Does growth hacking apply to the entertainment industry? Can the entertainment industry actually implement growth methodology and active experimentation framework?
Growth hacking is a relatively new focus in the marketing field, which focuses on achieving company growth. The goal of its extremely effective methodology is to quickly test ideas that can improve the customer experience before investing a lot of resources, copy and expand ideas that can work, and modify or abandon those that don’t work.
First, we start with metrics to measure growth of our entertainment corporation. The key metrics should always be the ones that best deliver growth to your entertainment business, like, number of new clients, churn rate and recurrence.
Once we know which metrics are the most important ones, it is time to set goals. Goals should be SMART, and these are specific, measurable, achievable, relevant and timely. Decreasing 10% the churn rate in the next two months could be a retention goal. Think of goals as a desired increment, or decrement, of your key metrics.
After we set up our goals, we ideate new or existing growth drivers. Growth drivers are hypothetical ways to achieve goals. Some examples for the entertainment industry could be
- Will we attract more customers if we offer a new spectacle?
- Should we instead focus on existing shows that have the most audience?
- Can we get more clients by advertising our show to different buyer personas?
In order to test these drivers we design experiments.
Experiments are set up to determine whether a growth driver will help the company grow. Imagine your company makes a teaser for a new show, in order to analyze if it gives you growth you should see if it gets your entertainment business more clients, a key metric.
Before doing something on a large scale, experiment with it. Decide if you achieve your goal and if so determine the most effective way to do it.
- Do advertisers for different buyer personas get us new clients?
- Do new shows get more views than old ones?
- What are the opportunity costs of both?
- How much time do we spend on both of them?
Independently of whether we can validate or reject the growth drivers, we must write down everything we have learned and keep it well documented. This part is crucial in order to keep track of which strategies work and which do not.
Want to know more about how to apply growth hacking to your entertainment business? Sign up for Hypertry and ask for a one to one session!