A number of entrepreneurs know that no matter how great is their idea, startup ventures are known to be risky.
In light of that, the capacity to grow after launch is apparently the most difficult challenge a new business faces. Having the growth nuts and bolts right is a conspicuous prerequisite. But, obviously, you’ll have to build on the growth momentum so as to achieve long-term success.
At the center of any successful venture, there are two things: a great product and a huge market for that specific product. And additionally, the venture should be able to scale. Furthermore, to scale properly, it must balance the growth of five core dimensions: product, customer, team, business model and funding.
The major reason for the failure of most new businesses is untimely scaling of one of these dimensions. Indeed, 120K+ startups fail every day. The numbers are troubling because 90% of new companies don’t get the chance to see the light of the following day.
However, don’t dishearten with the statement as there are startups like Uber, Airbnb, and Swiggy as well – the ones who left the shell and have turned into the unicorns in the on-demand world. Every on-demand business has the power to grow as big as them.
Now, let’s put the spotlight on some of the growth hacking strategies of these businesses to learn something from them.
Rivalry exists in each market. Smarter companies invalidate the impact of rivals so as to remain ahead in the business. So, how would they do that? Let’s take Youtube as an example to understand the same.
Youtube’s offering – a chance to post videos of any kind on the web – was convincing, yet to truly succeed Youtube needed to scale up its quality content to a degree where it could pull in watchers and sponsors.
Competitions gave a way to develop the content creator network. At first, Youtube used to give its own prizes – but then implemented the strategy to include partners.
The most extreme step for Youtube was the extension of its partner program, enabling content creators to share advertising revenues. Their strategy worked and we are all aware of the channel’s growth at the present time. It’s remarkable.
One of the hardest things to get for any new born business is the initial traction. This is the place which most new businesses miss out. With operations in 65 countries and a valuation of more than $80 billion, Uber is an ideal example of quick scale-up.
It was only a local car hire company with an app matching supply with demand. The startup knew that it was solving issues related to traditional taxi services but it required traction.
Its base in San Francisco was the key. Uber at first focused around the tech network, organizing events and – essentially – free rides for those availing services. The individuals who utilized the service told their near and dears regarding the experience. The outcome was fast growth and a model that could be rolled out somewhere else.
Like Uber, the most-loved video streaming app Netflix drove early growth by focusing on a network of interest. The company started a DVD rentals business. To get the message out, it utilized internet bulletin boards and online forums utilized by avid DVD purchasers.
The strategy was to inform early adopters with a message that Netflix is offering content that isn’t easily available anywhere else. The strategy was expected to acquire only a couple of buyers. But, Netflix found itself processing 1,000 requests per day in a single month, without the requirement for any conventional marketing spend.
Reaching the target audience through websites like Reddit still works today and Reddit now has an ad product that can enable you to scale up this approach.
Creating and launching an application with lovely colors, vibrant pictures and profiting offers isn’t sufficient to drive the ideal growth to your business. Customers are all over the world. And, you should be noticeable to them. One of the simplest and solid methods for doing it is, enlisting your application or business in the most established online marketplaces.
Much the same as Airbnb did. In an online world where new marketplace models are jumping up each day, you don’t hear so much about Craigslist. But, some time ago it was viewed as a pioneer – especially in the US – and its pre-greatness helped Airbnb gain traction.
Using a simple growth hack, Airbnb empowered room renters to cross-post on both the Airbnb site itself and on Craigslist, a move that enormously increased the growth of the offer. As a result, Airbnb is one of the best travel rental websites today.
Brands that are enhancing the UX enjoy 200% more growth than their rivals, thanks to the resulting increase in customer loyalty. It’s essential to know “what moves clients to stay with you.” Stats show that winning new clients is multiple times more costly than keeping the ones you as of now have.
Starbucks Rewards is considered as one of the best retail loyalty programs in presence. They have made a reliable following of customers both with their user experience and revolutionary rewards program.
The program helped increase revenue to a shocking $2.65 billion, with executives pointing to the expanded participation in the loyalty program as the primary driver of these astonishing results.
There you have it! We hope you would now be able to come up with loads of growth hacking ideas for your business. So, what is the key takeaway for you from this post? What growth hacking strategies would you test to scale your business? Let us know. Maybe we can help you improve them. Get in touch here.