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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
Rule of growth: LTV > CAC. The larger the difference, the faster the growth.
Focus on: Increasing LTV and decreasing CAC
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99 reads
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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 fa...
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139 reads
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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101 reads
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:
- Sticky engine of grow...
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206 reads
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Other curated ideas on this topic:
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 fa...
The Platform Planks Of Google
Google has many planks. This keeps users on its platform. This includes planks such as mobile, maps and streaming video. They continue to add more products.
As Amazon, Apple and Facebook did, Google has grown by moving sideways. They also monetized the platform with ads; additionally, the...
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