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How businesses grow fast through growth loops
Growth loops are closed systems where the inputs, through some process, generate more of an output that can be reinvested in the input.
This framework works to generate compounding growth by reinvesting the output of one cycle as input of the next cycle - and the loop goes on.
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Things to keep in mind when designing growth loops
- Product designed to be share-worthy, keep brand names upfront
- Post statistics and engagement should be visible (e.g in Deepstash - the number of reads, likes, and stashes are visible).
- Be aware there's minimum threshold and ceiling to every growth channel.
- Create supe...
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Inorganic loops
Refferal loops - users receive benefits when sharing about the product
- Incentivized referral - in the form of money, discounted products, premium access, increased usage limit (eg: Airbnb, Amazon, Dropbox)
- Non-incentivized referral - users sha...
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Organic loops
User generated content
- Users generate content and content is indexed in google or other search platforms (Wikipedia, Reddit, Pinterest)
- Users generate content that can elevate their status and share it to their circles (eg: Quora, Medium)
- Users create c...
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Superimposing loops
Building multiple loops within a product (e.g engagement loop superimposed with content creation loop in the case of YouTube)
Content personalization through the recommended videos feature keeps the users engaged and it encourages the consumption o...
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Organic vs organic loop
Attracting new users may be built in through the core product flow (organic) or gained through incentives (inorganic).
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The compounding effect
In financial transactions, when you deposit a sum of money in the bank, that principal grows an interest and that interest thereafter in the next period becomes part of the principal, thus generating higher interest earned in the succeeding periods.
Similarly, in the context of growing user...
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The GAP (growth, awareness, progress) approach focuses on three pillars:
- Growth by Consistency (your inputs). Growth happens through a series of small and consistent incremental steps, not monumental overnight strides.
- Awareness by Metacogniti...
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