The technology industry has seen its fair share of high-flying unicorns over the past decade. Companies like Airbnb, Uber, and Dropbox have achieved valuations in the billions of dollars by mastering the art of rapid growth through innovative marketing techniques known as "growth hacking."
While each company has its own unique story, examining their strategies reveals common lessons that can benefit any business looking to spur viral adoption and increase market share. In this article, we will explore five key lessons on growth hacking from today's leading tech unicorns.
Growth hacking requires an experimental mindset. Top tech unicorns are constantly testing out new channels, tactics, and campaigns to accelerate growth. They know that not every idea will be successful, but as long as they quickly iterate and double down on what works, they will hit on the right growth levers.
Uber epitomizes the power of rapid experimentation. Early on, the company tested numerous tactics to incentivize both drivers and riders to join and remain active on the platform. Strategies ranged from referral programs to driver rewards to unprecedented promotions for riders. This process of trial-and-error allowed Uber to identify the combinations that spurred viral adoption in specific markets.
The key takeaway? Don't be afraid to try new strategies and track their impact through split testing and data analysis. With the right tools, you can run low-cost experiments to uncover what resonates with your audience.
Leverage Influencers and Community
Influencers and brand advocates can become force multipliers for growth hacking. Savvy tech unicorns like Airbnb excel at rallying supporters to organically spread the word about their brand.
Early on, Airbnb built momentum by having hosts share their positive experiences with friends and on social media. This generated interest and credibility among potential guests. Airbnb also curates local influencers and brand ambassadors in each market to expand its grassroots presence and visibility.
No matter your industry, identify supportive micro-influencers and loyal brand advocates who can provide word-of-mouth marketing for your company. Support their initiatives and make it easy for them to highlight your brand.
Optimize the User Experience
The user experience (UX) is another important element of growth hacking.Ensuring a smooth onboarding process, intuitive interface, and overall positive experience will minimize friction when acquiring and retaining users.
For example, many growth hackers praise Dropbox's referral program for its seamlessness. To access additional free storage space, users simply click a referral link and the bonus gigabytes instantly appear in their account. This creates an effortless incentive to spread the word among friends.
Take the time to walk through your website, app, or sales process from your customer's eyes. Identify and eliminate any friction points that may be hampering conversions and activation. A stellar UX greases the wheels for viral growth.
Double Down on Your Strengths
Growth hacking enables rapid iteration, but companies still need to determine where to focus their efforts long-term. The most successful tech unicorns double down on whatever is driving their "engine of growth" in a scalable way.
For Uber, its core growth engine was activating drivers, which expanded the service's availability and in turn attracted more riders in a viral loop. For Slack, it was creating virality and addiction within teams through an exceptional product experience. Identifying your company's unique growth accelerant allows you to double down on that strength.
Analyze your data and user feedback to determine what your special sauce is. Then build repeatable systems and processes that amplify your natural traction channels. Doing what you do best will set you apart.
Make Metrics Your North Star
It’s impossible to grow efficiently without tracking the right metrics. Top tech unicorns obsess over their key growth metrics and prioritize strategies that move the needle on them.
For example, sticky growth hacking tactics will aim to improve customer retention rates, average order values, session times, and other engagement metrics. Paid marketing will focus on cost per lead and conversion to evaluate return on spend.
Identify the key numbers that measure your most important business objectives and growth levers. Continuously track them to determine the ROI of your hacking initiatives and allocate resources accordingly. Maintain vigilance on your north star metrics to stay aligned with your growth goals.
Growth hacking will look different for every company, but these lessons provide a blueprint for developing your strategy. By taking an experimental approach, leveraging community, optimizing for seamless user experiences, doubling down on your strengths, and following the data, any business can gain an edge with viral marketing. Though the specifics will vary, tech unicorns prove that strategic growth hacking is instrumental for skyrocketing a startup's success.
With the right mindset and tools, your business can begin harnessing these lessons today. Start testing channels and tactics on a small scale to see what resonates. Gather user feedback and optimize friction points. Empower supporters to share their experiences. Track metrics rigorously to double down on what works. Growth hacking takes dedication, but by mastering these lessons from leading unicorns, your company can join the herd.