What is Feature Driven Growth?
Have you ever seen a promotion or reward like this and wondered the mechanics behind such an offer?
Feature Driven Growth is a method of using digital features to attract and grow a user base. This approach is a highly effective B2C marketing tactic often used by direct-to-consumer companies within FinTech, dining & entertainment, retail, and messaging/social networking.
Some benefits include:
📈 Promotes organic growth which develops a stronger sense of brand and community, as opposed to other salesy forms of paid, intent or direct search advertising efforts.
🧑🤝🧑 Inexpensive way to leverage an existing users’ network to attract customers of a similar demographic & interest.
🔎 Because this is a form of digital marketing, analytics of the feature can be easily tracked and monitored, tested, and altered for optimal conversion.
👍🏽 A creative way to use marketing spend and guarantee some level of conversion. For example, if a company allocates $50,000 for referral downloads in the “Invite friends, Earn $20 example”, they can guarantee that the money will at least get the user to:
Download the app onto the users phone and execute onboarding tutorial
Require the user to enter some form of registration information
Require them to take some action on the app such as spending $5 themselves.
Even better, if you require that the user spend $5 to get $5, you are guaranteeing a conversion even further down that conversion funnel or customer acquisition journey, which provides your company more data about the product and also more opportunities to convince the user that your product or service is worth using. Many users likely get exited about the offer and never execute on it within the timeline but keep the app on their phone anyway. This tactic has even more upside to the company as these users that stay on the app have a minimal cost of acquisition.
Growth services are one of many services Infinum provides our digital partners. To learn more about our integrated digital strategy, design, and development process, reach out!
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