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Are Growth Loops so powerful for Growth Hacking?


king - February 18, 2019 - 0 comments

Growth Loops instead of the AARRR funnel

Growth Loops are increasingly mentioned as an alternative to the usual AARRR funnel.

The world’s leading experts actively promote the idea of growth loops in startup development and Growth Hacking: Andrew Chen (Andreessen Horowitz, Uber), Brian Balfour (Reforge, HubSpot), Casey Winters (Pinterest).

In their opinion, the funnel was good, but it does not show how fast-growing products develop. This means that new, more advanced tools are needed.

A growth loop is a closed system in which input at one stage generates results at the other. And these results can be reinvested at the initial stage. Click To Tweet

There are two main types of loops: attraction loops and engagement loops, each of which is divided into subspecies.

Attraction through user-generated content and SEO.

Pinterest

1. Registration or authorization;
2. Activation with relevant content;
3. Create your content or add/mark an existing one;
4. Distribution of the best content in search engines;
5. A new user has found interesting content in search and switched to the product.

Attraction through virality

Survey Monkey

1. Register as a new user;
2. The user creates a survey;
3. The user sends the survey to others;
4. At the end of each survey, the service is landed;
5. A new user logs on to a landlord to create his or her survey.

Attracting through paid advertising

Uber

1. Registration in the service;
2. The user makes a paid trip;
3. The received money is invested in advertising;
4. The new user goes through advertising.

It is essential for the attraction loops to use stable channels (SEO, ASO, Paid Ads) and the possibilities of platforms (iOS, Android, Web).

Involvement through personalization

Netflix

1. The user has subscribed to the series, evaluated or added the movie to his favorites;
2. New content (series, seasons, videos) is available;
3. The user is notified via reminders or tape;
4. The user watched and evaluated the content.

Involvement through social activities

Instagram

1. The user creates content;
2. Other users view content;
3. There are reactions (likes, comments);
4. Notifications are sent to the content creator.

The advantages of Growth Loops over AARRR Funnel

Visibility
It’s easy to see what exactly is generating growth in a product.

Security
The complex of interrelated elements is more difficult to copy than own tactics.

Durability
The hinges allow us to look at growth from a strategic perspective.

Organizational structure
Hinges help to build teams around sustainable processes, helping to strengthen communication and understanding between company structures.

The ability to design growth loops is only the first step

The main tools of engagement loops are mailing lists and notifications. Click To Tweet.

But they should encourage involvement in the product through organic interest, rather than manipulate its attention.

They then need to be translated into a quantitative model to maintain the link between the different stages, identify priorities, make decisions based on data, set goals and manage performance.

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