Explanation of Product Marketing and Growth Marketing. Product Marketing and Growth are two functions that connect a company’s R&D and commercial teams, allowing both to deliver additional value to the market and create income.
One major contrast is that Product Marketing focuses more on producing value before the sale, whereas Growth focuses more on creating value after the sale.
What is Growth Marketing?
Growth Marketing uses specific techniques and strategies to help companies increase sales.
The techniques range from creative to scientific and include different types of data-driven marketing that use different sources of consumer insight.
This post will focus on Growth Marketing from a consumer perspective.
Growth Marketing is for customers who already have the product or service, and it focuses on increasing the value of those customers through either cross-selling new products or upselling existing products.
Growth Marketing is also concerned with improving customer experience through better customer service, identifying customers’ pain points, and increasing customer retention.
What is Product Marketing?
Product Marketing differs from Growth Marketing in that it is concerned with attracting new customers to a product or service. It is for consumers who are not yet using a particular product or service. This is by increasing awareness of the product or service before it reaches the market, and then introducing it to new markets as soon as possible after its introduction.
Growth Marketing benefits
Benefit 1: Increased Sales
The main goal of Growth Marketing is to increase sales. This can be done in a number of ways, including:
Increasing the number of potential customers by finding new audiences for the product or service;
Boosting the number of sales to existing customers through better product positioning and increased engagement;
Increasing the amount of money that each customer spends in a single transaction.
Benefit 2: Increased Customer Lifetime Value (CLV)
The second main goal of Growth Marketing is to increase the value of a customer over time. This can be done by either increasing the amount that each customer spends per transaction or by increasing how often they visit your website or use your product.
By increasing CLV, companies can increase the amount of profit they make from an individual customer. As CLV increases, profitability increases and a business becomes more sustainable.
Benefit 3: Improved Customer Experience (CX)
Customer experience is one area in which Growth Marketing can have a significant impact on the business. By using data to identify what customers like and dislike about your product or service, you can make improvements in your business that will improve CX and, ultimately, customer retention.
These improvements could include:
Improved product quality;
Reduced wait times for customer service;
Improved troubleshooting information;
Reduced shipping costs;
Improved delivery speed;
Improved website navigation; and
Improved website speed (i.e., reducing page load time).
Benefit 4: Better Conversion Rates with Paid Ads
When used in conjunction with Paid Ads, Growth Marketing techniques can create significant benefits to a company’s bottom line
Using remarketing ads to bring back previous visitors who did convert on their first visit. This type of ad brings back previous visitors who already know about your product or service, creating an opportunity for them to either purchase more items or provide feedback on their experience with your company.
For these reasons, Growth Marketing is becoming increasingly important for businesses that want to expand their market share and make more money from existing customers.