2024 KuppingerCole Leadership Compass recognizes LoginRadius as Overall Leader.
You have probably heard the quote, "nothing worth having comes easy". When it comes to cultivating and expanding your employee base, you should realize that it won't just happen upon the ideal team. As the director of your company and personnel, you are expected to know how to assemble high-performing product teams.
No recipe can assure an A-grade workforce. When it comes to creating high-performing teams, you must get creative. With commitment, forbearance, and a little direction, you'll be off to formulating high-performing squads in no time who can take the core product and your business to new heights. Such teams facilitate productivity, foster business development and expansion, and stimulate business earnings. They are also known as growth teams.
What is a Growth Team
A Growth team is made of people that are highly-proficient, versatile, data-driven, and courageous. Growth teams enhance the importance of and client base for a product that is already operating through quick, data-informed experimentation.
Most companies have different specialized departments for sales, products, and marketing. Much of the advantage of a growth team is having the charter to jump around between these committees and fill voids. They are made up of growth managers, engineers, data scientists, product managers, marketing teams, designers, and data analysts who constantly observe and try potential experiments to see if they work.
For example, while consumer support squads want to be the best at settling issues that transpire, growth teams speculate about how to formulate a user experience and execute tools and technology that motivates would-be clients to convert. Such teams play a pivotal role in ensuring a company is consistently edging towards growth and profits.
A CBInsights survey shows 23% of startups fail because they didn’t have the right team running the business. Therefore, having the right team to drive growth in a company, especially startups, is vital.
The Need for Growth Teams in Startups
There are endless benefits of growth teams as such teams do numerous things to drive growth. A special obligation that often falls on a company is developing fresh channels that help in obtaining clients. The growth team can deliver other advantages such as furnishing knowledge and awareness and helping to substantiate product-market fit.
Growth teams focus on how to heighten the ratio of consumer acquisition, retention, and income by optimizing commodities and formulating fresh market and marketing channels. They conduct data-driven and qualitative research and move toward objectives, such as web traffic conversion or stimulating product signups through a coalition.
Some of these innovations may look insignificant but have a substantial influence. Uber, for example, saw a rise in new consumers when it solely modified the "share" button on its landing page in the app to "free rides," which indicated to users the reward they would receive for bringing in new riders.
The basic component of a growth team is a growth experiment. Growth experiments can differ in length and can be as short as a few days. Altering the layout of a landing page to infer which aspects steer greater traffic — often called A/B testing — could be deemed a growth experiment. This is something marketing teams often do to find the perfect strategy.
Across growth teams, "10x, not 10%" is a popular mantra, but it's crucial to understand that while these teams strive for remarkable outcomes, they frequently make a distinction through gradual, cumulative modifications that compound to create significant growth.
So a growth team needs to concentrate on a series of 5 percent developments that sum up to great profits altogether. Because they experiment with and impact a wide spectrum of business divisions (not simply marketing), these teams are required to deliver on and measure against results. They are generally held responsible through internal agreements that act as informal pacts.
With the benefits of having such teams clear, you must be wondering, "how to create a growth team?" Well, here you go.
5 Steps to Building a Growth Team
Step 1: Lay the right foundation.
When trying to build a growth team, there are four critical factors to contemplate:
- Your startup's growth stage
The first thing that you need to evaluate is that at what stage your startup is at. It would be better if your startup has already found favourable distribution channels where you can endorse your product or service. At this phase where your marketing endeavours are geared toward looking for techniques and schemes to improve your user acquisition, activation, and retention undertakings.
- Your objectives
You should have a particular objective that you want to accomplish through growth hacking.
- Your key metrics
Through these, your growth team will learn which metric to concentrate on so that your startup will get the most benefit from it.
- Backing from main stakeholders
Your co-founders and investors must be on board with you in creating a growth team for your startup so that further growth does not remain stunted due to any kind of hindrance from their side.
Step 2: Choose your growth team model.
There are two types of growth team models:-
- Independent
In this model, various crew members function independently from each other. As such, each team member can prioritize their tasks and resources to enable your startup to reach the destination.
There are two editions of this growth team model. The first one organizes your growth team associates based on workflows. The second organizes the team based on metrics.
The disadvantage of such a model is that there are high chances of rising friction between the members (as all of them work autonomously), resulting in a clash of opinions and conflicts.
- Functional
In the Functional model, each of the partners of your growth team directly reports to a functioning executive.
Step 3: Hire the right people for your growth team.
The** growth **team consists of skilled people who are well trained, devoted, and knowledgeable in their respective fields. They should be multifaceted and flexible according to the requirements of your startup.
You should have an efficient and competent team comprising of:
- A leader or growth manager
- Product manager
- Software engineers or developers
- Marketers
- Data analysts
- Designers
Step 4: Create a culture conducive to growth.
Despite disparities, the most triumphant** **teams share a common culture, like that of a company or group. The most productive teams adapt and settle in various skill sets, knowledge levels, and professional backgrounds. Remember to facilitate communication among your workers. Communication is vital to ensuring your breadwinners complete their obligations and collaborate effectively.
Step 5: Managing and growing your team.
As your startup starts to scale, there is a temptation to employ more people on board to help with the rising workload. That encompasses your growth team as well. Startups need to begin expanding their growth team, utilizing the 1:5 ratio. That implies that for every five new workers you hire, one should be a new growth team colleague.
You should make sure you have sufficient people on your growth and non-growth teams to provide the required data and its evaluation on time. There should be a healthy and happy environment for work so that there is no tension and distrust among colleagues. Communication, teamwork and feasible goals are an integral part of an adept growth team.
Key Takeaways
To sum up;
The fundamental functions of the growth team are:
- Reviewing and prioritizing ideas
- Growth experiments
- Evaluating test outcomes, iterating, re-testing
- Sharing the information and data understood with the company and other team members.
- Finding out the schemes and channels for sustainable growth.
The importance of growth teams is more than the startup founders assume, and therefore, it should have the best members with similar ideologies and zeal to work. The members should be product-focused, innovative, and analytical. As more startups are commencing to enforce growth hacking policies to exponentially heighten their customer acquisition and revenue, creating a growth team has now become one of their top prerogatives.
Whether you are a business firm, one of many portfolio corporations, a startup, or a small enterprise, you need to concentrate on creating a professional growth team if your product has already hit the market.
