Growth Marketing Experiments: An Innovative Strategy for Better Growth

Do you remember the last time you saw any newspaper ad that contained even a quarter of the copy of this ad?

Chances are, you don’t. And even if you do, it must have been at least a 20-year old one! The simple reason behind this fact is the change in consumer behaviour.

Back in the day, copywriters had the privilege of writing long-copy ads because consumers had time to read them! Fast forward to 2020, consumers are not only short on time, but they have short attention spans and they barely read the newspaper! And that’s why modern-day advertising is much crisper and more visual. This is just one example that shows old marketing strategies cannot help you win new-age consumers.

Today, you cannot put out one ad and be completely dependent on its success. Simply because your ad will get lost in the sea of online content and consumers won’t remember your product. You need to test multiple ways of consumer engagement to ensure top-of-the-mind recall and drive conversions. For which, growth marketing is a perfect choice!

Growth marketing is a data-driven and experimentation-led approach. Instead of putting all your eggs in one basket and hoping to get results, growth marketing involves running multiple ‘experiments’, scaling the successful ones and eliminating the underperforming ones to increase your marketing efficiency. What’s more, this modern marketing technique provides you with a faster go-to-market strategy and helps you achieve better return on investment! How?

Read about our 7-step experimentation framework below.

Step 1: Understanding the Conversion Funnel using Pirate Metrics (AAARRR)

We begin by understanding your consumer’s path to purchase and setting particular Key Performance Indicators (KPI) according to each section of the sales funnel.

Step 2: Pick Areas of Focus

By studying the conversion funnel, we identify growth areas as well as gaps in the entire journey. Let us consider an example to help you understand better.

Say you want to leverage your brand’s legacy to increase sales. To achieve this, we would dig up insights, like:

Content consumption is highest among female audiences

Conversion rates are maximum for male audiences

Most of your consumers are millennials

Step 3: Brainstorm Experiments

Based on such insights, we would brainstorm ideas to create different experiments on the basis of:

1. Your product marketing strategy, which includes:

2. The problems we are trying to solve

For our case, we would create two separate strategies for awareness and conversion. Simultaneously, we would also leverage social media to appeal to the millennial audience. Experiment ideas could include:

Separate campaigns for females and males

Various awareness campaign mediums, like Adroll and DV 360

Testing conversion campaign mediums, like a social media-focused campaign versus content marketing-focused campaign

Hyperlocal campaigns based on the sales of the last 6 months

Different communication-related experiments

Step 4: Prioritize Ideas for Experiments

Generally, we dedicate 15-20% of the budget for experimentation. So, we prioritize only efficient and effective ideas to experiment. In this example, let us assume the ideas that offer the best ratio of potential growth to resources required are:

Step 5: Devise Hypothesis for Experiments

Using existing data from previous experiments, we would hypothesize how much growth each of our prioritised ideas would drive at each level. We would set the KPIs for each experiment based on the objectives.

In the above-mentioned case, let us assume that we come up with these hypotheses:

With increasing content consumption, sales would increase for both females and males.

Right messaging to the right audience through the right platforms would drive double sales in a span of 2 months

Step 6: Run Experiments

We would run the proposed experiments for a short period in the initial phase of our execution to check their performances. Then, we would analyse the results with set KPIs in a target versus achieved format.

After running the experiments for, say, 15 days, let us assume that we find out:

133% increment in time spent on the website, which means an increase in content consumption

214% increment in monthly sales

33% decrement in ACOS

17% increment in social media followers

DV 360 awareness KPI results were performing better than Adroll due to premium inventory

Google searches were increasing

Conversion from social media was increasing

 

Step 7: Scale the Winning Experiments and Drop the Others

Analysing the results, we would double down upon successful experiments and iterate them for continued results on one hand. On the other hand, we would learn about the experiments that are not doing well and stop them.

Based on the results of our example, we would scale strategies using:

DV 360 for awareness

Social media platforms for conversions

Google Search Ads

After traditional marketing, digital marketing became the new way to drive results. However, following simple digital marketing strategies is not enough in today’s competitive market. Because that is what your competitors are doing too! If you need to stay ahead of the curve, you need an elaborate strategy that uses technology and data to deliver better results.

At Amura, we follow a rigorous experimentation framework that goes beyond the generic standards. To find out what we, as a growth marketing agency, can do for your brand or product, get in touch with us.

Email at vikram@amuratech.com