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Growth hacking
Growth hacking as an approach to amongst UK
producing growth amongst UK technology
start-ups
technology start-ups: an evaluation
Tony Conway and Tanya Hemphill 163
Department of Marketing, Retail and Tourism,
Received 5 December 2018
Manchester Metropolitan University, Manchester, UK Revised 2 August 2019
Accepted 2 August 2019

Abstract
Purpose – “Growth hacking” is a “data-informed” marketing approach that uses digital marketing tools
and tactics as well as traditional marketing channels to help technology companies show “proof-of-concept”
and sustainability before gaining funding. The purpose of this study was to identify and understand the
relevance and importance of growth hacking and identify what growth hacking tools and techniques are used
by such organisations.
Design/methodology/approach – The main research method for the collection of primary data was in-
depth interviews with both industry experts (senior professionals working for growth hacking agencies) and
individual growth hacking practitioners who work for technology start-ups based in the UK. Interviews
included the use of dimension cards with key growth hacking terms to act as visual cues to facilitate focus and
prompt reflection.
Findings – In addition to a data analysis element, growth hacking also requires people to spot emerging
opportunities before anyone else does. This makes it very difficult to find people with the right skill-set. It is
also important to use traditional marketing methods to bridge the gap between the physical and digital world.
Originality/value – This study shows that growth hacking is a mind-set and process that can help
technology start-ups grow quickly with a limited marketing budget. The research offers guidelines and
frameworks for start-ups to understand the growth hacking process. The concept has direct synergy with
agile marketing and this might be a term/ methodology with which people in the UK may feel more
comfortable given the negative connotations of the word “hacking”.
Keywords Small firms, Entrepreneurial marketing, Technology led strategy, Agile marketing,
Growth hacking, Technology start-ups
Paper type Research paper

