Growth Automation Growth automation is any campaign that full funnel marketers use to increase customer lifetime value. Growth automation focuses on improving key customer metrics in the AARRR funnel. Getting engaged users to refer their friends effectively looped in new users while increasing user loyalty. Relying on a mix of offer segmentation, event-based email triggers and refer a friend marketing to increase revenue per customer. This is the point when the user is testing you out, seeing if your product or service is useful. Referral When a customer recommends your product or service to a friend, that’s a referral. Customer advocacy is part of customer loyalty as these actions like social sharing, referring friends and leaving product reviews are signs of true brand loyalty. You can look to impressions, CTRs, social shares and site visits as metrics of awareness. When we’re trying to move users through the customer lifecycle stages of acquisition, activation, retention, revenue and referral, it becomes important to use consumer psychology to influence these desired behaviors. I’ve thrown the book at these 12 growth automation terms, making sure that you’re prepared to utilize Pirate Metrics and other key growth frameworks to optimize your customer lifecycle.
Computers aren’t just for the front pocket of my shirt anymore. Fantasy stories like Game of Thrones are all the rage. Kids two-strap their backpacks to protect their posture later in life. Maybe you’ve witnessed (and appreciated) these changes yourself.
As being interested and involved in life became a social value, aka “cool” – I’ve simply become what’s known as well-informed. Part of this is reading three books a day. Ok, let me clarify: I am not a wizard. I read from three books a day. Philosophy starts my mornings off with big ideas, non-fiction at mid-day guides my self improvement, and it’s fiction at night for relaxation.
And I’m never without my dictionary. Because with all that reading, I need to keep up with my learning. OK – that sounded nerdy. But it’s true: how can you stay up on important ideas without understanding the terms that surround a topic?
That said, today I’m bringing you 12 key growth automation terms you need to know to start growing customer lifetime value this year. If you’re thinking of growth marketing and growth hacking, we’re on the same page. Once we’ve talked about what growth means we’ll talk Pirate Metrics and the “AARRR” growth marketing framework.
Pirate Metrics is a growth marketing framework coined by Dave McClure to scale company growth. It focuses on optimizing the marketing funnel by looking at five key phases of the customer journey – Acquisition, Activation, Retention, Revenue, and Referral – or AARRR for short.
Growth automation is any campaign that full funnel marketers use to increase customer lifetime value.
Growth automation focuses on improving key customer metrics in the AARRR funnel. Because without these campaigns, growth is a fleeting thing – like water from a “leaky bucket.”
By paying attention to the entire customer lifecycle and optimizing for customer experience, growth marketers use initiatives that engage their best customers with campaigns that can give out targeted offers, encourage customer loyalty, and measure satisfaction.
An example of this would be Dropbox’s refer-a-friend campaign. Hailed as an ingenious growth hack, the company saw a massive uptick in users and engagement by employing this BOFU campaign. Getting engaged users to refer their friends effectively looped in new users while increasing user loyalty.
Growth automation teams need software platforms to run these highly segmented campaigns. Relying on a mix of offer segmentation, event-based email triggers and refer a friend marketing to increase revenue per customer. Growth marketers rely upon creative initiatives, data analysis, and an ever-widening personal knowledge base to effectively engage customers.
Whether it’s social traffic via content marketing or a landing page visit via AdWords, your campaign goals are to generate new qualified visitors and leads. Testing new audience targeting techniques, different ad creative combinations and producing various types of content.
Customer acquisition can show you how your marketing channels are performing. Marketers should look at web traffic, social followers, email subscribers, content downloads, and first purchases to measure performance.
The activation stage means people have taken their first action with your product or service. IE visited your website, downloaded your app, or made their first purchase.
Just because they’ve signed up for a free trial or downloaded your app doesn’t mean they’re active. This is the point when the user is testing you out, seeing if your product or service is useful.
Onboarding and user-experience are key focal points here, as early success leaves a lasting impression and can influence later purchases. Look at metrics like repeat visitors, re-targeting CTRs, email opens/clicks, and trial activation rates.
Retention is the amount of incremental revenue you can generate from a customer.
Here’s where Pirate Metrics and growth automation really take off. Once people have started using your product or service, you really want them to keep it up. Why? Because your product rules – obviously – but when users stick around your bottom line increases.
Now you can think of cross-sells and upsells, using lifecycle emails to retarget and re-engage your best users. Your brand…