How growth loop framework drives your business growth

The traditional way of using the sales funnel to drive growth for your business has become obsolete. The reason is because it’s missing out on the compounding effect of effective growth strategies. 

Allow us to fill you in. 

A funnel works from top to bottom, so you need to put more money and effort in at the top just to get a narrow end of paying customers. Also none of your efforts are reinvested to acquire more clients. 

These days, companies are using the growth loop framework – a closed system that focuses on compounding growth. This is how the fastest growing products acquire new customers. 

To understand the compounding nature of growth, think of it like a hockey stick. It is the principle of making small, smart everyday choices that eventually lead to exponential growth. 

So what are growth loops really?

Growth loops are closed systems where the inputs, through some process, generate more of an output that can be reinvested in the input. 

It turns your business into a machine that feeds itself. All of your acquisition efforts would reinvest themselves into more output for you. This results in one customer referring three on average.

Loops are the new funnels

• Input 

First thing first, in order to acquire new customers, you need to generate brand awareness. It’s an act of winning someone else's attention. 

You must start with a strong brand that differentiates itself from business rivals. A strong brand helps you build trust and loyalty in the long run. 

Then present your brand and key message in a real and relatable way, take people on your journey and share who you are.

Once you have captured their attention, don’t waste it. You need to ensure every interaction delivers a positive impact and moves customers to the next level. 

• Action 

Have an onboarding strategy that motivates customers to act faster than they normally do and a long-term communication strategy to invest time and money in making your existing customers happy. 

You’re looking for a long-term relationship with each customer because retention drives acquisition (word-of-mouth referrals) and monetisation