All companies seek to grow and increase their economic benefits, so they apply methodologies such as growth hacking. Growth hacking consists of carrying out small experiments to validate or reject hypotheses. This avoids spending a significant amount of resources on projects without knowing what results will be obtained.
To apply growth hacking in a mechanical engineering company it will be necessary to find out which are the key metrics of the business, i.e. those most related to its economic growth. Examples for the mechanical engineering industry would be: Number of projects contracted annually, average project price, number of contracts as a supplier, parts sold annually, production costs.
In order for our business to thrive we will need these metrics to increase or decrease. It is not enough to seek to increase the number of projects contracted, we must formulate SMART objectives (specific, measurable, achievable, relevant and time-bound). Increasing the number of projects contracted by 17% in one year would be an example of a SMART objective.
Once we have set a series of SMART objectives, the next step is to devise growth drivers, hypothetical ways of achieving our objectives. We will measure their effectiveness through experiments.
In the mechanical engineering sector, examples of drivers would be: advertising to companies, attendance at trade fairs, collaboration with public bodies, references from past clients...
Engineering is a fairly traditional sector in which face-to-face dealings are highly valued. A client is more likely to choose a company because it has been recommended by a friend than for any other reason. It is a sector in which most companies know each other, so a good image is essential. On the other hand, this means that many companies devote very few resources to their online image and do not spend on online advertising.
Do we manage to attract customers with online advertising?
Is it a good untapped market or is it a waste of money?
- How do we improve the company´s image to maximize the chances of referrals?
- What is more important, product quality, fast order delivery, customer service?
- Do we solve customer problems quickly?
Answering questions like these by experimenting will allow us to learn what works and what does not. It is essential to record the lessons learned to discover what works and what doesn´t in order to progressively develop better growth strategies.
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