Growth hacking and growth marketing are very similar terms, and they are often used interchangeably. However, these are two different strategies, both of which have their own time and place.
The subject can be simplified like this:
Growth hacking aims for quick results and rapid growth, while growth marketing is done in the longer term to achieve sustainable growth.
A startup likely benefits more from growth hacking, while an established brand can rely on growth marketing methods.
In this blog post, we will take a closer look at the similarities and differences between growth marketing and growth hacking and help you decide which suits your brand better.
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It can be extrapolated from the terms that both growth marketing and growth hacking aim for growth (thanks, Sherlock 🕵️)
The differences arise from the means and time frame in which growth is achieved. The strategy is also different.
Growth hacking is used to get results in a short time based on data analysis and continuous experimentation. Growth marketing focuses on customer acquisition, building a brand, and gathering referrals systematically and long-term.
Of course, both have a lot of similarities as well. Let's take a quick look at both separately and then conclude the similarities and differences.
Growth hacking can be summed up in the question: "How can I get as many customers as quickly as possible with limited resources?".
Growth hacking works best when you have a small budget and little time but need massive growth.
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It is a popular (if not the only) option in startup companies. Growth hacking brings cost-effective and fast ways to grow when your brand is relatively unknown.
Growth marketing (a.k.a. "traditional marketing 2.0") utilizes brand and recognition to achieve continuous, sustainable growth.
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Growth marketing focuses on finding prospects and converting them into brand advocates.
A growth marketer takes advantage of a brand to differentiate a product or company from competitors. They create content around the brand to retain customers and get referrals. The content is often highly tailored to the customers' needs.
There are several similarities and, of course, differences between growth marketing and growth hacking.
Both strategies aim to acquire and retain customers. Both also utilize data and experiments to achieve goals.
Data is the main similarity: Data is critical for all marketing methods, especially for these two growth-oriented methods.
Growth hackers are constantly experimenting with data. For a growth hacker, data is an essential tool acquired through, for example, A/B testing or lead generation. Only by utilizing data can they conclude whether their experiments work or not.
Growth marketers use data for the long term. Based on the data, long-term strategies are devised, updated, and course corrected toward the goals.
🎯 Goal. Revenue growth by acquiring, retaining, and activating customers.
📊 Data. Goals are reached by constantly collecting and analyzing data.
🔄 Process. Experimenting with new things, data-based decision-making, and continuous development are at the center of both marketing methods.
📲 Product. The requirement is that the product or service is good enough and there is a demand for it in the market.
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The benefits of these two marketing methods for your brand will become clear when you consider the following questions:
A growth hacker doesn't need a brand to support growth, while for a growth marketer, the brand is the most important thing.
Think about these social media brands, for example, Facebook, Instagram, etc. It is natural for these companies to take advantage of their brand recognition.
But what about a company no one has ever heard of? How do they utilize their brand in marketing?
They don't. That's why growth hacking tactics that don't depend on recognition are needed.
If you have a strong brand, use it for growth marketing. If your brand is still in the building phase, try growth hacking.
In essence, growth hacking is fast, growth marketing is slow.
Maybe your brand won't become the new Google overnight. But if you need quick results, growth hacking can produce significant growth in a short period of time.
If your focus is on long-term growth, you can take advantage of growth marketing.
You have to start somewhere, and this is where the differences between growth hacking and growth marketing are highlighted.
Startups rarely use a significant amount of data right at the start because it isn't there. But growth hacking can be used to collect data and react to changes swiftly on the go.
When enough data has been collected and some growth has been achieved, it's often beneficial to switch to long-term growth marketing methods.
However, this does not mean that growth hacking can only be used when the company has just been set up. Even a well-established and successful company can benefit from growth hacking tactics.
Despite their similarities, growth marketing and growth hacking require slightly different skills. You could think of these skills as the flip sides of a coin.
Which way does your team lean? Do you work slowly and thoroughly considering every change, or do you react quickly based on data?
By answering these four questions, you probably have an opinion on whether you should choose growth hacking or growth marketing.
In the end, however, it is good to state that neither of them alone may be enough, and there are also other ways to bring about growth.
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1. Is your product/service fit for the market?
If you're still figuring it out, choose growth hacking. If there is a market and demand for your product, choose growth marketing.
2. Is your product/service suitable for viral growth?
If there is potential for going viral, capitalize on it with growth hacking.
Growth hacking is ideal for low-cost B2C products with a large potential customer base: social media sites, mobile games and productivity apps, to name a few.
Growth marketing, on the other hand, works best with more expensive products, or products in a niche market, characterized by longer sales cycles.
3. How saturated is the market?
If your product is unique or without competition, you can focus on growth hacking and ignore brand building.
But in the long run, you should be prepared. As soon as competitors start appearing, it's better to make sure you have a strong brand behind you. You can achieve this with the help of growth marketing.
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Growth hacking aims for quick results and rapid growth, while growth marketing is done in the longer term to achieve sustainable growth.
A startup likely benefits more from growth hacking, while an established brand should rely on growth marketing strategies.
By reading this blog post, you probably got an idea of whether you should choose growth hacking or growth marketing.
👉 Still not sure what to choose? book a free appointment with our SuccessGuide