Growth hacking

Definition
Growth hacking is running many small, cheap experiments across a product and its channels to find which ones reliably move acquisition or revenue.

Why it matters

Standard channels get more expensive as every competitor piles into the same auctions. A company that finds a referral prompt or an onboarding change that converts twice as well wins on cost, not on spend. A team running ten small tests a month also learns what its market responds to far faster than one debating a single big campaign.

How to apply it

  • Pick low-risk tests that plug into tools already in use, so each costs hours, not weeks.
  • Write every test as a hypothesis with one metric attached before it goes live.
  • Run several a month and let the results decide what continues.
  • Watch product moments as closely as marketing pages. An onboarding tweak often beats an ad.
  • Record why each loser failed so it is not retried blind.

What it is

Growth hacking is a way of working in which a small team runs a steady stream of cheap experiments to find what makes the business grow. The term was coined by Sean Ellis in 2010 to describe someone whose job is growth above all else. The method matters more than the name: write a guess, run a small test, read the result, keep the winner and move on.

The experiments reach beyond advertising. A change to the sign-up form, an invitation inside the product or a new pricing page layout all count, because the product is as much a growth channel as any campaign.

Common mistakes

  • Treating it as a bag of tricks. A hack that attracts the wrong customers inflates sign-ups and then churns. Judge each test by a metric that sits close to revenue.
  • Testing without a hypothesis. Nobody learns why a result happened.
  • Calling a test finished too early. A few visits confuse noise with a result. Wait for enough data.
  • Keeping a win without checking retention. The company may be paying to acquire people who leave.
  • Treating it as the same as growth marketing. Growth hacking is often quick, scrappy tests at a single point, such as a signup form. Growth marketing covers the whole customer path, including retention. Use growth hacking to find a promising idea and growth marketing to make it a steady part of how the company works.
Worked example

Suppose a bootstrapped software company gets about 8,000 visitors a month to its blog, and captures only 0.8 per cent of them as email subscribers. The team writes a hypothesis: an offer shown as the reader leaves will capture more. It adds an exit-intent popup in Justuno that offers a checklist in exchange for an email address, and runs it for two weeks while a comparison group sees nothing. Capture rises to 2.1 per cent. The team records the result, keeps the popup, and moves on to the next test, a shorter sign-up form. Each test costs an afternoon, and the wins stack up.

Tools in the example

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  1. Article

    Growth Loop

    The mechanism a test is often built to strengthen.

  2. Article

    Viral Coefficient (K-factor)

    A measure for referral experiments.

  3. Article

    North Star Metric

    The outcome every experiment should ultimately move.