Viral Growth Loops
Review Growth Loops
Content Growth Loops
Paid Ads Growth Loops
Growth Loops can be thought of as cyclicalfunnels. The major difference between these two systems lies in the fact that the loop is self-feeding; there is a cumulative and exponential effect. This is not the case with the funnel system, in which you always have to put more in to hope to get more out.
There are many Growth loops:
This list is not exhaustive. The loops are based on different strategies and do not necessarily have the same objectives (acquisition or retention of traffic for example).
However, their operating principle remains the same. They each include several steps. These steps fit into each other, forming a virtuous circle. Each step will "feed" the next one, thus generating exponential growth.
One of the big advantages of the loop is that all the steps can be automated!
Setting up a growth loop always requires the same 6 growth elements. They are grouped 3 by 3. On one side, there is the growth engine, the sales funnel and the retention strategies. On the other hand, there is conversion, strategy and process.
The design of your growth engine is based on a deep understanding of your business model. What really creates value in your business? Who are the customer profiles that buy your products or services? What are the acquisition channels that lead them to the act of purchase?
A classic Web marketing or digital communication agency will not be able to help you in these areas. Only a Growth agency has the know-how to set up campaigns, identify your acquisition channels, generate qualified traffic, set up tests, new levers, and obtain growth-oriented results.
As we have said, the growth loop is made up of several stages.
The first of these is none other than the entry into the loop. It is from this entry that the output is generated in a closed, self-perpetuating system.
Entering the loop is done through different traffic acquisition strategies. This can be done through search engine optimization (SEO), by ranking your company on keywords specific to your business on search engines.
It can also be done through Google Ads or Social Media Ads campaigns. By setting up these campaigns correctly, they will mainly reach your target audience, which will guarantee a better conversion. Also with SEO, a user who enters a query specific to your business will be a more mature prospect than a user who randomly lands on your site.
Within the loop, (automatic) data processing systems are created to facilitate analysis. These systems provide a complete view of the prospect's behavior and conversion rates within the loop.
They highlight the various obstacles and areas for improvement in the strategy. Filters are placed to sort through the data. They allow you to differentiate leads according to their level of maturity.
A certain technical level is required for a relevant and precise implementation, but the return on investment is largely worth it.
In a growth loop, all feedback is relevant, whether positive or negative. For example, if a lead enters the loop, but does not complete the buying process, the system can determine the causes. The machinery is then optimized accordingly.
As for the good results, they allow to feed the loop more and more. For example, it is possible to allocate 30% of profits to the management of advertising campaigns. These campaigns then bring in more qualified leads, which in turn generate more profits. The virtuous circle comes to life; the loop grows exponentially.
If you are not familiar with the loop concept, these explanations may seem a bit vague. To better understand things, we can use the concrete example of Tripadvisor.
The meteoric growth of the review platform is no accident. It is the result of the implementation of a growth loop specific to the company's model: the review Growth loop (review-based growth loop). It works as follows:
The loop is then closed! The different systems perpetuate the cycle.
A Growth Loop is not a unique and intangible system that everyone operates in the same way. It is more of a concept that can be adapted to the needs, objectives and functioning of each company. If you are the founder of a company, you can create a growth loop specific to your business.
Growth does not happen automatically. For this, the implementation of systems like the growth loop is necessary. The undeniable advantage of the Growth Loop is that it allows for a very precise human analysis of the data in order to put in place the best possible corrections.
Indeed, the creation of a Growth loop adapted to your growth will start with a reflection phase. This phase will involve experts capable of defining the right automation to be designed. This purely human vision of the problem ensures that you start in the right direction by creating a loop that meets the right needs.
Upstream, the analysis and processing of the data will be done, again, by a human. To facilitate the task, the data will be sorted and classified using different filters. This analysis work will allow to bring the best adapted correction.
The whole process is then part of a continuous improvement approach. Once the system is in place, it is not left as is. A constant work of improvement allows to grow, again and again.
Obviously, designing a custom loop is a very complex task. This work sometimes requires an outside view of the company, but also a solid knowledge of growth marketing. Growth Agence can do this for you. Thanks to our expertise, we are able to create systems that adapt to each need. This allows you to focus your efforts on your expertise without worrying about development strategies. We will take care of initiating a consistent and sustainable growth for your company.