Sticky engine of growth - Deepstash

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Sticky engine of growth

Sticky engine of growth

Applies to products designed to attract and retain customers for the long term. They rely on high retention rates to grow.

Metrics to track: Growth rate, Churn rate, Retention

Rule of growth: Growth rate > Churn rate. The larger the difference, the faster the product grows.

Focus on: Improving the product to make it more engaging and to drive retention.

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Paid engine of growth

Paid engine of growth

Applies to startups that acquire users through ads or sales, make a profit on each new user, and then reinvest the revenue to acquire more users for larger profits. They rely on getting more money from a user than they paid to get him.

Metrics to track: CAC, LTV

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Viral engine of growth

Viral engine of growth

Applies to products designed to spread rapidly from one person to another. They rely on existing users to bring in new users.

This is different than word-of-mouth growth because customers are not intentionally promoting the product. Instead, they are promoting the product by using it.

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Growth engines

Growth engines

A growth engine is a process that startups use to achieve sustainable growth i.e. growth where new customers come from the actions of past customers.

There are three growth engines, each with its own set of metrics:

  1. Sticky engine of grow...

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More like this

Paid engine of growth

Paid engine of growth

Applies to startups that acquire users through ads or sales, make a profit on each new user, and then reinvest the revenue to acquire more users for larger profits. They rely on getting more money from a user than they paid to get him.

Metrics to track: CAC, LTV

2. Viral engine of growth.

  • It's called the viral loop, and its speed is determined by the viral rate. 
  • The higher this coefficient, the faster the product will gain popularity. 
  • The viral ratio shows how many more customers each new customer can bring. 
  • Each of his friends is also a potential c...

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