Growth Loop

What is a Growth Loop?

A growth loop is a marketing strategy in which customers are incentivized to participate in a company’s user acquisition efforts, usually by promoting said company’s products to their social circles. Many app marketers have recently adopted the growth loop strategy.

The 4 Stages of the Mobile App Marketing Growth Loop

There are four stages in the mobile app marketing growth loop:

1. Download: A new user downloads an app.
2. Play: The user experiences the app and wants extra value.
3. Share: The user invites their social circle to try the app in exchange for extra value.
4. Expand: A portion of the people the user invites to the app accept their offer and download it.

Growth Loop Strategy vs Funnel Strategy

The growth loop strategy replaces the standard funnel strategy, which most marketers are familiar with. While the funnel strategy has its merits, it doesn’t prioritize future growth. The growth loop strategy does by harnessing user influence to generate new users.

Read more about Growth Loops here.