Growth Marketing

What is Growth Marketing? Learn Growth Marketing Playbook to Accelerate your product & Growth Career.

4 Key models to drive hyper-growth.

Growth marketing is all about managing the end to end customer journey from that initial awareness to consideration to purchase intent and also analyze behavior data to optimize the user experience to drive retention and achieve desired goals.

Data and analytics play a very important role in driving growth for the company.

4 Key metrics that are very important for every marketer in today's digital world to understand and apply to drive growth.

1. Attribution Model For Acquisition:-

Define the metric which is most important for you and identify the touchpoints that lead to conversions.

Step 1:- Identify All Touchpoint

Today, you have more ways to reach potential customers than ever before. But the more channels you utilize, the more difficult it becomes to determine which channels are really providing value. So it is important to identify all touchpoints for your marketing channels.

Step 2:- Customer Journey Map (Once you identify the touchpoints then you have to track/Map the customer journey across all touchpoints)

How much influence did each channel impression have in a conversion?

In the example above everyone was part of the goal scored (sale), but the problem is who did the better job who’s the most important here is it the google search (last clicked) or Facebook ads (first clicked) who knows or is it all of them.

Step 3:- Attribution Model (Once the touchpoints are mapped it important to decide the attribution model to distribute credit fairly amongst the channels helping in achieving the desired goals).

Different Attribution Models.

Based on the above example credit given to each touchpoint based on different attribution models.

Single Touch, Last Clicked:-

100% credit given to the last touchpoint, focusses on high ROI touchpoint but misses early influential touchpoints.

Single Touch, First Click:-

100% credit given to the first touchpoint, great for driving initial traffic but misses repeat visit and user journey.

Multi-Touch, Linear:-

Credit is evenly split among every touch but tends to overvalue the middle of funnel touchpoint.

Multi-Touch, Position Based:-

Multi-Touch, Time Decay:-

The time decay model is the most advanced model we provide. It divides credit to each filter based on the number of days before the conversion.

Custom attribution model:-

Depending on the business model decide which attribution model is right for your business.

• If its a low involvement business then it is important to look at last-click attribution.
• If its a high involvement business then it is important to look at the linear or time decay model.
• Or you can create a custom model using Markov Chains or Shapley Value.

2. Funnel Analysis — To increase the conversions

Funnel analysis involves mapping and analyzing a series of events that lead towards a defined goal.

Once you have decided which events need to be tracked then you can tie it up to the selected attribution model to see which channel is getting you the most customers.

Example:

Let assume for a health-tech company the final conversion will be paid teleconsultation and the funnel to achieve this will look like below.

Funnel analysis visually depicts the conversion between the most important steps of the user journey.

As you can see on the above funnel 15% of visitors convert to signup which is good according to industry standard and of 7,500 users who have signed up 3000 users took paid consultation (40% conversion from the sign up and 6% from visitors).

There is a clear issue with the retention here as only 17% of users are coming back, so the company needs to focus on cohort analysis(will explore below) to go to the bottom of the issue and drive retention.

It is important to continuously analyze high dropoff points in funnel, do series of test and experiments to optimize onboarding and drive conversions.

Funnel Analysis with Attribution helps us to understand the contribution of each of the marketing channels

If you look at the contributions by channels above

• Google search performs the best with 25% contribution in traffic and contributes 50% towards paid customers — It is pretty clear the health tech company needs to pay more attention to SEO and content marketing as google search is the most effective channel.
• Facebook Ads aren't performing well as they contribute 25% of the visitor's traffic and only 5% towards the paid customers- The company needs to either decrease spends on Facebook as the CAC is very high or look for better ways to optimize campaigns on Facebook through adding Facebook pixels and focussing on remarketing and lookalike ads.

3. Behaviour Cohorts:-

Behavior data and analytics is the most critical in driving the top 3 metrics of online business. (customer acquisition, customer engagement & customer retention)

Let’s take an example:

Every morning before reaching office you visit the Starbucks, as soon as you enter the coffee shop the barista(Ronnie) greets you by your name,

Good Morning Vivek.

Then you go and settle at the table near the glass window and in the next 10mins, Ronnie comes and serves your preferred cappuccino with less milk and sugar.

Now you are in good mood by having your favorite coffee, you make the payment and leave for your office greeting bye to Ronnie.

Now if you observe closely in the above example there’s a personal relationship you have formed with the barista + the barista knows your preference + and it feels like you matter.

So,

“Future of marketing is capturing this feeling of personal service with each customer”

“Target users based on what they need & want and when and where they want”

You need to have a holistic picture of the customer by collecting customer's demographic and behavioral data and turn insight to create personalized experiences for customers to generate more revenue.

Behavioral analytics uses customer information to derive the best way to communicate with a customer.

Does that customer make decisions based on product specifications and benefits?

Or

Are they more likely to be influenced by discounts/deals?

Behavioral Cohorts

Behaviour Cohorts group users based on the activities that they undertake within the website, app during the given period of time.

As you can see in the example above just segmenting customers based on broad demographic characteristics won't help.

In order to understand customers better, we need to add behavioral data also to have a holistic view.

Once done behavioral cohort divide users by the behaviors they exhibit in your channel within a given timeframe.

4. Behavioural Targeting:-

Once you have created behavioral cohorts it is important to target personalized messages based on the user behaviors.

Behavioral targeting is a marketing strategy that uses historical behavior to personalize the types of communication consumers see.

Especially in today’s world of mobile apps and mobile websites, Behavioral Targeting is massively effective and probably the only way to go!

Think of 3 of the biggest apps in the world — Facebook, youtube, and Snapchat — and you know that every message/notification these apps send you is personalized and behaviorally targeted to you. It’s about alerts on your feed, from your friends, and in the case of youtube for your preferred content from channels you have favorited and follow.

If you think e-commerce (Amazon), think Entertainment (Spotify, Netflix, etc.), Food Tech/Delivery, or even utility (Uber etc) you’ll realize that 90% of their engagement messages are all personalized based on your behavior. If you leave something in your shopping cart, you get notified of price changes on it; if you listen to a lot of rock you get notified of new rock album releases and so on.

couldn't have explained it better source:- https://www.quora.com/How-effective-is-Behavioral-Targeting/answer/Sunil-Thomas-6

Cart abandonment message from Flipkart

By determining the behavioral preferences of the customers coming to their site organizations cant can align the language and behavior of the Web site to provide those customers with the best shopping experience, one that feels tailored to them. Systems that analyze past purchase patterns can recommend related products.

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Enjoy The Journey

Marketing can be difficult to perfect but it’s an absolutely necessity for most organizations. Marketing can be a lot easier with the proper analytic systems in place.

I am Manish Lamba, my mission is to help organizations grow online audiences and monetize.

I like to share my skills and knowledge freely, both with my teammates and with the broader community as it helps deepen your own knowledge.

you can always reach me on my email:- manish.lamba1982@gmail.com