How Gusto.com Achieved Unicorn Status Through Organic Growth

Gusto.com is a leading HR platform for payroll, benefits, and more ¹. It has achieved remarkable success in the competitive landscape of HR SaaS. With a valuation exceeding $1 billion and a customer base of over 200,000 businesses ², Gusto's growth trajectory is a testament to its effective organic growth strategies. This article delves into the key factors that contributed to Gusto's organic traffic growth, examines the paid and social media tools it employed, and analyzes the influence of Google core updates on its organic performance.

Organic Growth Strategies

Gusto's organic growth can be attributed to a multifaceted approach that prioritizes customer satisfaction, content excellence, and strategic partnerships. Let's explore the key elements of their strategy:

Prioritizing Customer Experience and Referrals

Gusto recognizes the importance of customer satisfaction in driving organic growth. By providing a seamless and user-friendly platform, Gusto has cultivated a loyal customer base that actively promotes its services through word-of-mouth referrals³. Gusto places significant emphasis on Net Promoter Score (NPS) as a metric to gauge the sustainability of its organic growth across various customer segments⁴. This focus on customer feedback helps them ensure they are consistently delivering a positive experience that encourages referrals.

To further encourage referrals, Gusto has integrated referral mechanisms into its platform, making it easy for users to share their positive experiences with others⁴. Moreover, Gusto recognizes the importance of employee advocacy in driving organic growth. Satisfied employees often recommend Gusto to their friends at other companies or when they move on to new roles⁴. This internal referral network further amplifies Gusto's reach and contributes to its organic customer acquisition.

Content Marketing and SEO

Gusto has invested heavily in content marketing to educate and engage its target audience. Its content strategy focuses on creating valuable resources that address the needs and pain points of small business owners⁴. Gusto's blog, Framework, covers a wide range of topics relevant to payroll, HR, benefits, and company culture⁵. By consistently producing high-quality content optimized for search engines, Gusto has successfully attracted organic traffic and established itself as a thought leader in the HR space⁶.

Initially, Gusto faced challenges in generating organic traffic despite investing in blog content. To overcome this, they adopted a data-driven approach, utilizing SEO software to identify relevant keywords with significant search volume⁷. This shift towards keyword research and optimization enabled them to create content that aligned with user search intent, resulting in improved organic visibility and traffic growth.

Gusto also leverages Parse.ly, an analytics tool that provides insights into content performance⁸. By analyzing data on user engagement and content consumption, Gusto can identify what resonates with their audience and optimize their content strategy accordingly. This data-driven approach ensures that their content remains relevant, valuable, and effective in attracting and engaging users.

Furthermore, Gusto's content strategy includes offering free tools and calculators that were previously paid products⁹. This approach provides immediate value to users, positions Gusto as a helpful resource, and encourages further engagement with their platform and services.

Gusto's commitment to understanding its audience and competitors is evident in its marketing plan. They actively track competitors' marketing strategies, including new campaigns and channels, to stay ahead of the curve and adapt their own approach as needed¹⁰. This competitive intelligence helps them identify opportunities and refine their content and SEO strategies to maintain a strong online presence.

Key Insight: Gusto's content strategy demonstrates the effectiveness of creating resources that directly address the specific needs and pain points of their target audience, establishing them as a trusted source of information⁴.

Strategic Partnerships

Gusto has formed strategic partnerships with various organizations to expand its reach and tap into new customer segments. One notable partnership is with accounting professionals. Gusto provides accountants with a dedicated platform, Gusto Pro, which enables them to efficiently manage their clients' payroll and HR needs⁶. This partnership has not only generated a significant source of referrals but has also strengthened Gusto's position in the market.

Unconventional PR and Brand Awareness

In addition to traditional marketing efforts, Gusto has employed unconventional PR tactics to raise brand awareness and connect with its audience. One notable example is their RV tour across the US, where the CEO and team members visited customers in 10 states⁴. This initiative not only allowed them to engage directly with their users but also generated positive publicity and strengthened customer relationships.

Paid Media Tools

While organic growth has been a primary focus for Gusto, the company has also strategically utilized paid media tools to complement its efforts. Here are some of the paid media tools employed by Gusto:

Google Ads and Facebook Ads

Gusto has leveraged Google Ads and Facebook Ads to reach a wider audience and drive targeted traffic to its website⁹. By creating compelling ad copy and strategically targeting specific demographics, Gusto has effectively increased brand visibility and generated leads⁹.

Targeted Advertising Campaigns

Gusto has implemented targeted advertising campaigns to address specific customer segments and promote its various offerings. For example, it launched a campaign featuring comedic actress Kristen Schaal as an HR administrator to connect with HR professionals and showcase the benefits of Gusto's platform⁴. Recognizing that their target audience within small businesses is often limited to a single person responsible for payroll and HR, Gusto utilizes paid media to target different employee roles within those businesses⁹. This approach ensures that their message reaches a broader range of potential users and decision-makers.

