General Marketing
Growth Loop
A growth loop is a self-reinforcing system where the output of one growth action becomes the input for the next, creating compounding returns. Unlike linear funnels, growth loops generate sustainable growth because each cycle amplifies the next.
Examples
A design tool creates a growth loop where users create designs, share them publicly with a watermark, which attracts new users who sign up and create their own designs.
Best Practices
Identify the natural loop embedded in your product experience, measure the cycle time and conversion at each step, and invest in reducing friction at the loop's weakest point.