when to build a growth team

WHEN DO WE BUILD A GROWTH TEAM?

Samuel J. Woods

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Do you know what you’re doing with your marketing?

Do you know the “How” and “When” of implementing growth marketing strategies and tactics?

If your work revolves around increasing leads and sales, the struggle is not about “If” you should use high-growth marketing, but more about “When” you should.

For many, the challenge facing anyone responsible for achieving growth via marketing is understanding where you are right this moment – and acting accordingly.

As a CMO, VP of Marketing, or anyone in Marketing, it’s not a question of “If” or “How” anymore, it’s a question of “When”.


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You have the Resources (knowledge, how-to, team members, talent, experience, campaigns, etc.)

But your question is: “When do we build a growth team?”

I spoke briefly about whether you should use a dedicated team-within-your-team, or roll out team-wide changes of rededicating your focus to growth process here…

…But the most common struggle is see with clients is a little bit about “How” but even more about “When”.


THE “WHEN” OF GROWTH DEPENDS ON YOUR BUSINESS

STATE – DO YOU KNOW YOURS?

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The concepts of “Business Lifecycle Stages” and “Stages of Growth” models were the most frequently used mental model for understanding your business from around 1962 to 2006.

However, there’s been a lack of consensus or empirical confirmations of these theories.

They look and sound true, so they must be, right?

You’ll find fascinating research that goes against these models and instead proposes a more “dynamic” approach for explanatory models.

I agree with a dynamic state framework and model.

Whether they are 100% accurate is besides the point: they’re mental models, and so only exist to make reality legible and understandable enough to guide decision-making.

For a business owner or someone in charge of marketing, this basic idea that your business finds itself in a general stage or phase of growth, is tremendously valuable for plotting your next marketing move.

Where your business is, and where it intends to go, dictates not only your strategies, but your timing as well.


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For example, it makes no sense for small Startup (without, say, funding) to engage in Corporate Marketing (most often only about Brand Marketing).

As a Startup, above all, you need Traction and finding Product/Market Fit.

You don’t need ads on TV.

AirBnB is now doing TV ads, but they’re way past the Startup, Traction, and Growth phase. They’re established.

You most likely don’t need t-shirts and pens with your logo on it.


And yet, you find plenty of Founders or their newly hired Marketing person who do just that.

Stop. Just stop.

Before you go any further, do you even know what and where you are?

THE MODEL TO HELP YOU MAP WHERE YOU ARE

& WHAT TO DO NEXT

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A quick search will yield a virtual cornucopia of graphs, tables, and models for a “business lifecycle”.

Lots of chefs in the kitchen, and it’s a messy soup because of it.

It’s easy to get confused.

I’m going to make this easy for you: I’ve distilled over 50+ graphs into 1 simple and applicable model.

This applies to both a B2B and B2C business, and takes into account your product type (product and/or service).


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SEED / STARTUP GROWTH / BUILD GROWTH / ESTABLISHED EXPANSION MAINTAIN / MATURITY

TRACTION MARKETING

GROWTH MARKETING

BRAND RESPONSE MARKETING

BRAND CORPORATEMARKETING

SMALL GROWTH TEAM+ AGILE

EXPAND GROWTH TEAM + SYSTEMS, PROCESSES

EXPAND TEAM + SYSTEMS, PROCESSES,

CAMPAIGNSGROWTH

MARKETING

DEDICATED GROWTH TEAM + MARKETING

FULL TEAM + SYSTEMS, PROCESSES, CAMPAIGNS

Small team (1-3); speed of execution; high-growth strategies; testing and experimentation; agile

Creation of systems and processes; expanding team;

implementing “traditional” marketing strategies

This is where you combine “traditional” marketing with Growth

Marketing; have a dedicated, separate Growth Team for

continuous experimentation

Use a dedicated team and resources for

managing expansion.

Specific Growth activities does by dedicated team and for research experimentation

Product/Market Fit?

Expansion of Product/Service?YES

YES

YES

YES

NO

BUSINESS LIFECYCLE MARKETING FOR B2B, B2C, SAAS, SOFTWARE, TECH

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Here’s a key to understanding all this: I’m convinced the “stages” and “phases” of a business are dynamic and fluid.

Business MBA’s and theories will protest, but after years of experience with marketing, you will not persuade me that a business goes, in a clean and straight manner, from Startup to Build, Established, Maintain, Maturity, and so on.

Your business, and mainly your products, will be shifting in and out of these “states” throughout the “lifetime” of your business.

Your business, organization, and team needs to be Agile and be able to manage dynamic state changes.


