How Grammarly Climbed Its Way to 30 Million Daily Users Worldwide

ROI Overload Business, Tech & Finance Newsletter

  
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Here is your weekly email with a business growth case study, plus some things I’m working on, reading, watching and thinking about!


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📈 Case Study: How Grammarly Climbed Its Way to 30 Million Daily Users Worldwide

You don't have to be big to make an impact.

This is what the story of Grammarly, an AI-powered writing assistant, proved. It is one of the most popular and successful startups in Silicon Valley, with over 30 million daily users worldwide. It's safe to say that this company has been wildly successful!

Although other well-known applications have an integrated spell and grammar check, none seem to be providing a complete and comprehensive service to users. The people behind Grammarly saw this technical issue and built the company from the ground up solely with that idea.

How did Grammarly grow from being a small startup to such an international sensation? Here are the things that you should know.

Humble Beginnings

Max Lytvyn, Alex Shevchenko, and Dmytro Lider started Grammarly at the University of California-Berkeley in 2009. Their goal was to create a device that would help people with poor grammar become better writers and excel more in their careers.

Grammarly is not your average startup company. It did not start as a freemium business as we all know now. Rather, it was monetized backward.

The journey wasn't an easy one. It took Grammarly six years to make its way out of the garage and into the mainstream market.

At the time, the team received $110 million in investments for research, development, and marketing campaigns designed to attract customers worldwide.

It was well worth it.

How the Business Prospered 

While Grammarly had its fair share of struggles, it did have some key strategies that helped make its business successful. 

Let’s tackle each of the variables which contributed to the company’s success. 

Freemium Business Model 

One strategy was to use a freemium business model and offer free services as well as paid ones. By doing this, they could appeal to those who are serious about writing and casual users. 

Since many people see grammar-checking software as something you can only benefit from if you're in school or at work, using a freemium business model helps ease the market into having such software available for them on demand.

Growth Over Revenue Mindset 

Another essential strategy Grammarly uses is by focusing on growth over revenue when necessary. The company invested a lot of money in research and development, as well as marketing campaigns. 

Even though they didn't have steady revenue at the time, Grammarly still chose to invest heavily into their business because it was more critical for them to grow quickly than worry about making immediate profit.

User-Driven Functionality

Grammarly values the feedback of customers. There are many different features that Grammarly provides for its users, and they improve these by getting their feedback. There is an integrated option in the application for the user to indicate if the correction is valid. 

Personalization 

Every user has an individual style and communication goals. With this, Grammarly focused its software on providing personalization. 

Grammarly uses Search and language statistics to provide personalized content for the users. The company has employed a data-driven approach to identify which language is most appropriate in different contexts. This, along with their ability to search from various sources of information, make Grammarly more reliable than other grammar applications on the market today!

Marketing Strategies

Marketing is a vital part of a business. Here are the three main marketing strategies which helped Grammarly boost its presence worldwide:

Social Media Marketing

Grammarly uses social media platforms like Facebook, Twitter, Pinterest, and LinkedIn. They used these platforms for generating revenue by showing relevant ads on user feeds based on their interests.

The ads posted helped increase user engagement with the software since they were in the format of jokes, tips, and comics which shows that language is fun.

Product Positioning

Grammarly focused on its audience by understanding their needs. They realized that there is no need to create a premium product for people who ignore grammar and spelling mistakes in the first place. 

They also understood that only those with deep pockets would use a premium product if they provided a paid service. By positioning itself as a freemium business model company, Grammarly could attract anyone looking for help regarding writing errors which helped increase revenue over time through enhanced user engagement and referral programs!

Email Marketing

To further appeal to new users, Grammarly used email marketing. They sent out targeted emails to people who had already visited the site or purchased an account. 

The company has rules for when and how often they send emails since most companies have restrictions due to legalities and spamming concerns.

Key Takeaways From Grammarly's Success

Incorporate SMART Goals  - Grammarly has set goals that they aim to achieve every year. These goals have been beneficial in the progress of the business and will continue to remain vital as time goes on.

Use a freemium business model to attract new users - This not only helps you build up revenue but also allows your brand to grow in the long run.

Be open with feedback - Customers love when companies ask them questions about how they feel and what changes they would like to see. Customers feel listened to, and their feedback is invaluable.

Be social - The more active you are online, the better chance you have of growing your business at lightning speed! Grammarly took advantage of all sorts of free marketing, including social posts across all mediums and blogging, by making sure everything about them was available across the internet.

Final Thoughts

Grammarly has created and then dominated the market for easily accessible, one-stop-shop writing tools and is continuing doing so.

The company’s success story is inspiring because it shows that you don't need years of experience or money behind you for your product or idea to become successful… just good ideas, determination, and hard work.


💻 SaaS Of The Week: Pigeon

One of the most useful chrome extensions I’ve ever discovered, giving your regular gmail inbox a complete arsenal of tools you’d normally have to purchase through various SaaS companies. Pigeon (@trypigeon) is a one click install chrome extension which was just acquired by Andrew Kamphey (@Kamphey), after being a power user of the software for the past two years.

CRM. Templates. Email Tracking. Mail Merge. Automation. Multi-Sequence Campaigns.

You can do it all, in Gmail… with one extension.


🎧 Things You Should Listen To: How to Grow a Twitter Audience With Sam Kelly, Founder of Inspire Network & Twitter Authority

This week I sat down with Samantha Kelley (@tweetinggoddess) who is a Twitter influencer and founder of the Woman’s Inspire Network (@WomensInspireIE)

Known as the “Tweeting Goddess”, with a following of over 53k engaged followers, and she lives and breathes Twitter. We spoke about business Twitter Strategy, how to grow your audience, build a community, monetize your Twitter and deal with trolls. If you’ve been struggling with Twitter, this would be a good episode to check out.

If you just want some social media, or community building tips, you’ll probably also get some insight from this episode.


📚 Things You Should Read: The 1% Rule: How to Fall in Love with the Process and Achieve Your Wildest Dreams by Tommy Baker

The 1% Rule was designed to answer three core questions:

1. Why do some people seem to achieve massive success in everything they do.

2. What separates those who get excited and inspired for a season, a quarter, a month or a week — and those who are consistently on fire?

3. What are the core principles, mindsets, habits and rituals of those who execute ruthlessly

This is a great book that puts together resources and ideas that someone who is a doer can use to bridge the gap between wishing and doing. It’s a light, but useful read focusing on helping you hold yourself accountable to action whatever steps you need to take to get things done. High performers generally want to do everything and anything. This book will help hold you accountable to do the specific tasks that will really move the needle.


🧠 Scott’s Thoughts

1. “Popular opinion (that isn't discussed enough). Mental health is as important as physical health.”

(Tweet This)

2. “If you don’t take control of your brand, you’re always going to be subject to peoples impressions of you--which means you have to work twice as hard. Control it from the start.”

(Tweet This)

3. “Everything gets a whole lot easier once you just start.”

(Tweet This)


💡 Other Thoughts

1. On Integrity

"The chief lesson I have learned in a long life is that the only way you can make a man trustworthy is by trusting him; and the surest way to make him untrustworthy is to distrust him and show your distrust."

— Henry L. Stimson

(Tweet This)

2. On Perseverance

"You gotta grow, you gotta learn by your mistakes; You gotta die a little everyday just to try to stay awake; When you believe there's no mountain you can climb; And if you get it wrong you'll get it right next time."

— Gerry Rafferty

(Tweet This)


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