Why is Growth Important?
A business’s growth is essential to its survival. To grow, businesses need to market themselves effectively. A growth marketing agency is a company that specializes in helping businesses grow by marketing them effectively.
Working with a growth marketing agency has many benefits. One of the most important is that they have the experience and expertise necessary to help your business grow. They know how to reach the right audience and get that audience interested in your offer.
Growth marketing agencies can help companies to achieve rapid growth by implementing dynamic, data-driven strategies. However, hiring a growth marketing agency comes with its own set of challenges and advantages. Businesses must consider cost, expertise, and alignment with specific needs to select the right agency to provide specialized strategies to accelerate growth.
Growth is vital to a business for several reasons.
First, growth shows that the business is doing well and expanding. This can attract new customers and investors, leading to further growth.
Second, growth can help businesses to become more efficient.
Finally, growth can help businesses diversify their products and services, protecting them from economic downturns.
Survival
Growth is essential to a business's survival because it allows it to expand its operations and increase its market share. Without growth, a company will eventually stagnate and decline.
Therefore, businesses must always strive to grow to survive and thrive.
There are many ways to measure growth, but some of the most important indicators include revenue growth, profit growth, and employee count growth.
If a business is not growing in these areas, likely, it is not doing well overall.
Strategy
Businesses can use many strategies to promote growth. Hiring a growth marketing agency can be crucial in implementing these growth strategies. Some common methods include expanding into new markets, launching new products or services, acquiring other companies, and increasing marketing efforts.
However, businesses must consider which growth strategy is right for them, as not all strategies will be successful for all businesses. A comprehensive growth marketing strategy is crucial for achieving maximum impact and success, as it enhances user engagement, retention, and overall business growth through innovative, research-driven approaches.
Revenue Growth
Revenue growth is essential for a business for several reasons.
First, without revenue growth, a business will eventually stagnate and decline. A company must reinvest to stay competitive and keep up with customer demand.
Second, revenue growth allows a business to expand its operations and hire more staff, which can help it survive during tough economic times.
Finally, investors and analysts use revenue growth as a measure of success, so businesses must strive for consistent growth. Effective marketing campaigns can drive revenue growth by employing comprehensive strategies that include performance optimization, targeted outreach, and cohesive creative assets.
Revenue Sustainability
There are many ways to grow revenue, but it's important that businesses focus on sustainable methods that will produce long-term results. For example, rather than resorting to aggressive marketing tactics that might alienate potential customers, businesses should focus on providing a great product or service that meets customer needs.
This will increase their chances of keeping existing customers and attracting new ones, ultimately leading to sustained revenue growth.
Increased Market Share
By definition, market share is the portion of the total market controlled by a company. It measures how much of the pie your company has compared to everyone else. And in today's competitive business landscape, having a large slice of the pie is more important than ever.
There are a few key reasons why increased market share is so important to business growth.
- It allows businesses to expand their operations and increase their profitability.
- It allows businesses to enter new markets and reach new customers.
- It helps businesses build brand awareness and equity.
Better Control of the Market
Smaller businesses have less power than industry leaders to influence and control market activity, while larger businesses have greater control over pricing.
For a time, large businesses may set low prices to eliminate competition. They may also set the price high enough to encourage other businesses to do the same.
Increased Profits
Expanding your business and achieving higher sales is one way to be more profitable.
Business growth results from increased output, which produces goods and services. They will sell this output to increase sales. Revenue will increase even if prices remain the same if the company grows its sales. Thus, in a growing business, revenues will increase even without an increase in prices.
The company should control its costs to increase profits and expand (increase sales revenue). They can also increase profits by reducing costs or keeping them lower than before the expansion.
Businesses that grow may also see increased profits if they can maintain their marginal cost structure during the growth.
Economies of Scale
Economies of scale are cost advantages that can occur when a company increases its production scale and becomes more efficient, decreasing cost per unit.
There are many benefits to economies of scale for growing businesses. The most important benefit is that it allows growing corporations to lower their costs and pass those savings on to consumers, giving them an edge over their competition. What are the benefits of economies of scale?
- Lower long-term unit cost - Internal economies of scale offer many benefits, including lower costs, allowing businesses to be more competitive in global markets.
- Increased profits - Scale economies lead to higher profits. This generates a higher return on capital investment and allows businesses to speed up growth.
