The APAS Show blog brings an interview with specialist Thiago Reis, with Growth Machine, who elaborates the steps to apply the methodology
Hacking the supermarket is what many companies have been doing with the help of technology and new management methodologies. One of those, Growth Hacking, has been gradually growing not only in the companies’ IT departments, but also in supermarket chains with varied sizes. The objective of this methodology is to optimize what actually has potential to leverage the organization’s development in a performance funnel divided into five phases: acquisition, activation, retention, income and indication.
The APAS Show blog interviewed Thiago Reis, the founder of Growth Machine, a consulting company specialized in organizing and simplifying processes aimed at making the company grow without making high investments.
ASB: Could you explain the hacking growth concept to managers and entrepreneurs who still don’t know that method?
TR: It is a scale method created at the Silicon Valley that helps startups in all segments to have unconventional growth. The methodology was developed also because tools such as Facebook and Google are saturated nowadays. Facing this reality, the digital market realized that without a strategy to create traffic at a website or app no company would reach its objectives. An example is Dropbox, which came up when Google Drive already existed as competitor. When the Growth Hacking strategy was implemented, they were able to have expressive growth at the on-line market without depending on the conventional advertising and marketing channels.
ASB: And how has this methodology become so efficacious that it can be implemented in different business models?
TR: Everything started when technology companies started to collect money and gain more and more visibility with the conventional tools. It was necessary to find a way to grow fast without investing so much money in those conventional channels. Success has made Growth Hacking a global trend since 2012, when BitTorrent, a download tool, needed to develop a strategy to increase and optimize the paid product and, by using the Growth Hacking, it was able to increase incredibly the number of users.
ASB: When the method is applied to supermarket management, which are the results expected for the operation?
TR: The way Growth Hacking’ structure is done it focuses on the sales funnel. One has to think in which phase the method will be used. It could be to increase client activation, new registers, to make consumers contact the store for the first time or to convert them. We studied the whole buyer journey to explore different points and to learn how we can increase results. According to each company’s priority we act in certain phases of the sales funnel.
ASB: And what does Growth Machine do to bring that methodology to a supermarket operation?
TR: Usually we take the technology to the supermarket when a manager needs to study the income, understand where new opportunities are and how to leverage them to increase the store’s bottom line. If the income per user is satisfactory, Growth Hacking can act as a lever to increase the number of consumers’ visits to the establishments. However, to do that we have to work the return. When structuring the process at a supermarket, the manager is able to go beyond solving a specific problem at one of the operation’s ends. It is possible to know the challenge well and to test all hypotheses.
The conventional methods may tend to invest money without necessarily checking whether or not the strategy actually works. According to each operation we will find levers and opportunities that will help making business grow. In AirBNB, for instance, the great turn of events was to find out that using more professional pictures of the properties significantly increased the occupation rate. Therefore, it is not related to the digital environment or programming knowledge. It just takes to analyze the problem, create a hypothesis and test it to see what works and what can be discontinued.
ASB: How does the strategy based on the sales funnel work in a supermarket operation?
TR: It may be the stock, human resources, purchases, relationship or any other area of the supermarket chain, the objective is to understand what happens in all phases because some of them may need more attention. The funnel is divided in these five phases:
We work in these five point and we analyze each one carefully to see which one needs the Growth Hacking strategy.
ASB: Is it possible to apply Growth Hacking in establishments of any size? Which is the most recommended professional profile to coordinate this process?
TR: Today this methodology is the base of the management of any company because it is possible to analyze what really works at the store. At a point of sales firstly you have to know what problem the operation is facing that moment.
The ideal professional to perform the function has to understand three lines of thought: content marketing (writing articles and mastering social networks’ tools), programming (automating users’ actions) and data analysis (capacity to measure and interpret the information collected). To apply the Growth Hacking methodology it is necessary to prioritize investments based on three aspects:
- What is easier to implement at the store?
- With what confidence level the strategy will work?
- Which is impact it can cause on the company, clients and employees?