1. Introduction
Although investment firms believe that the UK is a hub for emerging high-growth digital
companies (Gale, 2014), the environment is becoming noisier (Deloitte and UK Business
Angels Association, 2013), and therefore, such companies need to prove market growth and
sustainability to get noticed. This comes at a stage when technological change is
exponential (Kurzweil, 2001). It took the oil tycoon John D. Rockefeller 46 years to make a
billion dollars, compared to the 4 years for the founders of Yahoo, 3 years for the founder of
eBay and just 2 years for the founder of Groupon (Snow, 2014). Start-ups are particularly
under extreme resource constraints and need to break through the noise to let their target
customers know they have a superior solution for a critical problem. A start-up can be
considered to be a temporary organisation, which is seeking a successful business approach Journal of Research in Marketing
and Entrepreneurship
(Blank, 2013) and a key characteristic of a start-up is the pursuit of growth. After all, new Vol. 21 No. 2, 2019
pp. 163-179
firms exist to transform entrepreneurial judgement into profit (Spender, 2014), and through © Emerald Publishing Limited
1471-5201
the start-up phase, new ideas are brought to the market and transformed into economically DOI 10.1108/JRME-12-2018-0065
JRME sustainable enterprises. Start-ups represent a powerful engine of innovation and thus play a
21,2 key role in innovation processes (Davila et al., 2003; Spender et al., 2017). Although they
suffer a lack of tangible and intangible resources, adopting innovation practices is necessary
for start-ups to overcome both liability of newness and being small (Bogers, 2011). These
technology-based firms are the most common introducers of disruptive technologies and a
leading driver of creative destruction (Spencer and Kirchhoff, 2006). Creative destruction is
164 “a process that incessantly revolutionises the economic structure from within, destroying
the old one and incessantly creating a new one” (Schumpeter, 1942, p. 83). Such firms are
unlikely to have an existing customer base to which they need to cater, so they are able to
approach problems without any “baggage”. Similarly, they are not committed to high
investment in old technologies, are not constrained by organisational inertia and are more
likely to be idea driven. A total of 87 per cent of large businesses stop growing (Olson and
Bever, 2009) whilst companies that “pivot”, i.e. switch business models or products while on
an upward trend, tend to perform much better than those that stay on a single course (Snow,
2014). This “lean start-up” tactic seems to be successful in that start-ups that pivot once or
twice raise 2.5 times more money, have 3.6 times better user growth and are 52 per cent less
likely to scale prematurely (Start-up Genome Report, 2011). Also, being at the beginning of
the application of a particular technology there is little need to worry about such an
application running out of steam.
Networks affect start-up innovativeness, job growth and ability to attract funding
(Lundberg, 2013). Research studies also indicate that forming relationships with external
partners is a priority for the success of start-ups (Teece, 2010; Pangarkar and Wu, 2012;
Kask and Linton, 2013). In a similar vein, Neyens et al. (2010) found that continuous long-
term alliances with customers, suppliers and competitors have a positive effect on ability to
generate radical innovation. Intermediary organisations such as technological service firms,
accounting and finance firms, law firms and talent search firms are equally important.
Having relations with this type of organisation is positively related to new venture product
innovation (Zhang and Li, 2010), although Wang and Fang (2012) found that network
strength affects new firm’s innovativeness.
Clearly, entrepreneurial skills are important in a start-up’s innovation processes. Stiglitz
and Driffill (2000) defined “entrepreneur” as the person who creates new businesses, brings
new products to market or develops new processes of production and within the present
context, this would include activities such as identification of opportunities, mobilisation of
resources and the creation of an organisation. Spender et al. (2017) found that
entrepreneurial experience positively influences the entrepreneur (Hayter, 2013) and that
entrepreneurial activity is enabled in the network around the entrepreneur.
The role of customer can be important in the innovation process for start-ups in terms of
being a source of technological know-how (Von Hippel, 1986, 1988 and Hamel and Prahalad,
1991). Blank (2013) identifies two phases of start-up development: search and execution. The
former comprises customer discovery and customer validation (with the possibility of
“pivoting” if there seems to be little initial customer interest) and the latter comprising
customer creation and company building. Strategic and tactical activities may help a
company’s chance of survival, and this is likely to be closely tied to scalable growth (Coad
et al., 2013). When looking at particular types of customer, Moore (2014) argues there is a
“chasm” between the early adopters (Rogers, 1962) of the product (considered as “lead users”
by Von Hippel, 1986) and the early majority and believes these two groups have very
different expectations. He explored these differences, and suggests techniques to
successfully cross the “chasm”. According to Moore, if a successful firm can create a
bandwagon effect in which enough momentum builds, then the product becomes a de facto
standard. Similarly, Hamel and Prahalad (1991) identify the application of “expeditionary Growth hacking
marketing”: low-cost, fast-paced market incursions designed to bring the target quickly into amongst UK
view. It is in this context that growth hacking has emerged (Crawford-Brown, 2013). Growth
technology
hacking takes advantage of the connected world where digital experiences can spread
rapidly (Ellis, 2014a). Some see a close link between marketing and technology (Deeb, 2014a; start-ups
Chen, 2011) and use the term “growth hacking” in this context.
165
2. Technology start-ups and the new market environment
2.1 Lean/agile marketing
Based on Lindblom’s (1964) “science of muddling through”, a set of adaptive management
techniques that are collectively known as “lean/agile” methodologies are now being
implemented. Instead of comprehensive analysis of every policy option, there is
“incrementalism” or a “muddling through” of behaviour on the part of decision makers. For
Freeling (2011), “agile marketing” consists of number of key features: being immersed in
customer experience, understanding the fitness landscape and developing rules of thumb in
this landscape. In addition, extensively using pilots and prototypes and conducting
experiments using new technologies are core to this approach as are questioning using both
qualitative and quantitative techniques. This type of marketing requires defining and
communicating the intent of new offers clearly via briefing and back briefing ensuring that
individuals in marketing and other functions are free to adjust their actions in line with this
intent. This agile marketing approach is particularly relevant for technology start-ups
because they do not have the resources to invest a lot of time and money into a big idea that
might not work. Instead, this methodology is based on implementing smaller iterative
projects quickly and cheaply then making decisions based on testing and data, rather than
opinions and experiences (Moth, 2014). According to Hopkins (2014), one of the strategies for
agile marketing is a move towards “strategic pivoting”, which links to the concept of the
lean start-up noted above.
According to Kaykas-Wolff et al. (2014), “agile era” businesses need to present something
to the world, test it using digital methods and then move on based on what they have
learned from such an assessment. One of the most used agile methods is Scrum, which has
come from a product development setting. The traditional approach to the product
development process is like a relay race – one group of specialists passing the baton to the
next group. However, to excel in a competitive market speed and flexibility is needed. This
is where a holistic or “rugby” approach is needed (i.e. scrum) – the team works together as a
unit from start to finish, passing the ball backwards and forwards (Takeuchi and Nonaka,
1986). Several companies around the world have very successfully adopted scrum into their
marketing systems (Izvercianu and Buciuman, 2012).
The explosive growth of marketing technology has meant that rather than spending
several months planning a marketing campaign in great detail, marketers can try out initial
ideas and use the outcomes to refine a campaign using “test, learn and commit” loops (a
process that has emerged from the software development industry). This argument is
backed up by Forrester research study (Ramos, 2013), who found that the traditional annual
planning route is now out-dated as marketing leaders say that conditions change too quickly
to keep plans current and up to date. Growth hacking is another approach that emphasises
the speed at which planning needs to take place.

