What is Growth Hacking? 🚀 How to Build Massive Businesses with Growth Hacking Explained

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Growth Hacking is what allows a few broke college kids to go from starting a business out of their dorm to owning a billion dollar corporation. And in this video I explain what growth hacking is.

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In this video, I am going to answer the question “What is Growth Hacking”. You may have heard this referred to in a more specific context like growth hacking marketing. And while growth hackers do use marketing, growth hacking, as a whole definitely encompasses more than just what most people think of when they think marketing, which is why this term was created

At first I didn’t really understand why there was even a different term for this. Mainly because I was familiar with everything that growth hackers do because of my background in marketing and in startups. And that’s just it! What growth hackers do is not necessarily new. It’s simply a cross-functional role that exists outside the divided structure of traditional business organizations. In a traditionally structured business you’ll have different departments such as product development, IT, finance, and marketing . But Growth Hacking exist outside of all of these traditional functions and is involved in basically everything that directly contributes to growth.

I see growth hacking as primarily involved in two functional areas; marketing and product development. On the marketing side, you are focused on driving customer acquisition and on the product development side you are focused on optimizing your product to influence growth, whether it’s through a better user experience to increase retention or designing a product that directly promotes sharing. With growth hackers, both marketing and product development are founded in lean startup strategies. Meaning you are testing, getting customer feedback, and rapidly iterating to fully optimize the product and growth strategies. Also, proper growth hacking strategy is reliant on data driven decisions.

This is why I say that growth hacking is nothing new. Good marketers are already practicing lean strategies and making data driven decisions. Then on the product development side we have agile development and it is common knowledge that products need to be influenced by some form of customer feedback, whether it’s through surveys distributed by the marketing department or through back-end data capture and analytics within the product.

Alistair Croll, explains that growth hacking is 80% best practices and 20%subversiveness. 80% of growth hacking strategies are founded in strategies that marketers and product developers should already be using. I think at its core , the 20%, is creativity. Basically how can you think outside the box to give yourself a competitive advantage and achieve growth that your competitors cannot achieve and that will allow a small startup to compete with and dethrone the big guys.

This creativity needs to be focused on one thing called a viral-coefficient. There is a common measure in marketing called the referral coefficient that measures how many times a customer refers people to your product and how many of those referrals convert to customers. Typically companies have referral coefficients that are less than 1. But the holy grail is when companies achieve a coefficient that is greater than one, which is considered a viral coefficient. Which is when you see growth charts that look like the coveted hockey stick growth that all growth hackers and all startups are looking to achieve.

And this vitality can be achieved on both the marketing and the product development side. I‘ve mentioned this idea of shareability and virality in many of my marketing videos, On the product development side, shareability can be addressed through overall customer experience .You can also promote virality by integrating actual share functions within your product.

All of these things I've talked about added up together is growth hacking. Here is a quick recap:

Growth hacking is when marketing, product development, and lean startup strategies are combined and solely focused on Growth.

This growth is achieved through creative marketing and product design that promotes virality or at least utilizes a comparably small budget to achieve disproportionate returns on the capital deployed.

That’s really it. Just think outside the box, run experiments, make sure the decision you make are data-driven, and aim for disproportionate results. Mainly virality.

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