It is vital to document every change made and keep track of what works and what doesn’t. In growth hacking — as with many aspects of life — failures outnumber successes. But it’s an excellent framework for making your marketing work for you.
Growth hacking versus traditional marketing methods is a matter of identifying what messaging actually works as opposed to guessing and running a bigger risk of being wrong and spending even more time and money on ineffective campaigns.
As an example, we’ll zero in on a common metric: client acquisition cost, or CAC, which is basically how much on average your firm spends in order to gain a client.
Client Acquisition Cost — The Growth Hackers Perspective
To start, your firm should get into the habit of measuring its weekly, monthly and yearly expenditures for:
All marketing materials and collaterals
Ad campaigns and other outreach
Time spent on marketing
To measure CAC, you would then take the overall (or campaign-based) marketing expenditures over a given period of time (growth hacking suggests a smaller period of time — so, say, a week) and divide that by the number of new customers acquired. This will give you the average cost of acquiring a client.
In Growth Hacking, Commitment Equals Tangible Results
In turn, this can help you to determine:
Improvements needed for your overall marketing strategy