Marketing managers, CMO's, and marketing VPs all need to understand when they should start building a growth team in their business. This will help you understand when to start and how to get there.
1. WHEN DO WE BUILD
A GROWTH TEAM?
Samuel J. Woods
2. 2
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”.
WHEN DO WE BUILD A GROWTH TEAM?
3. 3
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”.
WHEN DO WE BUILD A GROWTH TEAM?
4. THE “WHEN” OF GROWTH
DEPENDS ON YOUR BUSINESS
STATE –
DO YOU KNOW YOURS?
5. 5
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.
WHEN DO WE BUILD A GROWTH TEAM?
6. 6
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.
WHEN DO WE BUILD A GROWTH TEAM?
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?
7. THE MODEL TO HELP
YOU MAP WHERE YOU ARE
& WHAT TO DO NEXT
8. 8
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).
WHEN DO WE BUILD A GROWTH TEAM?
9. 9
SEED / STARTUP GROWTH / BUILD GROWTH / ESTABLISHED EXPANSION MAINTAIN / MATURITY
TRACTION
MARKETING
GROWTH
MARKETING
BRAND RESPONSE
MARKETING
BRAND CORPORATE
MARKETING
SMALL GROWTH TEAM
+ AGILE
EXPAND GROWTH TEAM
+ SYSTEMS, PROCESSES
EXPAND TEAM +
SYSTEMS, PROCESSES,
CAMPAIGNS
GROWTH
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
10. 10
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.
WHEN DO WE BUILD A GROWTH TEAM?
11. 11
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?
WHEN DO WE BUILD A GROWTH TEAM?
14. 14
• 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.
WHEN DO WE BUILD A GROWTH TEAM?
15. 15
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.
WHEN DO WE BUILD A GROWTH TEAM?
17. 17
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?
WHEN DO WE BUILD A GROWTH TEAM?
18. 18
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?
WHEN DO WE BUILD A GROWTH TEAM?
19. 19
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?”
WHEN DO WE BUILD A GROWTH TEAM?
20. 20
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.
WHEN DO WE BUILD A GROWTH TEAM?
21. What “phase” is
your business in?
What are you
trying to accomplish?
What are your
existing capabilities?
21
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:
WHEN DO WE BUILD A GROWTH TEAM?
01 0302
22. 22
In this Phase, you need:
Traction Marketing and small Growth Team
You 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)
23. 23
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)
24. 24
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.)
25. 25
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.)
26. 26
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.)
27. 27
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
29. 29
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
30. 30
Growth Marketer / Hacker
Growth Team
Fewer Contractors
Data Analyst
Channel Specialist
Systems
Capture Learning
Process for Running Experiments
Marketing
Growth Marketing Focused
Double-down on Key Channels
Experiments
Messaging
Funnels
GROWTH / BUILD PHASE
Channel Specialist
31. 31
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
32. 32
Data Analyst
Growth Team
Growth Marketer/Hacker
Channel Specialist(s)
Brand Specialist
Systems
Capture Learning
Process for Running Experiments
Process for Campaigns
Marketing
Brand Response Marketing Focused
Additional Branding & Experience
Blend with Growth
Marketing FundamentalsExperiments
Channels
Messaging
Funnels
BUILD / ESTABLISHED PHASE
33. 33
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
34. EXPANSION PHASE
34
Data Analyst
Growth Team
Growth Marketer/Hacker
Channel Specialist(s)
Contractors (as needed)
Systems
Capture Learning
Process for Running Experiments
Process for Campaigns
Marketing
Growth Marketing Focused
Dedicated to Particular Campaigns
Additional Branding & ExperienceExperiments
Channels
Messaging
Funnels
35. 35
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
36. 36
Data Analyst
Dedicated Growth Team
MAINTAIN / MATURITY PHASE
Growth Marketer/Hacker
Channel Specialist(s)
Contractors (as needed)
Systems
Capture Learning
Process for Running Experiments
Process for Campaigns
Marketing
Brand Corporate Marketing Focused Specific Growth Marketing Strategies
& Tactics for Campaigns and Expansion
Experiments
Channels
Messaging
Funnels
Platforms
38. 38
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.
WHEN DO WE BUILD A GROWTH TEAM?