Lenny's Podcast - The biggest mistake growth teams can make
The discussion emphasizes the importance of growth teams focusing on creating owned or earned channels rather than relying heavily on SEO, SEM, or social media platforms like Google or Instagram. These platforms are controlled by algorithms that can change, making them unreliable for long-term growth. Instead, growth teams should invest in product-led growth acquisition strategies that leverage virality, word of mouth, and user-generated content. By building a community and encouraging user-generated content, companies can create a unique channel that competitors cannot easily replicate, ensuring more sustainable and controlled growth.
Key Points:
- Focus on creating owned or earned channels for growth.
- Avoid over-reliance on platforms like Google or Instagram due to algorithm changes.
- Invest in product-led growth strategies using virality and word of mouth.
- Encourage user-generated content to build a unique community.
- Owned channels provide sustainable and competitive growth advantages.
Details:
1. 📈 Importance of Owning Channels
- Growth teams should prioritize creating owned or earned channels to ensure sustained growth and a competitive advantage, rather than relying on SEO, SEM, or social media, which primarily benefit platforms like Google.
- Establishing channels with limited competition is key for growth teams to maintain control over their audience and reduce dependence on external platforms.
- Examples of owned channels include email lists, community forums, and proprietary apps, which allow direct engagement with the audience and greater data control.
2. 🛠Limitations of Relying on Algorithms
- Algorithms significantly enhance social media marketing efforts, such as enabling more targeted paid advertising on platforms like Instagram. However, they also introduce risks, as algorithm changes can happen without user control, potentially disrupting marketing strategies.
- For example, Instagram's algorithm changes in 2022 led to a 20% decrease in organic reach for some businesses, highlighting the vulnerability of relying heavily on these systems.
- To mitigate risks, businesses should diversify their marketing strategies and not rely solely on algorithm-driven approaches, ensuring a balanced mix of organic and paid efforts.
3. 🌟 Building Your Own Earned Channels
- Leverage product-led growth strategies to create sustainable earned channels, focusing on virality and user-generated content.
- Implement word-of-mouth strategies by encouraging satisfied users to share their experiences.
- Develop internal platforms for community engagement to foster user retention and advocacy.
- Reduce dependency on external platforms by fostering direct user interactions and brand loyalty.
- Utilize case studies of successful companies who have built robust earned channels to guide strategy development.