- Greater business scale - A larger business is more stable and less susceptible to external threats, like hostile takeovers. It has a positive impact on the company's share price and its ability to raise financing.
How is Business Growth Measured?
There are four fundamental ways to evaluate whether your business is growing:
Evaluate Your Customer Base to Determine if it Has Grown
You should be looking for more customers and better-quality customers. You should aim to have a customer base that generates more profit. Therefore, look to build customer loyalty and gain repeat customers.
- Customer lifetime value (CLV) is often used to measure customer value. It is calculated by multiplying the average sales price by the number of repeat transactions and then multiplying this by the average retention period of each customer.
- Businesses should keep track of the CLV calculation results and work to improve them.
- We can measure these variables using customer surveys, purchase analysis, or immediate feedback (“Is it your first time shopping with us?”).
Calculate Revenue Growth
The easiest way to measure company growth over time is with revenue growth. We usually measure growth using the compounded annual growth rate (CAGR). This calculation is especially useful when summing up growth over longer periods, such as 5, 10, or 20 years.
- We calculate CAGR as follows: CAGR = final and starting values times 1, divided by the number of periods fewer than 1. Or (FV/SV1)1/n-1.
- Here, the beginning value is revenue for the first year of the range to be calculated, and the ending value is revenue for the last year.
- Learn how to Calculate the Compounded Annual Growth Rate so you can keep abreast of this critical measure of business growth.
Incorporating data analysis into your marketing efforts is crucial for optimizing strategies and driving measurable revenue growth.
Calculate Workforce Growth
Track new hires and compare the numbers with those of previous years. As a growing company grows, it should continue to hire more employees. You can express this number as a percentage by dividing the total number of employees at the start of the year by the number of new hires.
Evaluate the Growth of Your Market Share
Market share refers to a company's share of an industry's total value. Calculate this by dividing the company's total revenues by the industry's total revenues over a period and then dividing this result by the company's revenue over the same period, which can be a quarter of a year or several years.
- You can determine growth by looking at the company's market share over several periods.
- If you're researching a company with revenues of $1 billion and $150 million in 2020 (15% of the market) and $170 million in 2021 (17% of the market), your market share has increased by 2 percent over the past year.
What is an Asymmetric Business Model?
Asymmetric business models cross industries by forcing profits to move from one sector to another. They are based on the economics of complements.
Let's look at how complements work. A complement in economics is a product that depends on or requires another product.
Here are some examples.
Ink cartridges are essential for home printers to function. Cartridges can complement printers and vice versa.
To work, cars need gasoline as fuel. Gas is an essential component of vehicles and vice versa.
According to economics, complements are more popular if the complement's value is lower. If you lower the value of printers (their price), more people will purchase printers and more cartridges. Like the above, more people will buy cars if you lower the gas value.
Let's look at how companies can grow their businesses to understand the concept better.
- Diversification means expanding into new markets and investing profits in that market. The goal is to make that market a source of profits.
- Growing asymmetrically means expanding into new markets, intending to profit in the core market but not in a vast new market.
The demand for the product increases when the complement becomes commoditized.
Let's see how companies incorporate complements into their business models.
We will use three examples to illustrate the economics of complements.
Apple creates value by making it simple for software developers to create millions of apps. It has also made apps more affordable by making it simple for anyone to create and distribute apps and encouraging developers to compete on price.
These apps drive users to buy iPhones, iPads, Apple TVs, and Apple Watches. Apps' lower value drives demand for their core product, devices.
Google's Android operating system adds value to the market by making it simple for tablet and handset makers to create smart devices. Android's open-source version is available at no cost to handset manufacturers.
Google has effectively driven the demand for its core advertising business by commoditizing Android.
Amazon makes hardware like Kindle Fire tablets or Echo devices affordable, thus creating value. These devices are then bundled and locked to Amazon's e-commerce services. Amazon effectively drives demand for its core e-commerce services by commoditizing the Kindle Fire and Echo.
The Asymmetric business model comprises three major components.
- A company finds a complementary industry.
- Commoditizing a complement creates value.
- The package complements the core products of the company to generate profits.
How is Growth Marketing Different From Traditional Marketing?
Considering how growth marketing differs from other marketing functions and domains is useful. Hiring a growth marketing agency can help businesses achieve their goals by providing specialized strategies and expertise.