2.2 Growth hacking

Although there seems to be no universal definition of growth hacking, its commonly agreed
function intersects product development and marketing, and is focused on customer and
JRME user acquisition, activation, retention and upsell (Bussgang and Benbarak, 2016; Deeb,
21,2 2014a). Growth hacking brings marketing and technology together. As well as the
discursive, less technical aspects of marketing, there is also the need for the application of
code and data (Brinker, 2015). A growth hacker uses emails, pay-per-click ads, platforms
and platform application programming interfaces to build testable, trackable and scalable
strategies (Holiday, 2013) with the main aim being for marketing to reach millions by itself
166 (Holiday, 2013; Patel and Taylor, 2016). Growth hacking is important to start-ups as they are
usually lacking budgets for marketing and traditional marketing experiences (Holiday,
2013). Growth hacking aims for rapid business growth using very small budgets, by
utilizing the advantage of the network of internet and data-rich properties (Vasquez, 2014).
There has been a growth of hybrid marketing professionals, also known as “marketing
technologists” (Lungaard, 2013). Modern marketers have to be Pi-shaped (P), to fit into the
skill-set needed to be a growth hacker (Mortimer, 2012). They need to be analytical but also
understand qualitative marketing. However, in spite of understanding the level of
importance of technology, keeping up to date with digital technology is one of the greatest
challenges marketers face (Hays, 2014). Marketers’ lack of digital skills is potentially a big
issue in today’s technological environment because one of the consequences of digital
innovation has been an explosion of digital channels or “new media” (Brinker, 2015). In the
past, different types of media were placed into silos; however, in today’s digital landscape
they are converging and brands need to consider integrating paid, owned and earned
channels to make marketing more effective (Lieb, 2012). In spite of the exponential growth of
new media channels, more traditional marketing channels are still very important.
Weinberg and Mares (2014) found that too many start-ups focus on the same channels but
instead of making educated guesses, they believe they should run cheap tests on validated
assumptions to provide research data on what actually works best. They have identified
many “traction” channels to help grow a business, and these are a mix of offline and online
marketing methods. Deciding what traction channels to initially test will depend on what a
start-up is trying to achieve and in what area growth will have the largest impact. McClure
(2007) recommends reviewing five key metrics from a “customer lifecycle” to help
successfully grow a business. These are called “pirate metrics” because the acronym is
AARRR (although Croll and Yoskovitz (2013) note that these five elements do not
necessarily follow a strict order):
(1) Acquisition: users come to the site from various channels;
(2) Activation: user enjoys first visit – “happy” user experience;
(3) Retention: users come back, visit the site multiple times;
(4) Referral: users like the product enough to refer others; and
(5) Revenue: uses conduct some monetization behaviour.

