on that experience and know-how, we will proceed with the story of what steps must be put into practice in order for the business to grow.

What should we do at each step?

Step 1: Acquisition

Question: How are you going to attract customers?

What we should do:

  • ❶ Planning content that can induce customers to click

  • ❷ Search branding that makes our brand appear when you search

Step 1 asked questions about the acquisition strategy to attract customers. In order to have a good influx, it will be necessary to understand the behavior of how users enter our service. Customers may come in through advertisements, or they may enter our website or app by searching for specific keywords on their own. If so, we need to plan advertising content that can attract customers' clicks, and make our business appear when customers search for specific keywords.

Step 2: Activation 

Question: How will you create a first experience (conversion) for your customers?

What we should do:

  • ❶ Finding LMFs to Maximize Performance Marketing Performance

  • ❷ Data analysis and design that can track customer behavior, event taxonomy

The second stage is the activation stage that leads customers to the final conversion in earnest. If you have planned some advertising content in step 1, you should be able to observe the purchase conversion rate through retargeting and message testing to find continuous LMF. In addition, data analysis and design should be prioritized because it is necessary to observe and analyze the behavior of customers who visit the web and app.

Step 3: Retention 

Q: How do you get customers to come back?

What we should do:

  • ❶ Lead Scoring

  • ❷ Managing CRM and CRM Scenarios

Step 3 is the step where you have to induce customers to come back and purchase again by continuously posting content and delivering messages to the web app. Of course, there are no important steps, but CRM is a step in the spotlight as performance marketing is declining in popularity these days. It may be necessary to design a CRM scenario that divides customers who have joined our business according to random criteria, scores them and manages them accordingly, and sends push messages or mailings through various CRM tools.

Step 4: Revenue 

Question: How will you drive greater monetization than before?

What we should do:

  • ❶ Media Expansion and Multimedia Mix Strategy

  • ❷ Platform optimization through A/B testing

  • ❸ Expansion of services and products to increase customer unit price

Stage 4 is the monetization stage. A startup that has grown continuously will need to quickly turn to a profit and continue to grow its business. There can be many different ways to do that. There are cases where advertising coverage is greatly increased with multiple media after running only limited advertising media, better results can be achieved through A/B testing of web and app, or when the service is vertically expanded to increase the unit price there will also be

Step 5: Referral 

Question: How are you going to spread it among your customers?

What we should do:

  • ❶ There is a certain amount of industry spread among customers.

  • ❷ Provision of stories and communication by media

  • ❸ Artificial viral through promotion

Step 5 is the recommendation step. For example, in a sensitive industry such as plastic surgery, it will be difficult to go viral. It seems that the industry or brand is set to some extent in order to spread the story among customers. Artificial viral can also be created through various promotions, but the effect will be short-lived. There are various cases such as Dropbox that can cause viral among customers, but I thought about how to use it in Korean businesses.

Huddlers' growth marketing execution strategy series begins.

What is growth marketing?
What is growth marketing?

The image above is the main series of growth marketing that Huddlers will cover in the future. It is also a concept you must know if you are doing growth marketing. Perhaps the definition is still a bit vague, and you may not know what to do. In the future, we will publish a series in a more specific language to make growth marketing actionable for those of you reading this. Thanks for reading this long post.