Traditional marketing attempts to convert leads into customers as quickly as possible. Growth marketing, however, aims to guide your audience through every stage of the marketing funnel and ultimately create brand ambassadors.
Growth marketing focuses on retention, while traditional marketing focuses primarily on acquisition. Growth marketing is customer-centric, whereas traditional marketing is company-centric.
This type of marketing uses practices to hypothesize, test, and optimize. Search engine optimization (SEO), paid advertisement, content marketing, A/B testing, conversion rate optimization (CRO), email marketing, and social media are the tools that allow brands to collect data and make improvements.
Brands need data-driven insights to make product-focused decisions. Thus, they can avoid deciding based on intuitions or opinions.
Growth marketing differs from the product or other growth functions because it controls most channels and uses language that gets immediate responses.
A Strategic Lens That Links to Business Outcomes
Most growth marketing teams target key business results, such as revenue, user growth, and ROI. Growth marketers must develop a strategy for driving customer and user metrics across the entire customer lifecycle, even more so than in other marketing or product domains.
Top growth marketing agencies can help achieve these key business outcomes by leveraging their strategic capabilities and unique approaches.
Data-Driven Approach
Growth marketers use various data sources, including customer and user information, product research, and third-party insights, to guide their approach.
Cross-functional Collaboration with Growth Partners
With dedicated product and engineering support, growth marketers are typically your team's most technologically enabled marketers. Their success depends on a strong partnership with engineering, product, and design.
Growth marketing cannot optimize new channels for scale by itself. It is a common mistake not to pair growth marketing and growth product teams to achieve product-channel fit across new channels. With strong alignment, growth marketing can optimize and scale the channels.
To understand how growth marketing works for your product, it is important to understand your growth model.
Growth Marketing Is One of Three Key Marketing Domains
Growth marketing is one of the three main marketing domains that improve the core product offering for consumers.
Let's examine how growth marketing differs from brand marketing and product marketing.
Different marketing domains target different audiences with varying degrees of proximity to the product. These levels of proximity are akin to the concentric circles around an archery target.
Brand Marketing
Brand marketing focuses primarily on reaching the outermost ring of customers and bringing them closer to the center. These are people who are not familiar with your product or your category. Growth marketing allows customers to be attracted by brand marketing because it increases awareness and intent.
Growth Marketing
Growth marketing brings customers from the intermediate rings into the bullseye (acquisition) and keeps them there (retention).
Product Marketing
Product marketing ensures that existing users, who are the target audience, understand the products and the features. This is especially important when you introduce new products to the market. Product marketers must also keep their ears open to see how users might change as they gain new customers.
Pillars of Growth Marketing
Testing
Scientific discovery is only possible if we can test a hypothesis multiple times. Marketing is a complex field that requires you to test a variety of strategies to determine the best strategy.
These tests are most often conducted as an A/B test. They provide valuable consumer behavior, design efficiency, and brand recognition data. A common phrase in growth marketing is “fail fast.” This means that testing can identify what isn't working, fix it, or edit it again and retest.
Scalability
Growth marketing is popular because it produces sustainable results that scale. Scalability is possible when marketing approaches are scientific. These granular data can help to identify knowledge gaps and areas that need to be replicated, which are beneficial for scaling. Companies can use these results to increase their capital, people, technology, and processes.
Trackability
Analytics is ultimately the currency of growth marketing. It allows businesses to make informed decisions that propel them forward, which is the fundamental difference between traditional and growth marketing. For example, testing landing pages provides actionable information that can be replicated at scale. By not running tests that can be tracked in real-time, brands misuse billions every year.
What is a Growth Marketing Agency?
A growth marketing agency is more than just a service provider; it is a strategic partner dedicated to helping businesses achieve measurable and sustainable growth.
These agencies leverage expertise, data analysis, and ongoing optimization to expand a company’s reach, acquire new customers, and increase revenue. Unlike traditional marketing agencies, growth marketing agencies focus on developing and implementing customized marketing strategies that align with a business’s specific goals and objectives.
By continuously analyzing data and refining their approaches, they ensure that their clients experience consistent and sustainable growth.
The Role of a Growth Marketing Manager
A Growth Marketing Manager is crucial in driving the implementation of growth tactics and fostering agile organizations.
