Growth Hacking vs Performance Marketing, What’s the Difference? 📖
What is Performance Marketing?
What is Growth Hacking?
Sean Ellis the godfather of the “growth hacking” approach in his book “Hacking Growth” states that growth is not achieved through traditional marketing plans, expensive launch, and huge ad spend, but rather utilizing software development to build marketing into products themselves. Our capability to collect, store, and analyze huge amounts of data, and being able to track it in real time, is now allowing business to experiment with new features, messaging, or any marketing efforts- at an extremely low cost, higher speed, and higher accuracy. The result from this was the surfacing of an approach to fuel growth through cross-functional experimentation, high-speed, for which Sean Ellis coined the term “growth hacking”. Growth hacking is not just about acquiring new customers it’s about how to retain these customers and keep them coming back for more.
Growth Hacking is not…..
- Managing social media platforms for an SMB
- Creating facebook ads to drive traffic to a website
- Following people on Instagram to get follow-backs
- Going viral on YouTube
The growth teams bring together people who have a great understanding of the strategy and goals of the organization, and have expertise to analyze data, implement changes in design, functionality, and marketing of product experiments to these changes.
- Growth Lead
- Product Manager
- Software Engineer
- Marketing Specialist
- Data Analysts
- Product Designers
The hacking process provides a set of activities that growth teams should tackle to find growth opportunities through rapid experimentation to find the best performers. It is a continuous cycle including four steps: 1. Data and insight gathering; 2. Idea generation; 3. Experiment prioritization; and 4.Testing the experiments.
How are growth hacking and performance marketing different?
Performance marketing is focused on acquiring new customers, while growth hacking is also concerned with keeping existing customers happy so they buy again and tell their friends. It is important to note that performance marketing and growth hacking aren’t competing against each other. In fact, many performance marketing tactics can be used as part of an effective growth marketing strategy.