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No, you will not forever be in the Product/Market Fit state, or be thrown around and out of control…

…But, say you have an established product, but you’re launching a new one – now what?

You enter a state of Traction and the search for Product/Market Fit – and use marketing strategies accordingly.

For you, this means that each “state” represents your attempts to most effectively match internal capacity and process with external customer or market demand.

So, what then is the 80/20, the simple list, of what you should be doing in each state?


WHAT MARKETING YOU SHOULD BE DOING IN EACH STATE

OF YOUR BUSINESS

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MOST FREQUENT QUESTIONS

QUESTION 2

When should I build and use a Growth Team?

QUESTION 1

What marketing should I do in each state?

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• When you’re in the Seed and Startup phase, you need Traction Marketing (A Growth Team often consisting of 1 or a few more + Growth Marketing strategies and tactics).

• When you’ve found Product/Market fit, you’re in the Growth / Build phase, and you need a full Growth Team + Marketing, while including more “traditional” marketing as you go; documentation of process, setting up systems, etc. is imperative here.

• Which will bleed into the Build / Established phase, for which you need Brand Response Marketing. This is where you combine “traditional” marketing with a dedicated Growth Team for continuous experimentation and testing.

• When you move into Expansion, you need another cycle of Growth Team + Marketing for the particular expansion.

• When you reach the Maintain / Maturity phase, you need Brand Corporate Marketing.

• Next depends on where the company is going; you’ll either decline, divest, diversify, or exit.


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If you’re a Startup who’s not yet reached sustainable Product/Market Fit, you need to executive on Growth Marketing strategies and find Traction. If you find and use a “growth hacker”, this person is often your team, along with any creative or data support.

If you’re reached Product/Market Fit, with Traction, you now focus on building a Team and Process. This is often with the “growth hacker” as the team lead, and you hire for responsibilities and positions.

That’s the 80/20 version of the answer. There’s more to it, such as, what exactly, do you actually do when you’re in the Traction, or Growth, or Build, or Expansion state.


THE NEXT MARKETING STEP FOR YOUR BUSINESS

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The focal point and key to P/M Fit, Traction, and marketing throughout different states is your Buyer. Your Buyer is the thread and anchor in a sea of change. Everything you do revolves around aligning with your Buyer.

As much as you’re managing internal state changes, once you realize that you’re also managing and influencing state changes with your Buyer, new possibilities for creativity, ideas, and execution opens up.

Your ability to beat competition is relate to how well you stay agile and adjust to change.

Take inventory of your state and marketing – where are you, and where do you want to go?


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Few teams will have as much impact on your marketing as sales as a Growth Team will.

If you want to see exponential and predictable results from your marketing, you need one.

Getting that is more about timing and context than anything else.

For that, your team will make it or break it.

So, how and when do you build one?


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Given that tempo and circumstance are mostly overlooked, here’s why they matter:

Too fast, and you’ll lack the systems to be able to fully capitalize on channel hacks.

Too slow, and you’ll miss the rising tide and trends that could’ve brought you exponential results.

Your Growth Team is the linchpin that will help you pinpoint where you are (context) and when you are (timing).

And then execute the right leverage points to catapult you forward.

As soon as you’ve educated yourself on “Growth Hacking”, the next step is always: “How and when do we build a Growth Team?”


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But to answer that, you have to take just one step back so you can race forward.

See, part of that question assumes a lot, and is missing another crucial element:

“What marketing should we prioritize? We’re at X phase and are not sure”

The ‘X phase’, of course, is the phase your business finds itself in.

Now, you may recall that your business and products/services aren’t exactly on a linear “lifecycle” of change.

Instead, think of the “lifecycles” as various “states” and “phases.

Here’s a key idea from the first part on when to build a growth team:

For you, this means that each “state” represents your attempts to most effectively match internal capacity and process with external customer or market demand.


What “phase” is your business in?

What are you trying to accomplish?

What are your existing capabilities?

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So, whenever you’re asking yourself what marketing you should deploy and when you should build a “growth team”, you always need to consider three things:


01 0302

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In this Phase, you need: Traction Marketing and small Growth TeamYou need Traction Marketing. This is marketing focused exclusively on customer acquisition within channels, characterized by experimentation, funnel tests, channel spread, messaging testing and more.

Your Growth Team: You start with a team of 1 who will wear a couple of different hats to start, but not for too long. Have this person focused on strategy and analyzing experiments and use contractors for specialized roles at the first sign of traction in various channels. You can then add team members according to traction. Focus on documentation and organization learning to capture knowledge and procedures. If you are funded, then build a core team of 3, of which one is lead and the other specialist and analyst.