A thematic analysis (Braun and Clarke, 2006) of the presentations from 17 speakers at a
Growth Hacking Conference (2014) clearly highlights the following key elements of a growth
hacking campaign: product/market fit, user data analysis, conversion rate optimisation
(CRO), viral growth and retention/scalable growth.
2.2.1 Product/marketing fit. This is an important part of the “search” phase of Blank’s
model (2013). A minimum viable product (MVP) should be presented to customers as early
as possible with feedback sought via surveys and tests (Ries, 2011; Holiday, 2013) to ensure
that a big enough segment considers the product/service to be a “must have”. Technology
start-up investors require “proof-of-concept” before releasing funding (Preger, 2016), so that
key marketing metrics can be provided to prove sustainability. However, the caveat to this
discussion is that Gans et al. (2000) believe that there are many nuances to product Growth hacking
development and venture-based start-ups and suggest that many innovation-oriented start- amongst UK
up firms serve as upstream suppliers of technology to established firms rather than technology
potential sources of disruption to current market structure. This idea is supported by Theil
(2014), who claims that the perfect target market for a start-up is a small target audience
start-ups
served by few or no competitors. He believes that trying to enter any large market is a bad
choice for technology start-ups and a large market already served by competing companies 167
will erode profits.
2.2.2 User data analysis. One of the key challenges faced by start-ups is that there is so
much data available it is becoming increasingly difficult to understand how the data can be
used to create actionable insights (Mucklow, 2014). User data analysis should be a mix of
quantitative and qualitative information. This comprises five main areas: technology
analysis, (e.g. conversation rate per browser); heuristic analysis, (e.g. relevancy, online value
proposition); web analytics (e.g. flow reports, qualitative surveys); usability testing. This
analysis can then be used to test hypotheses’ relating to user growth.
Cohort analysis is one of the most important tools of start-up analytics (Ries, 2011). This
is based on the premise that instead of looking at cumulative totals or gross numbers, data is
broken down into the performance of each group of customers (a cohort) that comes into
contact with the product independently (Skok, 2013). This method helps start-ups
understand customer flows, which provides more predictive power than traditional gross
metrics.
One of the main challenges facing a start-up during the launch stage, however, is having
enough customers to provide meaningful data (Chen, 2013). This is why product/market fit
is so important, so that the product initially “sells itself”.
2.2.3 Conversion rate optimisation. Data can then be used for CRO to help build an
effective growth engine. Ellis (2013) explains this process in his “CRO loop” which involves
understanding visitors, prioritising planning in response to this, then testing and analysing
which link back to an understanding of visitors. Companies that achieve higher increases in
sales seem to be taking a more “strategic” approach to CRO and are running a higher
number of tests, using a structured approach with a wider variety of methods (Econsultancy
in association with RedEye, 2014).
2.2.4 Viral growth. To achieve high growth quickly, marketers are turning to alternative
strategies, such as viral marketing. Viral marketing involves product information diffusion
and its network adoption (Leskovec et al., 2007). The growth of social media has
dramatically changed the Web’s collaboration structure and therefore social influence
diffusion is a key aspect of viral marketing (Zhu and Huberman, 2014). Growth hackers are
particularly focused on identifying “influential” users in a social network and finding key
metrics that drive growth but viral growth can also be obtained by early adopters’ using
traditional advertising and PR coverage (Goel et al., 2012; Klein,2014 and Brown, 2014).
Vohora (2012) recommends using a hybrid model, which uses viral and non-viral channels to
achieve strong and sustainable growth. Croll and Yoskovitz (2013) believe that there are
three types of virality:
(1) Inherent virality, which is built into the product and happens as a function of its
use.
(2) Artificial virality, which is forced and often built into a reward system.
(3) Word-of-month virality, which is when conversations are generated by satisfied
users (independent of a product or service).
JRME 2.2.5 Retention/scalable growth. Growth can be more about retention than acquisition
21,2 (Reicheld and Schefter, 2000). Growth hackers understand the value of loyalty and customer
retention, so it is embedded in their business strategy (Quint, 2014). Customer advocacy is
measured for lifetime value modelling via net promoter score. This is linked to viral
coefficient measurements because customers are asked “will you recommend us?” and are
then segmented into detractors, passives and promoters.
168
2.3 Conclusion
The above provides an insight to the key elements of growth hacking for the UK
technology start-ups and indicates some of the barriers to implementation. This
perspective is from a broad, business-management overview but provides the researcher
with a general framework to further investigate the topic with primary research.
Therefore, the following conceptual framework was used to provide guidance for the in-
depth study into the use of growth hacking and help define what components a campaign
is most likely to consist of.
This framework has been developed by merging the characteristics of a start-up
(Blank, 2013) with the lean start-up model developed by Ries (2011) to form the outside
“search phase” and “execution phase”. The middle “growth hacking” section reflects
the growth hacking model produced by Ellis (2013) and has been depicted in a circular
shape to convey the fact it is a continuous process. The middle loop of “analytical tools
used throughout the process” are elements taken from the measurement metrics/tools
mentioned within the growth hacking process of: user data analysis, CRO, viral growth
and retention.

