Higher spending buyers understand why growth services are essential

32% of growth service buyers spend $1,000 or less a month. The highest spenders who spend $25,000 and more a month are 12% below the average spending ranges studied.

Read the full report here https://mygrowththinking.com/growth-hacking-service-report-86-of-growth-agencies-are-not-growing/

Although this doesn’t seem far off, those spending $25,000 and more a month are only 8% of all growth services consumed.

A question asked on Quora.com, “Does outsourcing growth hacking for $1,000/month make sense for your startup?” states that it is dependent on how tight the product-market fit is. Answered by Andrew Constable

Background

Most buyers see growth services as a secondary priority designed to support their products/services, and hence they do not prioritize spending. 23% of growth service buyers spend $10,000 — $25,000 a month with a fundamentally different perspective on growth services than those who spend below this range.

Context

Higher range spending buyers have a great understanding of their growth requirements, usually driven by either an internal need from a growth expert or an external funding source like a venture capital firm that highly encourages them to have a growth capability as a priority.

Takeaway:

Higher spending buyers understand why growth services are essential and are willing to spend the premiums required for better quality services. Better quality services constitute a robust and more sophisticated strategic offering.

Read the full report here https://mygrowththinking.com/growth-hacking-service-report-86-of-growth-agencies-are-not-growing/

GROWTH HACKING SERVICE BUYER BEHAVIOR REPORT

A new study conducted by Growth Thinking, which analyzed 2,150 growth service buyers across 10 industries, found that 86% of growth agencies are — in fact — not growing.

These buyers, which represent $350 million in annual spending power, were surveyed over a period of 24 months. Some key findings in the study include:

  • The top issue among those 86% not growing is talent;
  • The average cost to switch from in-house to external providers is $48,241; and
  • 55% of first-time services used are from freelancers.

The study takes a deep look into spending behaviors, the type of growth hacking services in most demand, and switching costs and reasoning.

Read the Growth Hacking Service Buyer Report by clicking here

ABOUT — Growth Thinking

Growth Thinking is a design methodology for growth hacking by the bestselling author of Ready Set Growth Hack, Nader Sabry. It has been applied as a book and a $1 million challenge known as the 10-day growth hacking challenge, which has generated $138m in revenue. This methodology has been adopted by universities like Harvard and Stanford, fortune 500s (Google/Microsoft), and unicorns.

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Nader Sabry — Growth Hacking

Nader Sabry — Growth Hacking

Strategist entrepreneur & innovator in space tech, government, & health/wellness. Has raised $20m directly /+$100m indirectly for startups. www.nadersabry.com