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Growth marketing, in my professional opinion, is all about developing and implementing the processes needed to keep a business growing either profitably, or with a predetermined payback period where the business will have achieved both scale and profitability by the end of that period.
At Omnitail, while we may use the term “growth marketing” to refer to a coordinated effort across teams and service lines to drive growth for a client, continuous growth for an e-commerce business comes down to a few key metrics: Traffic, monetization, and margin.
Traffic: Acquisition channels such as SEM, SEO, paid social, etc. all contribute to traffic acquisition for a business. If we can keep traffic growing on an annual basis, and do so profitably, the business will grow so long as monetization and margin remain steady.
Monetization: Often measured through revenue per click or revenue per session, monetization is a reflection of the rate at which web traffic is monetized. This will vary by source and other factors. While there is a huge focus in the industry on traffic acquisition, we often find that brands and retailers with <$20MM annual revenue have little to no process to improve monetization on a regular basis. Implementing a testing framework within your business that enables you to find ways to improve conversion rates, AOV, etc. is a critical function of growth marketing.
Margin: Improvements in margin will allow for greater tolerance for acquisition cost, thereby allowing for growth in traffic. We suggest evaluating opportunities to reduce both COGS and variable overhead (VOH) expenses, such as payment processing, pick/pack/ship, freight in/out, etc.
Want to learn more about how Omnitail, the profit-driven growth marketing agency, can help you thrive? Contact us for a free profit analysis.
