3 types of Growth for Startups

Value and growth are the only two things you are constantly focused on a startup. The Value hypothesis tests if your product actually is valuable to your customers. The Growth hypotheses indicate how users will find your product or service.

All startups want to be scalable and get global customer with high conversion rates. At the beginning the process can be very difficult, even when you have validated an idea, your growth hypotheses can stop your success.

There are 3 kinds of growing:

A sticky product

This is my favorite. You must focus on an extraordinary customer experience; you have to create a real relationship between them and your value proposition. It is really important to apply the cohort analysis to test retention rates. Once they love your product, focus on repeated users, who will buy more and more.

A viral product

Is really complicated for a bad product to become viral, but if you have and awesome user experience and a good referral program, you can deliver a viral product. Focus on customer touch-points, the referral program process and the referral conversion rate. Remember, virality is all about ease to share.

Paid

Validate your acquisition, activation, retention and revenue model to have a CLV (Customer Lifetime Value) greater than your CAC (Cost to acquire customers). Take care of the payback time and the sustainability of the model.

Growth is not about only good luck, it needs a real strategy.

Any other ideas?

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s