They go beyond traditional marketing approaches by emphasizing data-driven strategies and creative solutions. These managers are responsible for aligning cross-functional teams within a company to focus on scalable strategies that yield high returns on investment.
By ensuring that growth tactics are effectively employed across various industries, Growth Marketing Managers play a vital role in achieving the business’s overall growth objectives and delivering significant benefits to business owners.
The 4 Stages of Growth Marketing
The journey of growth marketing can be broken down into four distinct stages:
- Product-Market Fit: This stage involves identifying and understanding the target audience's needs. Growth marketers collaborate with engineering and automation teams to develop a product or service that meets these needs, ensuring a solid product-market fit.
- Growth Hacking: At this stage, growth marketers align their marketing and sales strategies with the preferences and habits of their target audience. This alignment helps them effectively promote and sell products and services.
- Viral Marketing: Here, digital marketers focus on facilitating prospects' and customers' finding and sharing information about the product or service. They assess whether the product is worthy of discussion and sharing.
- Analytics: In the final stage, growth hackers use analytics to identify conversion rates and key metrics. This data-driven approach helps refine strategies and ensure continuous improvement.
How Growth Marketing Agencies Stay Up-to-Date with Industry Trends
Growth marketing agencies stay ahead by investing in ongoing education and professional development.
They attend industry conferences, network with other professionals, and stay informed on the latest research and case studies. This commitment to continuous learning allows them to provide their clients with cutting-edge strategies and tactics that drive results.
By staying up-to-date with industry trends and best practices, growth marketing agencies ensure that their clients benefit from the most effective and innovative approaches.
What are the Different Types of Agencies?
Growth Agencies
Growth agencies assist businesses in achieving their revenue growth goals by following a core strategy that includes marketing, sales enablement, and technology. When hiring a growth marketing agency, it is crucial to consider factors such as cost, expertise, and alignment with your specific needs.
Growth marketing agencies have a greater influence than traditional digital marketing agencies. They can influence product and service development and marketing KPIs. Because they use hard data to make important decisions, there is a push toward bridging the ROI analysis gaps before any marketing collateral is published.
This may appeal to you if you are familiar with lean startup principles.
It is easiest to describe a growth agency by comparing it with more well-known service providers such as technology, marketing, and sales agencies. This comparison will show how growth agencies can merge a fragmented industry through partnerships and central leadership.
A growth agency can help you make better decisions and focus on your growth goals holistically. This will allow you to build on your successes and identify and eliminate problems.
Marketing Agencies
While marketing agencies will pitch many ways to help you grow your business, they primarily focus on marketing KPIs. This is because they believe that digital marketing is a process. They need to generate KPIs to attribute to their deliverables so they can stay on retainer.
They want your success but don't have the power to make it happen.
Sales Agencies
Sales agencies will use similar KPIs, but they focus more on sales. Sales agencies that are more involved address direct KPIs, such as
- Made calls
- Set up appointments
- Opportunities generated
Leadership and sales enablement agencies can help you achieve success with your existing systems and teams by:
- Sales coaching and training
- Sales enablement
- Alignment of sales and marketing
Technology Agencies
Technology agencies enable businesses to operate at their maximum efficiency. Technology tools are often critical to businesses that want to scale and grow but are also neglected.
These agencies update and modernize customer management systems. They want to automate as many things as possible and will try to influence the decision-making process to ensure that more, rather than less, technology is adopted.
- CRM - Sales management software (Salesforce, HubSpot, Zoho. SAP, etc.)
- Marketing Automation and Analytics (HubSpot Marketo Pardot, etc.)
- Service - record-keeping & customer service (SAP, Oracle, etc.)
- Accounting - Billing automation and bookkeeping (QuickBooks or Xero)
This is a great place to start if you want to scale your company. This will help you decide where to spend your money and when to reinvest.
What are Some Growth Marketing Goals and Metrics?
Pirate Metrics (AAARRR)
Growth marketing can be applied to any area of your business. This approach is based on the AAARRR (or Pirate Metrics) framework, which covers all major marketing components: acquisition, awareness, activation revenue, referral, and retention.
Awareness
Awareness is a brand-building effort to educate prospects about your solution and brand. This could include paid campaigns, social media outreach, and SEO-optimized news.
