Ask a marketer, “How does your product grow?”
They'll reply: “Ads, affiliates, sales, social, etc.”
They’re describing top-down growth. Your classic funnel. Pour more in. Get more out.
• Acquiring new customers from scratch is hard and costly
• Funnels flow in only one direction
• Growth is linear
The best marketers think less about funnels. More about loops.
Loops feed themselves. The actions of one user create an output that creates a new user.
Look at Peleton's loop for example:
Here are other examples:
Some products improve with more users. So there's a personal incentive to invite new users.
Some products have financial incentives to invite new users.
Some products are so good, people just like talking about them.
Some products leverage users’ content to grow their own organic traffic.
Some products attract new users simply by being noticeable. Lime's bright green is not a coincidence.
Some products incentivize users to promote their content for them.
Some products grow by embedding themselves on other platforms.
To succeed in eCommerce, businesses must learn how to predict Customer Acquisition Cost (CAC), which is the cost of acquiring new customers.
The $1 a day strategy, popularized by digital marketing expert Dennis Yu, has become one of the most effective and affordable ways to reach your target audience on social media platforms through video ads.
The Jobs-to-be-Done (JTBD) theory asserts that customers don't buy products; they hire them to get a job done.