Without an optimized growth system, long-term exponential growth isn’t possible
Growth Service focus area
72% of growth activities are focused on revenue acquisition. There is three times more focus on acquisition vs. retention, which creates a growth leak
65% of growth activities, which is your team’s priority for the next 12 months, are acquisition efforts according to The State of Growth 2021. Retention is at 32%, accounting for half the focus of resources and efforts. This also indicates a growth leak
Growth leaks are where a growth system cannot balance the three main growth activities: revenue acquisition, customer retention, and growth. The three components work in sequence, you acquire, retain and grow revenue. If one of the three components is not aligned, well resourced, or not well optimized, you will have a growth leak.
Without robust revenue acquisition, the whole growth system doesn’t work. Still, without a way to capture the revenue optimally, it’s an ongoing issue, and this is one of the top-level switching reasons that is not seen. This is not visible because the three components are NOT seen collectively but instead need to be seen as a single and integrated growth system. This is further emphasized by 56% of organizations with a growth system. About 4% of organizations have optimized their growth system. Half a percent have harnessed their growth system for exponential growth. Optimized growth systems are rare.
Building a growth system is vital to sustaining long-term exponential growth. This enables clients to have the power to work with freelancer agencies and their own in-house growth services or even create their own hybrid processes to work between internal and external growth services.
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.