Are Marketing Execs Starting to Thinking More Like Growth Hackers?

A new research brief came through my inbox a couple of weeks ago.  In the past I probably would've read a research brief like this and found the information interesting.  But reading this new brief now, through the lens of a Growth Hacker, I see the insights of the report a bit differently.

Pulling from this research brief called Marketing Morphing from Expense to Revenue; Measured on ROI, it

was blindingly clear that marketing executives are starting to hear the message of marketing that Growth Hackers, by the nature of who we are, hold true to.

Now, in the brief, the term ROI is used extensively and we can make a safe assumption that ROI is being measured largely by revenue, as the title suggests.  But, in the early stage of a start-up or a growth company, ROI can be associated with the milestones and objectives of the phase they're at.  I would even suggest that KPIs for an established brand or company can also be measured as an ROI as long as it moves the company towards some established growth goal with that growth goal having an impact on revenue.

So let's go through this research brief and see what it tells us as Growth Hackers.

• According to the Economist Intelligence Unit’s survey of high-level marketing executives worldwide, more than 80% say they need to restructure marketing to better support the business. And 29% believe the need for change is urgent.

Yes, I think just about any Growth Hacker that's been operating outside of the traditional marketing world can agree that this change of thinking is urgent.  As Growth Hackers, we realize that if it does not drive or contribute to growth and isn't track-able and measurable, it's not something that should consume resources of staff, energy or budget.

• Marketing will increasingly be seen as more of a source of revenue. The proportion of companies where marketing is viewed as a cost center will dwindle and the number where it is seen as a driver of revenue will grow. In three to five years, survey respondents say, approximately four of five companies will classify the marketing function as a revenue driver.

The very nature of a start-up or growth stage company does not allow for anything to be a "cost center". Avoiding cost centers is pretty much the purpose of Growth Hacking.  Growth Hacking also does not view marketing as a separate center but is organically part of the organization as a whole.  Marketing is baked into the product and business from the beginning and operates in parallel with the development or engineering teams right for the start to develop a product that fits your market to where the marketing, while it may seem organic, is well planned and tested to fit the market they're shooting for.

• The customer experience is increasingly seen as a key to competitive advantage in every industry. Slightly more than one-third of marketers polled say they are responsible for managing the customer experience today. However, over the next three to five years, 75% of marketers say they will be responsible for the end-to-end experience over the customer’s lifetime.

I would bet you that if you ask any Growth Hacker or successful launch company that used Growth Hacker Marketing would tell you that customer experience is what it's all about!  When you read this finding from the research brief, you almost have to wonder what marketing executives are thinking.  The customer and growth of users is the lifeblood.  It's well stated in the Growth Hacker community that Every Failed Start-Up Has a Product, What Failed Start-Ups Don't Have is Enough Customers.  Knowing that, if your're not thinking about your customer or the customer you're trying to obtain,  what in the world ARE you thinking about?

• A marketer’s greatest achievement is an engaged customer, says the report. Because an engaged customer keeps coming back, engagement is defined most often in terms of sales and repeat sales. 63% of marketers polled say that engagement is manifested in customer renewals, retention and repeat purchases. Adding in the 15% who see engagement in terms of impact on revenue, a full 78% of marketers see it as occurring in the middle or later stages of the classic funnel. 22% view engagement in terms of love for a brand; important, but part of marketing’s legacy skill set.

Everything from the cost of customer acquisition (CPA) to the viral coefficients (K) needed for viral growth hacks to the lifetime value of a customer is dependent on the engaged customer.  A product or business without engaged users or customers is missing a big part of Growth Hacker marketing.

• 39% of marketers want new blood in the two areas of digital engagement and marketing operations and technology. A close third, and not significantly different, 38% want skills in the area of strategy and planning.

A simple response to this would be to find and hire more committed Growth Hack marketers.  Seems pretty clear to me.  Maybe the bigger message from this is that marketing executives are realizing, by seeing the success stories all around them of massively successful product launches, that there is a better but still elusive way of doing things.  Maybe we need to begin an organization like Big Brothers where we match a Growth Hack marketer with a marketing executive so the Hacker can mentor the Executive and to show them a better way in a safe and understanding environment.