Have you ever heard of product-market fit, or PMF? Product-market fit refers to having a product your users can’t live without – which means that your product fits the market you’re in. Also, some sellers started accepting PayPal only for payments, which meant that you had to create an account in order to buy from them. This deal meant that PayPal would show up as a payment option, which got them exposure and credibility. PayPal managed to get a deal with eBay as well.
The lifetime value of each user made those $20 a drop in the ocean.īut this is not the only growth hack that PayPal used. The online payment giant also used growth hacking techniques to increase their user base.įirst, PayPal used a referral system too – they actually paid users to join! For each friend you referred to PayPal, you would get $10 credit on your account – and the friend would also get $10 to start using the app too.Īs the company planned, $20 was nothing in comparison to what PayPal could profit from each user. If users could easily get more storage at any time, why would they leave? PayPal This system also ensured a very low churn rate. This allowed users to import the contacts they wanted to share with zero effort. To make it easier for users to share Dropbox with their friends, the subscription process used your Facebook or Google account. This meant that each new member acquired only cost Dropbox 500 mb of storage space. This is how it went: if you referred a new customer to Dropbox, both of you got 250 mb of extra storage space upon signing up.Īlso, you could invite as many new users as you wanted. So, Dropbox created a referral system whereby by sharing the product with other users, you as well as the person you shared with get additional benefits.
However, when they first started out, they had a very small budget for marketing. The cloud storage service Dropbox is worth billions right now. These strategies made them the multi-million dollar businesses they are today.Īlthough these strategies are not exactly replicable in that scale or for different businesses, they are a good source for inspiration if you want to find out how to hack your company’s growth. In this article, we’ll go through ten examples of great growth hacking strategies from popular brands. Growth hacking can involve a few different channels, word of mouth, email marketing… It’s not about the channel used but all about strategy and tactics.
By definition, growth hacking is the use of cost effective marketing tactics that help grow and maintain an active user base, whilst getting exposure. Even though growth hacking has been around for a few years now, this tactic still baffles a lot of digital marketers.
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