Over the past years, digital advertising has been a tool for marketers to test their messaging and its impact on website traffic. As the digital advertising landscape becomes more complex and competitive, growth marketing strategies must be more targeted and result-driven.
Marketers can test multiple messages on the same audience to determine which generates more engagement. Marketers increasingly use “brand generation” tactics, such as paid campaigns with signature content offers, to drive brand awareness and conversion.
Social platforms, such as LinkedIn, offer tremendous opportunities for expansion and awareness. Social media should be a key component of growth marketing. Growth marketing teams have a business-critical opportunity to experiment with LinkedIn audience targeting, which can help them drive customer intimacy and awareness.
Acquisition
Acquisition is the act of generating leads and gaining new customers. This can be done through gated content or chatbots.
Slack, for example, acquires users via an email collection form. This use case is a core component of any growth strategy and shows the need to test conversion optimization to maximize form submissions.
Marketers need to consider frequent iteration in this area. This includes everything from messaging to button orientation to colors and form strategy. In these experiments, marketers use constant iteration to drive conversion increases.
In 2023, content syndication and video will play an important role in the acquisition process. Marketers are moving away from webinars and shifting to shorter-form content. Your growth marketing efforts should include a significant increase in content syndication.
Activation
User activation is the process of getting people to use the service or product they have purchased as often as possible. This area includes customer onboarding activities.
Revenue teams and marketers are increasingly focusing on activation. Facebook discovered that users who added seven friends in the first ten days of their account were more likely to return and engage with the platform.
Customer closeness initiatives can play an important role in growth marketing strategies through customer data and analytics and the promotion of “user-generated content. "
Activation plays an essential role in growth marketing and will probably be a foundational component for demand generation in the future.
Revenue
Revenue refers to all actions that generate revenue for a company, such as customers buying a product, signing up for a service contract, or upgrading their product or service.
Growth marketers can use pricing strategies to address revenue-related metrics. This includes how prices are displayed on the pricing page. They might also consider upselling strategies, such as sending messages to users near their plan's limit.
Growth marketers might employ a pricing page, such as the one used by Drift, and then experiment with displaying the various tiers.
Revenue analytics will become an even more important component of growth marketing in 2023. Data enrichment tools allow marketers to discover new customer insights and improve their marketing opportunities.
Retention
Subscription companies must ensure customer retention.
This was once too costly and time-consuming, but the technology and pricing have come down quickly. These technologies give you greater insight into customer opportunities and help you design customer outreach and engagement strategies that create a personalized customer experience.
Referral
The idea is for people to be so satisfied with your products or services that they will refer you to other businesses. Marketers can create referral programs to encourage this.
Tesla provides supercharger miles for those who refer others. A growth marketer might experiment with promotional or incentive methods to increase referrals.
Why Hire a Growth Marketing Agency?
They Bring a Diverse, Big-Picture Team
You can hire a growth agency to help you get a complete view of your company, work with you to determine the best course of action and delegate execution tasks.
To Learn How to Allocate and Reallocate Resources
Some agencies charge a percentage for a channel, known as performance marketing agencies. However, an agency that charges a retainer fee allows you to be more creative and aligned with your objectives. As a founder, you know well that “adept” is what you are looking for.
A team of agency professionals includes both channel experts and big-picture strategists. Let's say you work with your growth team to create your growth marketing strategy that tests Google, LinkedIn, and Facebook ads.
After a few weeks of optimizing and testing, you quickly realize LinkedIn is not yielding a sustainable customer acquisition cost (CAC). An agency specializing in performance marketing might recommend reallocating LinkedIn spending to Facebook, whereas a retainer-based agency may focus more on realigning the overall strategy.
You Need a Team that's "Been Around The Block" to Solve Problems
A diverse and experienced agency team brings a wealth of resources, an extensive network, and a long record of experience.
Growth marketing professionals will tell you that growth isn't linear. There is no set path to growth. Facebook can seem like a certain thing. But when an unpredictable twist like iOS 14 occurs, a team of social advertising experts can make a run for it.
They can talk to other experts in the network, look into their “tricks,” and solve problems faster than a generalist.
Choosing the Right Growth Marketing Agency
Selecting the right growth marketing agency is crucial for your business’s success. It’s essential to find a team that understands your specific product, whether it’s a SaaS startup or an eCommerce company, and can meet your needs at your current growth stage.
