According to Wikipedia, growth hacking is a relatively new field in marketing that focuses on tactics for acquiring as many users or customers as possible for the least amount of money. As a result, “growth” in today’s jargon appears to mean attracting as many consumers as possible to a startup’s product or service. It’s now important to know what “hack” means. “To cut or sever with repeated uneven or unskillful strikes,” according to the Webster dictionary. It is derived from the old English root word action, which means to sever or cut. We know that the word was first used in the realm of computer programming in the industry (and pop culture). To achieve a purpose, a hacker identified weaknesses in a system and “bypassed” a process. The goal could have been ethical or unethical, but it required knocking down barriers and bypassing a process. This leads us to the conclusion that the term “hack” in the context of growth refers to a method of avoiding a natural growth curve and acquiring as many consumers as possible. In recent years, we’ve seen a few such firms that have primarily concentrated on this type of expansion. These businesses nearly always raise more money than they need, and every consumer they keep on board is unprofitable. The operational rigor required to support an expanding customer base is lacking, resulting in organizational difficulties. As an analogy, these businesses remind us of a well-known fried chicken company’s hormone-fed genetically engineered chickens. The birds became excessively large to the point that they were unable to stand on their own. Is it possible that we’re doing something similar in terms of modifying startups?
This story is from the February 2022 edition of Entrepreneur magazine.
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This story is from the February 2022 edition of Entrepreneur magazine.
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