The Silo Effect is hurting your company, here’s how to fix it!
There’s a common belief that marketing & sales are the only areas responsible for the company’s growth. That may well have been true in the past, however, as competition increases, new methodology arises and costs go up. Other areas of the same organization become responsible for the company’s growth just as well.
In today’s reality, focusing on retention might take you further than just acquiring new users, or increasing revenue might be a short path than doubling down your number of users. To do this, there should be someone looking at all areas of the organization asking the question: which area will have the most impact on our company’s goal if improved?
That’s where a growth team comes in! Different from a marketing team, the growth team has the autonomy, flexibility, and responsibility to focus their efforts anywhere that will cause the most impact toward the NorthStar Metric (the single metric that best captures your company’s health).
Some real-life examples of when a growth team focused beyond marketing and significantly impacted the whole of the company’s results :
Survey Monkey: as a survey tool, they know that for their customers to successfully achieve their desired outcomes, they need to reach out to people who might not be SurveyMonkey customers yet and get them to take a survey. So they set up a landing page promoting SurveyMonkey which users fall into once they finish filling out a form. Their own customers are consequently generating more business opportunities at no cost: that’s a growth loop.
Log: the growth manager at Log had a mission to double down their company size (in terms of revenue) during the following 12 months. The most basic instinct would be to focus on acquiring more drivers and local institutions (their main customers).
However, they found out that their HR area was struggling to reach its goal of new engineers hiring and that was hurting the company’s ability to improve their product and deliver the roadmap.
Once they intervene — with the display, ads, and a hiring funnel — they were able to quickly quadruple their HR prospects, quickly improving their product and, consequently, achieving growth.
Pinterest: Pinterest aimed to acquire more users. To do that in a different and sustainable way, their growth team used a search engine indexing strategy wherein their users would get their pins on the SERP (search engine results page) leading to more users finding out about content through search engines and thereby signing up for Pinterest (and the loop goes on).