AMA: Observable Head of Growth Marketing, Erika Barbosa on Growth Marketing Strategy

Some key components of a successful growth marketing strategy consist of clear goals and metrics. At the core of growth marketing is the ability for testing, analyzing, and iterating, and you can't undertake this responsibility without clear, measurable goals. Next, you need to take a holistic approach to growth marketing. Ideally, you will have several different growth levers based on your position in terms of product-market fit (PMF) and ideal customer profile (ICP). To set yourself up for success, you must have a clear understanding of the audience you are targeting.

I'm of the perspective that a growth marketing team should be cross-functional, especially in the initial stages. From my experience, this dynamic evolves as the organization and marketing department mature. One version of what this could look like is: * Growth Marketer * Designer * Engineer * Data Analyst It is critical for this team to collaborate with other departments, including sales, customer success, and content, among others. The rationale for this cross-functional approach is that it enables the team to move faster in the spirit of growth marketing. Otherwise, the growth marketing function takes the shape of demand generation, requiring a slightly different set of skills, mindset, and approach.

Community engagement is a powerful aspect of growth marketing, including audience building, brand awareness, trust and credibility, and feedback loops. Despite the various social media platforms, influencer campaigns, and ad campaigns, word of mouth still holds strong. Building and fostering meaningful relationships will always be a component of a successful growth marketing strategy. One area I would caution against is trying to artificially create community engagement. This form of engagement should really be the result of an incredible product that solves a real problem. Trust is built over the course of several micromoments, and your community will be able to tell when it is not authentic. Remember, we are humans marketing to other humans. Let that guide your community engagement strategy.

I believe you need to identify your target audience before you can be successful in your growth marketing initiatives, especially if you are working with a budget. There are a few ways to go about pinpointing your audience, such as: * Market Research * Customer Personas * Current Customer Analysis * Social Media Insights * Competitor Analysis * Behavioral Data This is not a 'set it and forget it' approach. Depending on where your business stands from a maturity standpoint, this can be iterated upon as early as monthly or quarterly. It's critical to utilize signals from the market to better understand if your product is resonating and truly solving a problem.

I believe the main difference between traditional marketing and growth marketing lies in the overall approach. Traditional marketing typically relies on tried-and-true methods, while growth marketing tends to be very data-driven, adopting an experiment, iterate, rinse and repeat mindset. Traditional marketing also boasts a longer legacy and specific methods for measurement. Growth marketing, on the other hand, isn't truly growth marketing without being data-informed. The language used in the two disciplines also varies—traditional marketing typically speaks in marketing funnels, whereas growth marketing speaks in loops. Lastly, traditional marketing tends to pass the baton at sign-up or marketing-qualified lead (MQL), while growth marketing typically takes a more full-funnel approach. As you can see, while there are similarities, the philosophy around measurement and approach differs.

There are indeed ways to pursue cost-effective growth marketing for startups! The key here is not only what is cost-effective but also what delivers an impact on the desired business outcomes. While this can look different depending on the company, a few tried-and-true approaches include: * Content marketing * Social media marketing * Email marketing * Referral programs * SEO * Growth loops (e.g., UGC) * Free trials and freemium models * Community-led All of these approaches can be scaled appropriately depending on resources and budget. I'm taking the approach of little to no budget with my recommendations above. However, for early-stage startups, I highly recommend the approach of time-bound and low-budget experiments. If the experiment has legs and you are collecting helpful signals that can inform the strategy, then consider branching out into additional iterations and/or experiments.

One growth strategy I highly recommend to increase customer lifetime value is segmentation. The more we can address a customer’s specific needs, the more impactful the results will be. Customers want to be heard, and segmentation enables a more tailored approach. Loyalty programs can also be impactful. Where it makes sense, I’m seeing more traction with gamification related to rewarding repeat and loyal customers. Another significant driver in accelerating customer lifetime value is having exceptional customer service. I view this as a must-have, not a nice-to-have.