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A Summary of

Growth Loops are the New Funnels

by
Brian Balfour, Casey Winters, Kevin Kwok, Andrew Chen
Reforge
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The most important question your team should be able to answer

  • How does your product grow?
    • Everyone has a different answer 
    • The answer is only one piece of the puzzle
    • The answer talks about the output of money but not inputs of usage 
  • If not everyone has the same answer then there can be internal team friction

Funnels are not the answer

  • Funnels create strategic and functional silos
  • Funnels operate in one direction

Growth loops

  • Closed systems where the inputs through some process generates more of an output that can be reinvested in the input 
  • Loops provide sustainable compounding growth
  • Loops are more defensible 

Loops change everything

  • You approach growth from acquisition, product, and monetization questions
  • You make investments that are compounding 
  • You organize your team to work together towards optimizing the loop You need to translate loops into quantitative growth models to make strategic bets and drive your metrics roadmap
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