Growth Hacking is a methodology by which continuous growth and optimization of the business is sought through the minimum possible expenses.
It is important here to state strongly that the objective of growth hacking is not to increase sales, but to achieve maximum profitability of the business. With this, what they want to show is that the most profitable way to grow a business does not have to be by increasing sales; On the contrary, it may be much more functional to reduce the cost of production, or the investment in advertising, or establishing a partnership that allows us to increase a market.
In short, the Growth Hacker is someone who has a global understanding of how the business works and identifies those drivers that will achieve a higher profit margin at the lowest possible cost.
The luxury sector is one of the sectors that is changing the most in terms of its role in society since luxury no longer attracts the same public as before. Therefore, using the most effective techniques when growing and knowing what works best can benefit them a lot. Below we explain the steps to grow in this sector.
The first step is to set a growth goal. For this we must look at what is the most critical part of our funnel.
- Do we have recognition problems?
- Or is it more about activation?
- Do customers come back?
Once the most critical part of our funnel has been identified, we must establish a suitable growth objective, which must be specific, measurable, achievable, realistic and temporary.
An example would be: "We want to increase activation by 15% in the next 3 months and we will monitor it by means of the number of times they search for us on the internet + CPM, CPC, CPL and CPA".
Once the objective is established, we must think about the most effective driver to achieve it. Ultimately, the driver is those strategies that we will follow to achieve the proposed growth objective and, to design a good strategy, we must know our consumer well.
Today, for example, a problem that most luxury brands face is that they do not know how to connect with the younger audience.
- What is this audience looking for?
- Do you empathize with us?
- Does our brand share your values?
- Are we offering them a value proposition that interests them?
In order to grow, in a digitized era and where millennials and centennials are an ever greater part, luxury brands have a key driver in the sale of both physical and online experience.
Once we select the driver, we will go to the execution phase of experiments. The experiments are those tactics through which we will execute the strategy we have chosen and, as the name says, we will be doing continuous A / B testing to see what works and what does not, as well as what allows us to achieve the most optimal results.
- How can we sell experience?
- Would treating the consumer in a personal way work?
- Is the attention we offer them adequate?
- Do the people we hire to be in the store know and are they really passionate about this sector?
- Does the packaging reflect the same as the product?
- Is the experience when opening the packaging just as magnificent?
- Do we include a card?
- Is the attention to detail extreme?
- Is digital on-boarding also an experience?
- Do we show each and every one of the product´s attributes?
- Do our campaigns convey the same values?
- Are we also targeting exclusive media and channels?
Every experiment that we carry out must be monitored and analyzed.
Finally, we will arrive at the learning registration phase. In this phase we must record each action we take, the data extracted, its results and the lessons we have learned. Thus, without realizing it, we will be creating a database that in a short time will help us to begin to detect what works and what does not.
For more information on how to grow a business belonging to the luxury sector you can register in Hypertry. There you can check the trends of the sector and the drivers and experiments that are most effective.