Engines of Growth

From knowledgebase
Revision as of 08:14, 25 August 2020 by Dirkjan (talk | contribs) (Created page with "The Lean Startup defines three engines of growth: * '''The Sticky Engine of Growth''' ** The sticky engine of growth depend highy on customer loyalty and...")
(diff) ← Older revision | Latest revision (diff) | Newer revision → (diff)
Jump to navigation Jump to search

The Lean Startup defines three engines of growth:

  • The Sticky Engine of Growth
    • The sticky engine of growth depend highy on customer loyalty and brand. Critical for this growth engine is that the rate of new Acquisition rate must be higher than the Churn rate.
  • The Viral Engine of Growth
    • The viral engine of growth is power by a feedback loop that can be quantified. This is called the Viral loop and its speed is defined by the Viral coefficient.
    • The Viral coefficient measures how many new customers will use a product as a consequence of each customer who signs up. This must be greater than one otherwise it will not be viral
  • The Paid Engine of Growth
    • The paid engine of growth grows linear as a function of revenue and cost per customer. This is a very common model