3 Growth Hacking Strategies to Increase Business Profitability
Growth hacking has become a popular trend among startups, and with good reason. More of a particular mindset than anything else, growth hacking is a process of rapid experimentation across multiple departments including product development, marketing, and sales, in an attempt to identify the fastest and most efficient ways to grow a business.
The process of growth hacking is usually performed by cross-departmental teams, comprised of members with different backgrounds and positions such as product managers, marketers, developers, and engineers. They all share their knowledge to come up with low-cost alternatives to traditional marketing techniques.
But as popular as it may be, many entrepreneurs have a hard time leveraging and incorporating growth hacking into their overall business strategy. Here are three growth hacking strategies that will help increase your business profitability.
The User Experience
As we’ve said in the beginning, growth hacking is more of a frame of mind. Focusing on the customer’s point of view and analyzing their entire customer journey can be done equally as well in a multinational enterprise as it is in a single-person operation.
You should take some time and look at the user experience from start to finish. Is your website easy to understand and navigate? Does it support the customer journey by seamlessly guiding the user through the sales funnel? Is your site mobile friendly?
A poor website user experience will not only decrease your chances of making a sale, but it will also reduce its visibility when it comes to organic searches. Google cares about the user experience as much as it does about SEO – meaning that your profitability will have to suffer if you do not look at things from your customers’ perspective.
Conversion Rate Optimization
Conversion rate optimization sits at the core of every successful business. With that in mind, you should create an excellent converting offer. These offers, if done correctly, can transform every dollar you invest into two, three, or even more dollars. Without these conversion offers, you will not be able to scale or optimize your conversion rates. As a general rule of thumb, niched conversion offers have better success because not as many marketers are giving them. Cheaper items also tend to sell better. People are more inclined to impulse buy a $5 item, especially if it’s a good deal than a $500 offer.
Is your website optimized for conversion? Are you using tools like Google Analytics to track your conversions? Are you familiar with and understand the importance of things like cost-per-acquisition (CPA) or cost-per-click (CPC)? Always keep your customers’ pain points in mind when formulating these converting offers.
Data and analytics play a crucial role in your understanding of your audience. Who are your customers and where are they coming from? How long do they stick around on your website? What devices are they using when they go on your site? The better you know this information, the easier it will be for you to make fast and correct decisions as well as to boost your profitability. The data will also help you determine which parts of the sales funnel is not working correctly, allowing you to better direct your resources where they are needed most. Some of the best analytics tools are Sisense, Looker, Domo, Google Analytics, among others.
The world is turning evermore digital, which means that marketers need to fight more to achieve a competitive advantage. Conventional approaches to these situations will not always generate the desired result, indicating that growth hacking will become a more common practice going forward. If you encounter difficulty, a social media manager can help you in this regard.