WHICH PHASE BEST DESCRIBES WHERE YOUR COMPANY IS RIGHT NOW?STARTUP / SEED PHASE (BOOTSTRAPPING + FUNDED)

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In this Phase, you need: Growth Marketing and expanding Growth Team

You need Growth Marketing: At this point, your Traction Marketing should have identified 1-3 channels that are generating acquisitions for you. Now it's time to turn on the faucets and "growth hack" your way to exponential results. Marketing here is focused on making the most out of each channel, continue testing and experimentation, and focus on results. Don't engage in brand marketing here.

Your Growth Team: You hire team members full-time and keep a few contractors if necessary. Hire for specialization and roles, while your team leader continues the lead on strategy and direction. Ideally, your time has: 1 team lead, 1 data and analytics, 2-3 channel specialists. You only have a dedicated team.

WHICH PHASE BEST DESCRIBES WHERE YOUR COMPANY IS RIGHT NOW?GROWTH / BUILD PHASE (YOU'VE FOUND PRODUCT/MARKET FIT)

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In this Phase, you need: Brand Response Marketing and Growth + Traditional Team

You need Brand Response Marketing: When you have established growth in 2-4 channels, you expand by adding "Brand Response" Marketing. This is a blend of branding and growth hacking. You don't abandon one for the other. You can use more long-term campaigns aimed at promoting market authority and leadership (brand) while still maintaining campaigns for growth.

Your Growth Team: Add full-time team members for branding. Focus on crafting and implementing systems based on what you've learned. It's vital that you expand on your processes documentation and shift focus towards "systems thinking", where you see your team and activities a system. You could potentially have 2 team leads, but the "Growth Marketer" should always have the final word. Maintain focus on growth.

WHICH PHASE BEST DESCRIBES WHERE YOUR COMPANY IS RIGHT NOW?BUILD / ESTABLISHED PHASE (YOU HAVE ESTABLISHED MARKETING & SALES CHANNELS, REVENUE, ETC.)

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In this Phase, you need: Brand Response Marketing and Growth + Traditional Team

You need Growth Marketing again: While you maintain and expand "Brand Response" marketing, you implement cycles of growth for the objectives (launching new product or service, expanding into a new market, etc.) Any "new" marketing should always be focused on using growth systems and processes. Treat the marketing like startup marketing.

Your Growth Team: Use a dedicated team for this. It'll either be a Growth Marketer + 1-3 team members or using contractors again.

WHICH PHASE BEST DESCRIBES WHERE YOUR COMPANY IS RIGHT NOW?EXPANSION PHASE (YOU'RE LOOKING TO LAUNCH NEW PRODUCT/SERVICE, ENTER A NEW MARKET, ETC.)

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In this Phase, you need: Brand Corporate Marketing and Growth + Traditional Team

You need Brand Corporate Marketing: These are "traditional" campaigns, such as TV ads, brand-focused advertisement, thought-leadership, and primarily about branding. Implementation of specific Growth Marketing would be if there's a new initiative for products, services, or expanding market. However, you should still engage in Growth Marketing within new channels and platforms.

Your Growth Team: Keep a dedicated team (apart from your traditional team) that maintains experimentation and testing on any new channels or platforms that are created. It's vital for the continued success for you to keep trying new avenues for acquisition and capturing market share. If you go stale, you will lose to competitors.

WHICH PHASE BEST DESCRIBES WHERE YOUR COMPANY IS RIGHT NOW?MAINTAIN / MATURITY (YOUR COMPANY HAS MARKET SHARE, ESTABLISHED PRODUCTS/SERVICES, ETC.)

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If you’re a Startup who’s not yet reached sustainable Product/Market Fit, you need to executive on Traction Marketing strategies only and find those customers or users fast.

Your whole team might only consist of just one “growth hacker”, along with any creative or data support in the form of contractors.

You should take a look at the Growth Hacking Sourcebook, and especially the section on Growth Hacking case studies to start.

There are also plenty of other resources and articles on achieving Traction and lists for where you can validate your ideas.

IN THE THE SEED / STARTUP PHASE, YOU NEED: TRACTION MARKETING

Marketing

Traction Focused

Experiments Channels

Messaging

Funnels28

Contractors

Growth TeamGrowth Marketer / Hacker

SystemsCapture Learning

Process for Running Experiments STARTUP / SEED PHASE

Channel Specialist

Data Analyst

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When you’ve hit Product/Market Fit, you double-down on high-velocity strategies focused on capitalizing on the channels you’ve uncovered.

