A rising star, English student, Hugo discussed growth loops and how they are overtaking the funnel system. He suggested reforge.com website on the article to read and discuss which gave a great insight into the topic. Today’s blog is an introduction into the subject to analyze potential usage in startup ventures.
At this stage it is necessary to understand the concept that businesses encounter, especially new-to-market commercial methods that require much marketing expertise, conventional Go-to-Market (GTM) marketing campaigns as well as Go-to-Community (GTC), plenty of word-of-mouth, public relations, and speaking about ways to develop win-win situations for company growth. The interesting point here is growth loops can be used for growth-related campaigns in the general sense of the term.
The question is how can these loops be incorporated in the firms marketing strategy. How to implement this into expanding the business is a question every CEO, marketer, sales executive, and product developer recurringly makes to turn a venture into a high volume while profitable business. Though today’s blog gives a better background into the sales funnel, growth loops vow to be responsible for a superior flowing generation of new business.
A sales funnel is the process prospects go through to become customers, and has been used for decades. During each stage of the funnel, it takes buyers one step closer to making purchase decisions. A well-planned sales funnel will define the actions a business needs to take in order to push prospects to the next stage. Once through the funnel the argument is that there is no sustainable system in place that can be consistent in its effectiveness.
The buying process then is described as a funnel because it starts by attracting many people, before narrowing them down until there are only those left who buy new products. This drop off is inevitable, as it is not possible to convert everyone. However, effective funnels will turn the highest number of people possible into buyers. Businesses should continually optimize and experiment with their funnel to make it more effective.
A modern approach funnel system for new clients should be as follows:
1. Acquisition = New Consumer (client) of product/service
2. Activation = Customer begins usage
3. Retention = Satisfied client of product/service
4. Referral = New potential client recommendations
5. Revenue = New business
There are many software programs available on the market today. Some boast as to having the best sales funnel packages for sales results. To check the effectiveness of these systems and e-commerce operations 10 of the best are discussed. From these studies we are searching for self-generating formats that facilitate growth sustainability.
In addition to the funneling system, some experts reflect growth loops are designed for sustainable and compounding growth. Growth Loops are closed systems designed to ensure every input goes through a series of pre-defined steps to generate an output. That output is then reinvested as an input, and since this is a closed-loop system, the process repeats itself.
The fact that the funnel system is effective will not deter us from pursuing the growth loop’s theme to analyze in more depth to see if an enhanced delivery solution is in our midst. The next blog about growth loops will cover more information.
Take care!
Prof. Carl Boniface
Vocabulary builder:
Loops (n) = rings, circles, coils, hoops, rounds, discs, spheres
Funnel (n) = a funnel is a cone shaped item to pour oil into a car or motorcycle sump. It can also be compared to a coffee filter. Water is tipped into it at the wider end and then passed through a coffee filter which comes out at its narrower end.
Go-to-Market (GTM) = strategy is a plan that details how an organization can engage with customers to convince them to buy their product or service and to gain a competitive advantage.
Go-to-Community (GTC) = strategy is a plan that details how an organization can engage with customers via discussion groups, closed communities, and online participants to help awareness and understanding of market trends with an underlying objective to spread the word and gain trust which ultimately improves business opportunities.
Recurringly (adv) = Adverb of the verb to recur. (adj) recurrent, periodic, frequent, repeated, habitual, repetitive, cyclical, regular, (ant) finished
Prospects (n) = 1. the possibility or likelihood of some future event occurring. “There was no prospect of resolving the matter.” 2. a person regarded as likely to succeed or as a potential customer, client, etc. “The prospect is almost certain to join the company.”
Vow (n) = promise, oath, pledge, guarantee, declaration, undertaking
Pursuing (v) = following, chasing, hunting, trailing, tracking
Midst (n) = hub, core, focus, heart, center, middle