Consider factors such as the agency’s expertise, experience, and reputation in the industry. Additionally, evaluate their approach to data analysis, marketing strategy, and customer acquisition. A well-chosen growth marketing agency will be a valuable partner in driving your business’s growth and achieving your long-term objectives.
Wrapping Things Up
There are many agencies out there. All have their strengths and weaknesses, and you should do your homework before selecting a partner to help you grow your business. While digital marketing was the day's flavor for many years, growth agencies are gaining favor for their metrics-driven focus on results.
You are not looking for a “growth hacking agency.” Growth hacking is a set of tips and techniques for getting quick results, often at the expense of longer-term strategic thinking.
A growth team with strong performance marketing, content marketing, digital marketing, marketing technology, and other skill sets is superior to a growth-hacking marketing agency.
Suppose you are looking for rapid and sustainable growth driven by customer acquisition and a growth marketing framework. In that case, a growth team is more likely to get you there than a traditional marketing agency.
Frequently Asked Questions: Growth Marketing Agency: Why You Need One
What is a growth marketing agency?
A growth marketing agency focuses on creating and executing strategies that drive scalable and sustainable growth for businesses. Unlike traditional marketing agencies, growth marketing agencies integrate multiple channels—such as SEO, content marketing, paid advertising, and data analysis—to optimize the customer journey and generate measurable results.
How is growth marketing different from traditional marketing?
Traditional marketing often focuses on brand awareness and broad campaigns, whereas growth marketing is more data-driven and performance-focused. Growth marketing strategies are designed to rapidly test, iterate, and scale based on real-time results, ensuring that every tactic contributes to your overall business growth.
Do I need a growth marketing agency if I already have a marketing team?
Even with a strong in-house team, a growth marketing agency can bring specialized expertise, tools, and fresh perspectives that may be missing. They can also help execute advanced tactics, scale your efforts more efficiently, and provide the external objectivity necessary to uncover new growth opportunities.
How do I know if my business needs a growth marketing agency?
If you’re struggling to scale, facing stagnating growth, or want to explore new channels and strategies for expansion, a growth marketing agency can help. Additionally, businesses looking to optimize every stage of their customer journey—from acquisition to retention—can benefit greatly from working with a growth-focused partner.
What results can I expect from a growth marketing agency?
While results vary depending on your specific goals and industry, you can typically expect improvements in lead generation, customer acquisition, conversion rates, and overall revenue. A growth marketing agency will work with you to set clear KPIs and consistently refine strategies to meet those targets.
What industries benefit the most from growth marketing?
Growth marketing is versatile and can be applied to virtually any industry. It’s especially beneficial for businesses in fast-moving industries like technology, e-commerce, SaaS, and startups, where rapid scaling and data-driven decision-making are critical. However, traditional industries looking to modernize their marketing efforts can also see significant gains by adopting growth marketing strategies.
How does a growth marketing agency measure success?
A growth marketing agency uses key performance indicators (KPIs) tailored to your specific goals, such as customer acquisition cost (CAC), lifetime value (LTV), conversion rates, and return on ad spend (ROAS). These metrics are continuously monitored and optimized to ensure you get the highest ROI from every marketing effort.
What is the typical process for working with a growth marketing agency?
The process usually begins with an in-depth discovery phase, during which the agency learns about your business goals, challenges, and target audience. They then create a tailored strategy that includes setting measurable goals, testing various channels, and refining the approach based on performance data. Regular reporting and collaboration ensure you’re always aligned and making data-driven decisions to maximize growth.
Ready to Unlock Your Business Growth Potential?
Partnering with a growth marketing agency is the next step if you want to accelerate your business’s growth with data-driven strategies.
At Asymmetric Marketing, we specialize in helping companies like yours scale with innovative marketing solutions tailored to your unique needs.
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About the author
Mark A. Hope is the co-founder and Partner at Asymmetric Marketing, an innovative agency dedicated to creating high-performance sales and marketing systems, campaigns, processes, and strategies tailored for small businesses. With extensive experience spanning various industries, Asymmetric Marketing excels in delivering customized solutions that drive growth and success. If you’re looking to implement the strategies discussed in this article or need expert guidance on enhancing your marketing efforts, Mark is here to help. Contact him at 608-410-4450 or via email at mark.hope@asymmetric.pro.