Here’s where you’ll find most “growth hacking” to happen. The idea is to discover tactics for acquisition through experimentation. Your Growth Marketing consists of focused campaigns that tend to bias Acquisition, Activation and Retention more than anything else.

As for your Growth Team, it’s still mostly your “growth hacker” or “growth marketer as team lead. But, now is the time to capture knowledge and put in place systems, as well as making your first full team member hire.

IF YOU’VE FOUND PRODUCT + MARKET FIT, THEN YOU NEED: GROWTH MARKETING + BUILD GROWTH TEAM

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Growth Marketer / Hacker

Growth Team

Fewer Contractors

Data Analyst

Channel Specialist


Process for Running Experiments

Marketing

Growth Marketing FocusedDouble-down on Key Channels

Experiments

Messaging

Funnels

GROWTH / BUILD PHASE

Channel Specialist

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With growth already established in a few key channels, and you’re consistently generating new users and customers, now and only now do you add “brand marketing” elements to the mix.

But it’s important to maintain the “growth mindset” for every campaign you run. You’re using more creative alongside expanding into traditional tactics and channels – but you never lose sight of tracking, data, and analytics.

You can now add team members for traditional marketing to your Growth Team. I would caution against “silo-ing” and splitting teams up. It’s much better to foster a “culture of growth hacking” in your growing marketing department.

At this point, Uber is doing this right.

IF YOU’RE ACHIEVING GROWTH, THEN YOU NEED: BRAND RESPONSE MARKETING

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Data Analyst

Growth Team

Growth Marketer/Hacker

Channel Specialist(s)

Brand Specialist



Process for Campaigns

Marketing

Brand Response Marketing FocusedAdditional Branding & Experience

Blend with Growth Marketing FundamentalsExperiments Channels

Messaging

Funnels

BUILD / ESTABLISHED PHASE

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For established companies, you’re not always looking to capture market share through marketing but it can certainly be a help.

Alongside your traditional marketing, you should still deploy Growth Marketing focused campaigns. The same systems and processes as earlier apply but you can take a cyclical approach and run 90-180 day sprints on particular campaigns.

In this phase, your business is best served by using Growth Marketing for expansion projects and/or a new product.

For your Growth Team, this should be a separate, dedicated team consisting of 2-4 specialized team members who are exclusively focused on these activities.

IN THE EXPANSION AND/OR NEW PRODUCT MARKETING PHASE, YOU NEED: GROWTH MARKETING & TEAM

EXPANSION PHASE

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Data Analyst

Growth Team



Contractors (as needed)




Marketing

Growth Marketing FocusedDedicated to Particular Campaigns

Additional Branding & ExperienceExperiments Channels

Messaging

Funnels

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You need Brand Corporate Marketing, which are “traditional” campaigns, such as TV ads, brand-focused advertisement, thought-leadership, and primarily about branding.

Implementation of specific Growth Marketing would be if there’s a new initiative for products, services, or expanding market.

However, you should still engage in Growth Marketing within new channels and platforms.

Your Growth Team? Keep a dedicated team (apart from your traditional team) that maintains experimentation and testing on any new channels or platforms that are created.

It’s vital for the continued success for you to keep trying new avenues for acquisition and capturing market share. If you go stale, you will lose to competitors.

IF YOU’VE REACHED A MATURITY PHASE, THEN YOU NEED: BRAND CORPORATE MARKETING

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Data Analyst

Dedicated Growth Team

MAINTAIN / MATURITY PHASE



Contractors (as needed)




Marketing

Brand Corporate Marketing Focused Specific Growth Marketing Strategies & Tactics for Campaigns and Expansion

Experiments Channels

Messaging

Funnels

Platforms

BUILDING A GROWTH TEAM AT THE RIGHT TIME,

FOR THE RIGHT REASONS

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Getting your Growth Team right is more about timing and context than anything else.

Timing, in that you understand what trajectory your company is on, and what the trends are.

Signs of traction are encouraging but if you pull the trigger too soon, you end up with a bloated team that’s failing to execute and pull through on results.

Without a temp shift towards Growth in the Building or Expansion Phase, you’re also going to lose out.

Context, as in having an astute awareness of what phase your business is in.

Failure to recognize that you’re in a Traction phase will result in missed channel opportunities. Likewise, if you’re not building a team during the Growth / Build Phase, you won’t have robust yet agile systems and processes in place – you end up with random experiments and a lot of waste.
