Learnings

Product Growth Flywheel

Image Aniket AmbekarLeave a comment

Reference:

https://www.appcues.com/blog/product-led-growth-metrics

Summary:

  • A product growth flywheel is similar to a marketplace flywheel that can drive the growth of the product
  • This flywheel has 4 main stages through which the users of the product transition
    • Activate
    • Adopt
    • Adore
    • Advocate
  • Each of these stages triggers the next stage leading to a virtuous cycle of growth. The sooner we can activate the users, the faster they will start adopting it leading them to like the product and be an advocate so that new users can be acquired easily
  • Activate
    • This is the first phase of the product where the users try to find the value of the product
    • It is important that users can quickly get activated through the defined key actions within the product that lead them to realise the value of the product
    • These users are mainly the users who are evaluating your product and are beginners and hence it is essential to get these users to their “Aha” moment which is the value they are seeking from the product
    • Depending on the number of key actions to realise the value, the experience needs to be broken into multiple key actions that take the user closer to the value 
    • Main KPIs: Time to Value, %Activated Users
  • Adopt
    • This is the second phase of the product where the users have completed the key action and realised the value of the product
    • It is important at this stage that the users continue to use the product on a regular basis to get the value of the product, hence retention becomes number #1 priority
    • We need to have a closer look at overall adoption of the features within the product and what features are driving the product adoption thus helping understand the core value of the product for the users
    • Main KPIs: Feature adoption rate, Product adoption rate, Retention rate, Net revenue churn rate
  • Adore and Advocate
    • In this phase of the flywheel, we must ensure that the satisfaction index is kept high all the time for the users and provide enough opportunities to the users to advertise your product on your behalf
    • Happy users will inadvertently reduce the acquisition costs of new users
    • Main KPIs: CSAT, NPS, Virality, Referral growth rate

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