Social Media Tools

Gusto has effectively utilized social media platforms to engage with its audience and build brand awareness. Here are some of the social media tools and strategies employed by Gusto:

Hootsuite

Gusto has integrated Hootsuite, a social media management platform, to streamline its social media activities¹¹. Hootsuite enables Gusto to efficiently manage multiple social media accounts, schedule posts, and track performance.

Engaging Content and Influencer Marketing

Gusto creates engaging social media content that resonates with its target audience. It utilizes a variety of formats, including videos, images, and articles, to maintain a dynamic and interactive social media presence¹². Gusto also collaborates with influencers to expand its reach and tap into new customer networks¹³.

Own and Amplify Campaign

Gusto employs a content repurposing strategy called the "Own and Amplify Campaign." ¹⁴ This involves creating valuable content, such as blog posts, and amplifying its reach by distributing it across various platforms, including email and social media. This approach ensures consistent messaging and maximizes content visibility.

Gusto's social media strategy, with its focus on high-quality content and multi-platform distribution, contributes to their overall online presence and helps them navigate the impact of Google's algorithm changes.

Impact of Google Core Updates

Google core updates are significant changes to Google's search algorithms that aim to improve the overall quality and relevance of search results. While these updates can have a substantial impact on website rankings, Gusto has consistently maintained a strong organic presence¹⁵. This can be attributed to Gusto's commitment to creating high-quality, user-centric content that aligns with Google's guidelines¹⁶. By prioritizing content excellence and adhering to SEO best practices, Gusto has successfully navigated the challenges posed by Google core updates and sustained its organic growth.

High-Intent Keywords and Conversions

High-intent keywords are search terms that indicate a strong likelihood of conversion. These keywords often reflect a user's intent to purchase a product or service. While specific conversion rates for Gusto's high-intent keywords are not available, it's evident that the company has effectively targeted these keywords to drive conversions¹⁷. Some examples of high-intent keywords relevant to Gusto's offerings include:

By creating landing pages and content optimized for these keywords, Gusto has successfully captured leads and converted them into customers.

Conclusion

Gusto's journey to becoming a unicorn is a testament to its effective organic growth strategies. By prioritizing customer satisfaction, content excellence, and strategic partnerships, Gusto has built a thriving business that continues to attract and retain customers. While paid and social media tools have played a supporting role, Gusto's organic growth has been the driving force behind its success. Furthermore, Gusto's ability to adapt to Google core updates and effectively target high-intent keywords has further solidified its position as a leader in the HR SaaS market.

Gusto's success highlights the importance of a holistic approach to organic growth, combining exceptional customer experience, valuable content marketing, strategic partnerships, and data-driven decision-making³. Their journey exemplifies how a customer-centric approach, coupled with a commitment to providing valuable content and adapting to the evolving digital landscape, can lead to sustainable organic growth and market leadership.

Works cited

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What are the key factors behind Gusto's organic growth?

Gusto's organic growth is driven by a multifaceted strategy that emphasizes customer satisfaction, content excellence, and strategic partnerships. By focusing on these areas, Gusto has successfully cultivated a loyal customer base and expanded its reach.

How does Gusto prioritize customer experience to drive growth?

Gusto enhances customer experience by providing a seamless, user-friendly platform and integrating referral mechanisms. This approach encourages word-of-mouth referrals and leverages employee advocacy to expand its customer base.

What role does content marketing play in Gusto's strategy?

Content marketing is central to Gusto's strategy, focusing on creating valuable resources that address small business owners' needs. By optimizing content for search engines and using data-driven insights, Gusto attracts organic traffic and establishes itself as a thought leader.

How does Gusto utilize strategic partnerships?

Gusto forms strategic partnerships, such as with accounting professionals, to expand its reach and tap into new customer segments. These partnerships provide a significant source of referrals and strengthen Gusto's market position.

What unconventional PR tactics has Gusto employed?

Gusto has used unconventional PR tactics like an RV tour across the US to engage directly with customers and generate positive publicity, enhancing brand awareness and customer relationships.

How does Gusto leverage paid media tools?

Gusto uses paid media tools like Google Ads and Facebook Ads to reach a wider audience and drive targeted traffic. Targeted advertising campaigns help promote specific offerings and connect with different customer segments.

What social media strategies does Gusto employ?

Gusto uses social media platforms to engage with its audience, employing tools like Hootsuite for management and collaborating with influencers to expand its reach. The "Own and Amplify Campaign" ensures consistent messaging across platforms.

How has Gusto adapted to Google core updates?

Gusto maintains a strong organic presence by creating high-quality, user-centric content that aligns with Google's guidelines. This approach helps them navigate the challenges posed by Google core updates.

How does Gusto target high-intent keywords?

Gusto targets high-intent keywords by creating optimized landing pages and content, capturing leads, and converting them into customers. This strategy focuses on keywords that indicate a strong likelihood of conversion.