3. The research project

3.1 Purpose/approach
The research aimed to understand the relevance and importance of growth hacking within a
technology start-up business and to identify what growth hacking tools and techniques are
used by the UK technology start-ups to build rapid user growth. An inductive research
approach was selected, beginning with a substantive literature review, which in turn
informed the empirical study. The literature review aimed to draw together themes and
conceptual frameworks enabling the development of an indicative model. This model
(Figure 1) was then evaluated in terms of it being a true reflection of what is happening and
adapt it, if necessary, following a deeper understanding of the topic via empirical data.
Applying a critical realism philosophical position aimed at understanding the reasons and
ways technology start-ups are using growth hacking (Saunders et al., 2012), this empirical
data may then be used as a precursor for recommending best practice. The purpose of the
study was to find out individuals’ perceptions of growth hacking (to explain events), as well
as describe the use of growth hacking within their organisation and the outcomes it has
achieved. The research question therefore was focussed on how technology start-ups were
using growth hacking to generate online growth quickly. A qualitative approach has been
taken because the research topic places an importance on context (i.e. the UK technology
start-ups); therefore, a high level of descriptive detail is needed to help understand the social
behaviour of growth hacking within this specific environment (Bryman and Bell, 2011).
Also, because the term “growth hacking” was first devised in 2010, it is important to make
sure the phenomena is clearly understood/defined by all respondents from the onset, to help
overcome data analysis limitations. Although participants selected for qualitative studies
are not meant to be representative of an entire population (Bryman and Bell, 2011), this has
been taken into consideration when the research strategy was devised and when analysing
 Search Phase
Growth hacking
Start-up search 2. Proof-of-Concept Find a business
for a viable
1. Product /Market Fit
Create a ‘Minimum Viable
Test MVP & measure model with hyper- amongst UK
potenal growth. Use growth potenal
business model
(Usually Self-
Product’ (MVP) to test
business model hypotheses
metrics to decide whether (Seed Funding: High technology
to ‘pivot’ or ‘persevere’ Risk/ High Return)
funded) Qualitave
Surveys
start-ups
Analycal tools used Technological Cohort
throughout the process Analysis Understand
Un Analysis
Users
Web
Analycs Growth
Heurisc
Analysis
169
Connuous
Hacking
Ha g
opmisaon Test & Priorise
Net Ana
Analyse Planning Viral
Promoter coefficient
Score (NPS) Analysis
A/B Usability
Business Tesng Tesng Business model
4. Scalability: Build Loyalty 3. Sustainable Growth
transions from found for hyper
& Customer Retenon Business Model
Start-up mode to growth
Nurture ‘Promoters’ & Brand build & amplify
sustainable (Investment funding:
growth listen to ‘Detractors’ to markeng messages with
Lower Risk/ Lower
Figure 1.
a hybrid channel approach
(Potenal to IPO: reduce churn. Constantly
opmise to shorten sales Execuon Phase for user acquision (gain a Returns) Proposed growth
High Returns)
funnel viral coefficient >1) hacking framework

the data. It is recognised that there are some limitations to a qualitative methodology but as
the topic has been relatively academically unexplored, the research will have value in
engendering further debate or lead to further lines of enquiry (Biggam, 2011). The research
objectives were:
 to attempt to understand the relevance and importance of growth hacking within a
technology start-up environment;
 To identify what growth hacking tools and techniques are used by UK technology
start-ups to build rapid user growth quickly; and
 following the outcome of research findings, to formulate recommendations
regarding the use of growth hacking by the UK technology start-ups to help achieve
high online growth within a short time-frame.

3.2 Research method

The main research method for the collection of primary data was in-depth interviews with
both industry experts (senior professionals working for growth hacking agencies) and
individual growth hacking practitioners who work for technology start-ups based in the UK.
By using depth interviews, an understanding of the respondents’ world, their beliefs and
opinions surrounding the concept of growth hacking and its application could be developed.
It was hoped that themes and issues that might have a broader relevance and application
could be identified.
Interviews were particularly useful in the context of this research project because they
helped provide an insight into people’s behaviour and experiences (Myers, 2009) and provide
rich insight from key industry experts who can provide privileged information (Denscombe,
2007). Because of the nature of the topic and the fact that it is a relatively new phenomenon,
semi-structured interviews were used to help make sure important themes were covered but
the process was kept open for the participant to answer in their own way (Fisher, 2010). This
flexibility allowed for a modification of questions and helped lead to new theories (Bryman
and Bell, 2011).
JRME Key themes within the semi-structured interview included:
21,2  definition of “growth hacking”;
 its relevance and importance for a technology start-up company;
 key elements of a growth hacking campaign;
 limitations and challenges of a growth hacking campaign; and

170  outcomes from implementing a campaign.

Two of the questions included the use of dimension cards with key growth hacking terms
(based on secondary research) to act as visual cues to facilitate focus and prompt reflection.
The cards had the following terms written on them:
 product/market fit (MVP);
 pivot or persevere;
 CRO;
 user data analysis (quantitative and qualitative);
 test and analyse;
 viral growth; and
 customer retention.

