3: Defining Growth Hacking

This chapter explores the evolution and application of growth hacking (GH) as a methodology for rapidly scaling businesses. It begins by examining the initial wave of GH, characterised by unconventional tactics employed by digital firms like Dropbox, LinkedIn, and PayPal to achieve remarkable growth. These companies prioritise resource leveraging, outsourcing, and building rich ecosystems, capitalising on inherently scalable digital resources and network effects. The authors then delve into the concept of Customer Acquisition Cost (CAC) and its significance in evaluating business profitability and scalability, detailing its calculation and implications for strategic decision-making. Furthermore, they discuss the Customer Lifetime Value to Customer Acquisition Cost ratio (CLV/CAC ratio) as a key metric for assessing the efficiency and sustainability of customer acquisition strategies. Transitioning to the second wave of GH, the chapter explores debates surrounding its distinction from traditional digital marketing practices. Overall, the text provides a comprehensive overview of GH’s past and present, highlighting its significance in driving business growth and innovation. Examining the dynamic landscape of digital marketing methodologies, while traditional digital marketing employs established tools and techniques within defined boundaries GH stands out for its experimental nature and systematic approach to innovation. This chapter draws on insights from industry experts and case studies.