In this article i simply mentioned 3 engines of growth concept of Eric Ries, author of “The Lean Startup”. Sometimes we only focus on one, and sometimes our business allows us to implement more than one… Now lets divide every single one of them.
3 Engines of Growth
- Sticky Engine of Growth
- Viral Engine of Growth
- Paid Engine of Growth
1) Sticky Engine of Growth
If you have a business model that focusses on repeat customers that means you are mostly focused on sticky growth engine. To ensure growth, you should focus on assuring that customers receive the service continuously.
Subscription-based services (Netflix, Spotify, GoDaddy), SAAS projects or consumable products are using this growth method.
The key is the customer loyalty!
2) Viral Engine of Growth
Known as word of mouth growth. If you have a product or service that people love or a product that requires engagement, this engine will start work for you. Alike social media or peer to peer share platforms.
Facebook, PayPal, and Tupperware are good examples of who use this method.
The key is getting more customer referrals!
3) Paid Engine of Growth
Most startups focus on paid growth by giving advertising on social media or traditional media channels(television, billboards, magazines). But if you are focusing paid engine, you need to calculate the cost of acquisition for every customer obtainer by ads.
The key is keeping the costs to lower than incomes!
What is your thought about engines of growth?