Strategies for measuring the impact of growth hacking efforts

Hey, there, fellow growth hacker!

If you're anything like me, you love nothing more than a good growth hack. But let's face it, all the growth in the world means nothing if you can't measure its impact. That's why I’ve put together this newsletter all about the metrics you can consider tracking as well as what you can go about doing to improve them.

First things first, let's talk about the key performance indicators (KPIs) you should be tracking.

There's a whole world of metrics out there, but we've found these five are where you can start when it comes to measuring the impact of your growth hacking efforts:

Cost per Acquisition or CPA:? This one is a no-brainer. It tells you how much you're spending to acquire each customer. If your CPA is higher than your customer's lifetime value, well, that's a problem.

The churn rate measures how many customers are leaving your product or service over a given period of time. A high churn rate means you're losing customers faster than you're acquiring them, which is not ideal.

Daily Active Users or DAU tells you how many people are using your product or service on a daily basis. It's a great way to measure engagement and give you an idea of how well your growth strategies are working.

Lead Velocity Rate or LVR measures the rate at which your leads are turning into customers. If your LVR is slow, it could be a sign that your growth tactics aren't working as well as they could be.

Lifetime Value or? LTV measures the total value a customer will bring to your business over their lifetime. If your LTV is low, it could be a sign that your growth hacks aren't attracting the right customers.

Now, if? you’re thinking, "But wait, that's a lot of metrics to track!" You’re in for a surprise:

There are so many more. You’ve got metrics like Customer Involvement Score, Renewal Rate, Quick ratio, and many more. That's why it's important to focus on the KPIs that are most relevant to your business and goals.

But here's the thing: tracking your KPIs is only half the battle. Just collecting the changes over time isn’t the only important thing when it comes to figuring out how your business is performing.

You also need to make sure you're tracking them regularly and using that data to make informed decisions about your growth hacking strategy. Consistency is key!

Now, you might be wondering “Matt, what do I do to fix my LTV, LVR and the rest? How do I get an idea of what to do? There’s just too much to be considering here.”

I agree. There are too many variables that affect too many metrics and it’s near-impossible to achieve perfection for everything. However, I will give you a general idea of what you can consider improving for each to get you started.

To improve your CPA, consider optimizing your ad campaigns, improving your landing pages, and targeting a more specific audience.

To reduce your churn rate, consider improving the customer experience, offering more value, and addressing customer complaints quickly.

To increase your DAU, consider creating engaging content, offering rewards for usage, and encouraging word of mouth.

To improve your lead velocity rate, consider streamlining your lead generation process, improving the quality of your leads, and reducing the time it takes to convert a lead into a customer.

Lastly, to increase your LTV, consider offering upsells, improving the customer experience, and reducing churn rate.

Each of these are detailed in themselves. For example, when it comes to optimizing your ad campaign, you could consider reviewing your targeting, A/B testing your creatives and even experiment across different platforms to see which yields the best results.

Ultimately, instead of being overwhelmed by all of this, start picking which ones you think can be done at the lowest cost and yield the highest result.

This could be changing up your website home page, focusing on customer experience improvement and offering more value and upsells. From here, you can then keep on exploring and changing things based on their performance.

All in all, measuring your growth hacking efforts is important, but it's only half the battle. Improving your KPIs will require strategy, experimentation, and a customer-focused approach.?

And last but not least, don't forget the human factor. While metrics and data are important, it's also important to get feedback from your customers and prospects. Ask for their opinions on your product or service, what they like, and what they don't like.

This qualitative feedback can provide valuable insights into the effectiveness of your branding efforts. So don't be afraid to ask for it!

Just be prepared for some potentially tough love, because let's face it, customers aren't always going to say nice things. But hey, it's better to know what they're thinking than to be left in the dark, right?

When it comes to measuring the impact of your growth hacking efforts, there are a number of key performance indicators (KPIs) that you should be tracking. These KPIs will help you determine whether your efforts are paying off and where you may need to make adjustments to your strategy.

If you’re still feeling overwhelmed, let me know how I can help. I’d be more than happy to help you figure out where to get started.

Otherwise, you’ve got everything you need to get started.

Go for it!

Keep building,