Build a flywheel for business growth, form a business enhancement loop, and make business growth no longer difficult

Now traffic growth is becoming more and more difficult, customer acquisition costs are getting higher and higher, and business growth is also slow.

When an enterprise is developing in a positive direction, the traffic growth must be stable and rapid, the customer acquisition cost is also getting lower and lower, and the business growth is steady or even rapid, otherwise it is going on a wrong path.

However, many enterprises are unable to achieve this goal. The cost of customer acquisition is getting lower and lower. As enterprises become larger and larger, their efficiency will inevitably start to decrease. Scale and efficiency are natural opposites. Efficiency will inevitably start to decline, and the cost of customer acquisition will soar.

Many factors, such as the complexity and implementation of processes, the executive power of personnel, the ceiling of a single channel, and the uncertainty of new channels, will lead to the fact that both scale and efficiency cannot be achieved.

Then how to solve the conflict between scale and efficiency, so as to reduce customer acquisition costs and the rapid growth of traffic and business.

The answer is to build business Growth flywheel

Business growth=traffic × conversion rate × repurchase rate × sharing rate × sharing conversion rate (new customers brought by sharing communication × payment amount × consumption times).

Before talking about flywheel growth, let's talk about flywheel effect.

Flywheel effect refers to that in order to make the stationary flywheel rotate, you must use a lot of force at the beginning. You have to push it again and again, and it takes a lot of effort every time. But every effort will not be wasted. The flywheel will rotate faster and faster. Even if you don't spend much effort later, the flywheel will rotate quickly.

The core essence of flywheel is compound interest, which is driven by one ring and linked by another.

That is to say, "cause" can drive "effect", and "effect" can drive "cause" in turn, forming an enhancement circuit.

Building a growth flywheel means building an enhanced loop for business growth, so as to form a growth loop.

How to build a growth flywheel?

Step 1 : Identify business impacts Growing Key elements.

Try to collect and brainstorm at least 10 key elements,

Such as traffic growth, product value User experience , herd mentality, user grass planting, conversion rate, repurchase rate, sharing rate, sharing conversion rate.

Step 2 : Analyze the causal relationship between elements.

Causality of key elements, such as product value → customer experience → traffic growth → business growth.

Because the higher the product value, the better the customer experience, and the more referrals, the traffic will grow, and then the business will grow.

Step 3 ： Key elements to be listed , try to draw a closed loop.

First select several key elements, try to draw the first closed loop, and then slowly add elements.

Organize all the elements listed into a complete closed loop.

Step 4 : For each crux essential factor, again Write all-out Key influencing factors.

For example, the factors that affect the conversion rate include user demand, user trust, user recognition, copywriting, etc.

It is necessary to list all the key influencing factors, and then continuously improve and optimize these factors.

Author: Lao Chen, public account [Lao Chen's deep thinking]

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