During the interview, the following process was implemented when using the cards
(adapted from Rowley et al., 2012):
 The interviewee was asked to describe what each dimension term meant to them,
from a growth hacking perspective. The cards were in a randomised order and the
terms related to the conceptual framework devised from the literature review. This
approach allowed the researcher to test the conceptual framework and gain deeper
insights into how growth hacking is implemented in tech start-ups.
 Interviewee feedback on the suitability of the dimensions. The researcher provided the
interviewee with a pen and post-it note to add any dimensions that they felt were
missing; they were also asked to verbally explain the reason(s) why. This was
designed to test the reliability of the framework by “member testing”.
 Prioritisation of the dimensions. The interviewees were asked to prioritise the cards
in terms of importance for tech start-ups in the context of growth hacking. This
helped determine the strategic importance of the different elements of the cards, so
that the conceptual framework could be adapted to reflect practitioner insights.
 Mining the data. Transcripts from the interviews and additional written notes were
coded and prioritise to help develop a revised growth hacking framework.
 Revising the first conceptual framework. The findings from the “game card method”
and the rest of the semi-structured interviews were compared and analysed against
the literature review and initial conceptual framework, to help develop a more
accurate reflection of how growth hacking is actually practiced.

The semi-structured interviews took place face-to-face (whenever possible, if not, Skype
calls were used), within the participants’ chosen environment.
As “growth hacking” is a new concept there are a limited number of people who seem to
be practicing the discipline (as seen from the literature review). Because of the nature of the
research study, sample participants were within the following homogenous group: have a
job as a growth hacker and/or be involved in growth hacking for the UK technology start- Growth hacking
up. A sample of 11 interviews was achieved with the average interview length being 41 min. amongst UK
Practitioners from growth hacking agencies based in the UK were sought via specific
technology
searches for the UK “growth hackers” via two professional social networks – LinkedIn and
Twitter. This approach also provided the opportunity for undertaking “background checks” start-ups
on potential participants as thought leaders in this very specific area of digital marketing.
After completing data collection, professionally transcribed documents from the audio
recordings and written notes from the interviews were analysed via a coding method. This 171
followed a thematic analysis developed by Braun and Clarke (2006). The process of coding the
data did not try to fit it into a pre-existing coding frame. The conceptual framework produced
to summarise secondary research findings, was then revisited and adapted after primary
research analysis. Braun and Clarke’s (2006) six-phase approach to analyse the data was used.

4. Key findings and discussion

4.1 Growth hacking’s relevance and importance for the UK technology start-ups
There was clearly some confusion regarding the understanding of the term “growth
hacking” and definition was very much influenced by the original background of the growth
hacker i.e. if marketer or developer. For example, one of the marketers commented:
[. . .] for us, it kind of means different things like cutting to the chase, doing things quite quickly,
being quite creative and creative use of technology and data.
Whilst one of the developers noted:
Because growth, which is marketing, mixed with hacking, which is software development. The
thing that everyone has realised is that data science is the crucial thing to mix the two together.
The role should also include technologist, coder/developer and data analyst in addition to
marketer. This reinforces the view that marketing has become a technology-powered
discipline (Brinker, 2015).
It would seem that start-ups, who understand and appreciate marketing at an early stage,
have a better chance of succeeding and most interviewees believe that a key aspect of growth
hacking for accelerated growth is about applying marketing differently and using new/
emerging communication channels. The only way to stand out and gain traction is to position a
product away from the crowd and leverage new channels and other peoples’ audiences.
One respondent believed that one of the reasons why growth hacking is so important for
the UK technology start-ups is because British venture capitalists are more cautious than
those in America and want to see a clear revenue stream before they invest i.e. “proof-of-
concept” (Deeb, 2014b). The growth hacker mind-set of implementing small projects quickly
and cheaply to test ideas and then making decisions based on testing and data (Moth, 2014),
is therefore ideally suited to the UK technology start-ups.

4.2 Key elements of growth hacking

It would seem that growth hacking and agile marketing are very much aligned, indeed, it
was possible to link the research findings to key features of agile marketing. The research
findings indicate that all previously noted agile marketing elements are equally important in
growth hacking. More specifically, the following elements identified by the literature were
also assessed in the research.
4.2.1 Product market fit and pivot or persevere. Although the literature portrayed
product market fit (PMF) as a part of growth hacking, many respondents felt this element
had a more strategic role within the overall business and that growth hacking occurs after a
JRME start-up has achieved PMF. Participant 3 felt that “People who try to scale their marketing
21,2 before product market fit, waste money”. Ultimately, “If there’s no demand for the product,
it’s very unlikely to succeed”. (Participant 7). This view reflects that of Thiel (2014) and Ellis
(2014b), who believe that if a product needs a “hard push” to sell it, it is not good enough.
The lean start-up concept of building a MVP and testing it to gain user feedback for
product improvements (Ries’, 2011; Blank, 2013) resonated with most of the interviewees.
172 Building things is quite expensive, so rather than launching a “perfect” product, test the concept
and refine it from user feedback

