Growth Hacking and Why It’s Critical for Good Business

Posted on: March 31st, 2017

Growth hacking is the new buzzword among businesses. Growth hacking can be defined as the use of rapid experimentation across marketing channels and product development to identify the best way to scale a business.

Growth hacking refers to a set of both conventional and unconventional marketing experiments.

Used by some of the most successful digital businesses and startups, such as Facebook, Uber and Airbnb, growth hacking involves using a clever combination of marketing and coding techniques to rapidly escalate the growth of your business.

While digital startups have readily taken to growth hacking to improve business performance, most large and medium sized businesses do not use this technique. However, growth hacking is a vital tool that can bring the continuous acceleration that your business needs.

Here are 4 reasons why growth hacking is a critical component for every good business.

1. Growth hacking accelerates the growth process

While most traditional forms of marketing benefit businesses by focusing on long term or continuous growth, growth hacking provides a platform for a quick launch by identifying a business’s area of expertise and saturating its consumer base.

It utilizes coding, quantitative analytics and viralty to provide this quick accelerated growth.

2. Growth hacking relies on past trends to create new growth paths

Growth hacking utilizes past trends and results to arrive at the various hypotheses that unlock consumer acceptance acceleration. A continuous process of growth hacking through conducting experiments to test various hypotheses can bring about successful new growth paths.

Some of the most successful tech companies today such as Twitter and AirBnB, are proponents of this approach.

3. Growth hacking helps effectively implement strategy

Most small and medium sized businesses already have an established strategy. They know who their customer base is, yet their marketing strategy fails to yield results.

Growth hacking is a tactical approach that emphasizes a continuous process of testing and repositioning. This tactical approach can solve such roadblocks.

4. Growth hacking can cause an immediate boost in sales

Unlike SEO which only increases a business’s online presence, growth hacking uses multiple strategies including Paid Acquisition, Viral Acquisition, A/B Testing and Analytics, along with SEO and Content Marketing, to cause an immediate surge in consumer interest and sales.

The above points clearly show that growth hacking is the missing link that is affecting most small and medium sized businesses. Therefore, it is critical that businesses start using growth hacking as an integral part of their business strategy.

As the Fed decides to ease interest rates, middle market acquisition financing structures will benefit in a number of ways. The underlying values of middle market companies will increase leading to a higher enterprise value and lower loan to value ratios for existing portfolio companies of acquisition financing lenders.

The role of acquisition financing is infrequently elevated above a functional transactional one. When a business needs financing to acquire, they go to the market and source acquisition financing to supplement their equity investment to close the deal. Despite existing in many different forms, acquisition financing is rarely explained in terms of the value it brings to the acquirer.

Acquisition financing underwriting usually focuses on business and financial issues that underpin the stability of cash flow. Providers of acquisition financing usually validate the durability of a company’s competitive advantage and the depth of its resource base. Environmental issues are usually not a major part of the analysis in today’s service and technology-based economy.