Engines of Growth Metrics

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Eric Ries is an entrepreneur and author who is known for developing the concept of the “lean startup,” which is a method for launching and growing new businesses that emphasizes continuous iteration and testing in order to quickly identify and build products that customers want. In his book “The Lean Startup,” Ries identifies three “engines of growth” that can help startups achieve rapid and sustainable growth:

  1. The “Stickiness Engine” is focused on retaining and engaging customers over time. This engine relies on creating products or services that are so useful, convenient, or enjoyable that customers are unwilling to switch to a competitor.
  2. The “Virality Engine” is focused on leveraging word-of-mouth and social networks to drive rapid growth. This engine relies on creating products or services that are designed to be easily shared with others, resulting in a exponential increase in the number of users.
  3. The “Paid Engine” is focused on using paid marketing channels, such as advertising, to drive new users to the product. This engine relies on carefully targeting advertising to the right audience and measuring the return on investment from each marketing campaign.

References

 Lean Analytics - by Alistair Croll, Benjamin Yoskovitz
Use Data to Build a Better Startup Faster
Measure What Matters - by John Doerr
How Google, Bono, and the Gates Foundation Rock the World with OKRs