4.2.2 Test and analyse and conversion rate optimisation. All of the participants put “test
and analyse” and “CRO” together as a core part of growth hacking:
“Data-informed marketing, doesn’t just put the whole budget behind a campaign because
of gut feel.” (Participant 9).
This philosophy is reflected by Weinberg and Mares (2014), who believe that start-ups
should run cheap tests on validated assumptions to see what actually works best. This
experiment-driven marketing approach is very much aligned with agile marketing and its
“test, learn and commit” loops (Freeling, 2011; Moth, 2014).
The main difference between respondents’ feedback of “analyse and test” and “CRO” is
that the latter was more focused on strategy and mind-set and the former had a more tactical
standpoint:
“Analysing ‘emotion’ is important – trying to work out why people do things and taking
people on emotional journeys to the point of conversion”.
“It involves analysing results and looking at key indicators”.
4.2.3 User data analysis. All of the interviewees expressed the importance of both
quantitative and qualitative types of information. The general consensus was that
quantitate data is useful to describe what is happening on a website or mobile app. but
qualitative information will help explain why things happen. Although it is widely
recognised that both types of data analysis is important, some respondents noted that
gathering qualitative data does not always happen and often gets ignored by start-up
companies. This may be because technology start-ups may not have the skill-set to conduct
this type of analysis or might not know that it is something they can do.
All of the participants mentioned a range of tools to help start-ups and gather
information for user data analysis (these are also used for CRO and testing and analysing).
These include: Google Analytics, Mixpanel, Kissmetrics and Optimizely.
4.2.4 Viral growth. Interviewees had mixed views on viral growth and most focused on
one of the three types of virality described by Croll and Yoskovitz (2013). Most growth
hackers mentioned that the product had to be right (i.e. it has PMF) before viral growth
happens. Even then, most participants agreed that achieving virality is very difficult:
“Products that go nuclear because they have an element of virality built into them is
because it’s intrinsic, not because someone’s found a way of tagging virality into it”.
However, there was also an understanding that “artificial virality” can be used to
generate growth. For example, features can be added for users to collaborate on whatever
they are doing or there can be a referral programme and users can be offered a free month if
they get someone else signed up to the product, so that both parties benefit.
However, “[. . .] people think they are going to have a viral business. However, you can’t
build a viral business; you have to build a business that goes viral”.
Five Participants mentioned that the key measurement for viral growth is to achieve a
viral coefficient (or K-Factor) of more than one (Patel, 2011 and Ellis, 2012). However, some
noted that trying to use the K-Factor “formula” is extremely difficult because it is so hard to Growth hacking
get any raw data on viral growth. amongst UK
4.2.5 Customer retention. Primary research indicates that all of the growth hackers technology
interviewed believed that customer retention was extremely important:
start-ups
Retention is the most important metric in any business. Having 100,000 people sign up but none of
them being retained is useless. Having ten people sign up but all of them being retained is better [. . .] I
think everything should be centred on how you retain a customer. And actually, the reason that a 173
customer buys your product in the first place is all about how you retain them in the long-run.
A number of respondents echoed Reichheld and Schefter’s (2000) claim that it is less
expensive to bring back an existing customer than to acquire a new one.
In spite of the perceived importance of customer retention, a few interviewees admitted
that the industry is not focusing enough on it. One participant believes that this is because
technology start-ups do not have the ability to manage customer retention and even large
organisations are struggling with it.
All of the growth hackers mentioned metrics and tools to measure customer retention
with measuring the churn rate being the most important metric discussed.

4.3 Effective offline channels for growth hacking

In spite of growth hacking being perceived as a “digital” form of marketing (Econsultancy,
2014), this research supports the view that more traditional forms of marketing are just as
important for growth hackers.
[. . .] the best marketers don’t think online and offline. They think, ‘who am I talking to? What am
I trying to achieve and what are the best ways in different media and in different environments to
achieve my objectives?
The number of more traditional marketing channels use by growth hackers to gain traction
supports the view that a number of different marketing channels should be considered and
tested to help achieve growth (Weinberg and Mares, 2014).

