Are you struggling to grow your business?
Getting a startup from the launch phase to the growth face is not always easy, but it's doable!
Here's the pro tip… create a growth marketing canvas.
A Growth Marketing Canvas is a planning tool that allows you to map and create a more extensive and actionable marketing plan.
A canvas is customer-centric, and it helps discover innovative ideas, aligns your team, and develops a sustainable growth strategy.
In this guide, I will explain the key elements of a marketing canvas funnel. I've broken the guide into three main sections, and this is the first section highlighting the three main components, which are:
- Target audience
- Value proposition
- North Star Metric
Let's get started.
When it comes to growth marketing, you need to identify your target audience to avoid broad marketing. Broad marketing leads to the creation of generic messages which don't resonate with a specific group, and that's why you should identify your target audience.
A target audience refers to a group of consumers with a higher chance of buying your products/services.
Ideally, you can break your audience according to four aspects:
- Demographics - segmenting according to age, sex, marital status, occupation, income, religion, or education level
- Behaviors - segmenting according to consumer behavior such as customer loyalty, online shopping habits, or the actions taken to a website
- Geographic- splitting your market based on location
- Psychographic- segmentation according to mental or emotional attributes
Benefits of Target Identification
- You eliminate people who don't value your products services-bottom feeders
- Better marketing spending because you only spend on your prospects
- Better messaging focus based on your customer needs
- Time-saving because you only spend time on your prospects
How to Identify Your Target Audience
The following steps should help you in realizing your target audience:
1. Analyze Your Current Customer Base
The best way to know your audience is to look at the customers who already use your products/services. How old are they? Why do they like your products, and what are their interests? You can collect this vital data by conducting surveys or interviews.
2. Creates Personas
Personas are fictional customers that you create to represent the actual customers who might be interested in your products.
Creating personas helps you understand your clients' needs, goals, interests, and expectations. You can create personas based on the current purchasing habits of your clients, surveys, or digital engagements to get a better view of your customers.
3. Use Google Analytics
Google Analytics provides detailed reports about your customer behaviors. By analyzing the reports, you can identify where most of your customers come from and the services they like most.
Once you have identified your target audience, the next step is to reach them through targeted advertising, content marketing, social media, or even via emails. You should be consistent when reaching them out, appreciate them, and provide the correct information, so you don't lose them.
A value proposition is the core of your business. It clearly explains why customers should buy from you and not your competitors. It is also a great conversion factor because it determines whether you will close or lose a sale.
Understanding Value Proposition and Its Key Elements
A value proposition promises the value your customers get when they decide to buy your products. You can present your value proposition as a statement that introduces your brand's services and explains the value of the services to potential customers.
A good value proposition should have three main elements:
- Visual element
Headline - the headline mentions the benefits customers get by buying from you. The ideal headline should be clear, concise, and catchy to win readers' attention.
Paragraph - it provides a detailed explanation of your business, what it offers, and who it sells to. You can utilize this section to expand your headline.
Visual element- sometimes, visuals provide detailed information more than words. You can use a video or an image to capture your audience's attention.
How to Create a Value Proposition for Growth Marketing
It's a lot easier if you follow a step-by-step process to create a value proposition, other than brainstorming it within a day. Here are the essential steps to follow when creating a value proposition for your business:
- Identify who you are, your current business position, and why you want to grow
- Carry out a competitive analysis to know where your business currently stands in the market
- Identify the customers' main problem and how it's related to what you offer
- Identify the benefits of your products in regards to your customers' problems
- Connect the value of your product to the customers' problem
- Present yourself as the preferred market provider for that particular product
Note: value proposition requires time, patience and collaboration, so do not be discouraged. Involve your team to simplify the process.
North Star Metric
North Star Metric is another vital aspect for long-term business growth. Simply put, the North Star Metric is a metric that your business uses to measure growth. It measures the value that your business brings to your customers, then revenue, and your long-term growth.
The main idea behind a North Star Metric is that if your customers are satisfied with your products/services, your revenue will increase, and you will enjoy a more extended market stay.
A good North Star Metric brings more customer focus, improves clarity, and increases team focus.
Examples of North Star Metrics
Check out these examples to get a clear picture of what North Star Metrics:
- Ecommerce firms - number of daily users, number of weekly purchases
- Social media firms - number of daily active users, sign up and retention rate
- Hotel and hospitality business - number of nights booked, number of daily customers
A growth in your North Star Metric signifies your business overall.
How to Find Your North Star Metric (NSM)
Here's is how to find your North Star Metric:
- Identify what's essential for your business functioning - you may create a list starting with the most important things
- Identify the metrics used to measure the business activities in your list
- Check the primary metric used to measure the success of almost all your business activities
- The most common metric is your North Star Metric
The best NSM should be customer-centric because, after all, a metric that brings money and does not satisfy customers may not last for long.
Here are company-specific NSM examples:
- Zoom - number of weekly hosted meetings
- Netflix-total hours streamed
- Medium- total hours spent reading
- Facebook- daily active users
Creating Your Business Growth Marketing Canvas
Having a great and effective growth marketing canvas is easy and more convenient than you think. You may spend some time on the process, but the benefits are worth it. Still struggling with some of the concepts then maybe you should think about working with a growth marketing consultant?
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