4.4 Limitations and challenges of implementing growth hacking for the UK technology
Start-Ups
In addition to a lack of people having the relevant skills, there are other potential barriers.
Growth hacking is expensive in terms of time and most technology start-ups want to jump
in feet first. Most say what they do and leave it to the users to interpret what it means for
them rather than leading with the benefits and many technology start-ups want to keep
every function in-house in spite of the lack of a “growth hacking” talent base.
The UK Technology start-ups would seem to be scared of failing but in America (where
growth hacking has come from), they are much more forward thinking and more accepting of
failure.

4.5 Revised growth hacking framework

The initial growth hacking framework resulting from a review of the literature (Figure 1)
was shown to participants for feedback. The main points raised were:
 remove PMF and proof-of-concept because they are not growth hacking – these
should be done before growth hacking starts;
 the framework is too “technical and analytical” – it is missing essential branding
elements/marketing channels;
JRME  technological tools need to be added;
21,2  there are areas of importance that are missing: growth mind-set, team, coding,
automation; and
 the middle iterative testing loop is a key part of growth hacking.

Bringing together all the primary research, a revised growth hacking framework has been
174 established (Figure 2).

5. Conclusions and recommendations

It would seem that growth hacking could only be undertaken with a good product that has
achieved a PMF and is most effective when it is implemented by a multi-disciplined team of
marketers, data analysts, coders/developers and people who use and understand
technology.
The core principle behind growth hacking is to quickly and cheaply test a marketing
idea, use data to analyse the outcomes, and to iterate, optimise, implement or change the
experiment. Running A/B tests and checking data with analytical software such as

Stage 1: Product Market Fit

‘Do enough people want it? Does it serve
a real need?’

Iterave Tesng Process

Stage 2: Growth Hacking Test & Understand

‘What can we do to achieve high growth Analyse users
quickly and cheaply?’ Hypothesis

Priorise Planning
Team Skills Needed
- Growth mind-set
- Creave & Curious
- Understanding of technology – how
to use it/ knowing about new Data Analysis Measurement
19 Tracon Channels*
technology to ulise
to Test xA/B & Mulvariate Metrics
- Data analyst
x Viral Markeng Tesng Pirate Metrics**
- Coder / developer
x Public relaons (PR) xWeb Analycs (AAARR):
- Marketer (online & offline)
x Unconvenonal PR xUsability Tesng
- Behavioural psychology x Acquision
x Search Engine xQualitave Surveys
Markeng (SEM) xCohort Analysis x Acvaon
x Social & Display Ads xHeurisc Analysis x Retenon
x Offline Ads xTechnological x Revenue
x Search Engine Analysis x Referral
Opmisaon (SEO) xViral Coefficient
x Content Markeng Analysis (K-Factor) 2 to 4 KPIs per
x Email Markeng xNet Promotor tracon channel
x Engineering as Score (NPS)
Markeng
x Target Market Blogs
x Business
Tools to Help Measure / Implement Experiment
Development
x Sales
x Google Analycs x Gekoboard
x Affiliate Programmes
x Mixpanel x Adjust
x Exisng Plaorms
Figure 2. x Kissmetrics x Qualaroo
x Trade Shows
Revised growth x Opmizely x SessionCam
x Offline Events
hacking framework
* Weinberg & Mares (2014) **McClure (2007)
Google Analytics, Mixpanel and Optimizely are essential components to this process. Growth hacking
However, in spite of the high data analysis element of growth hacking, it is an extremely amongst UK
creative process that requires people to “swim against the flow” and spot emerging technology
opportunities before anyone else does. This dichotomy of “art and science” makes it very
difficult to find people with the right skill-set, which is why building a growth hacking start-ups
team is so important.
Although digital marketing is a key element of growth hacking, it is also important
to use traditional marketing methods to bridge the gap between the physical and digital
175
world. To generate high growth, start-ups need to think creatively and use different
traction channels to everyone else (or use the channel in a more innovate way).
In conclusion, this research provides guidelines and frameworks for start-ups to
understand the growth hacking process and is an implementation enabler. It has shown
that growth hacking is a mind-set and process that can help technology start-ups grow
quickly with a limited marketing budget. However, it requires a particular skill-set of Pi-
shaped marketers that are not easy to find, which will limit the development of this
marketing approach in the UK. The concept has direct synergy with agile marketing and
this might be a term/methodology that people in the UK feel more comfortable with
because of the negative connotations associated with the word “hacking”. In spite of this
potential issue, the concept is still very new (it was devised in 2010) and if more studies
and media coverage are given to the topic, it has the potential to gain fast growth because
the ideas and principles behind it make good business sense. Perhaps this means that the
term itself needs a growth hack?

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start-ups

Corresponding author
Tony Conway can be contacted at: [email protected]
179

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