diff --git a/pm-go-to-market/skills/growth-loops/SKILL.md b/pm-go-to-market/skills/growth-loops/SKILL.md index f6ff788..5f1e43f 100644 --- a/pm-go-to-market/skills/growth-loops/SKILL.md +++ b/pm-go-to-market/skills/growth-loops/SKILL.md @@ -4,8 +4,7 @@ description: "Identify growth loops (flywheels) for sustainable traction. Evalua --- # Growth Loops -## Overview -Identify and design growth loops (flywheels) that create sustainable traction. This skill evaluates five proven growth loop mechanisms to reduce reliance on paid acquisition and build product-led growth. +Identify and design growth loops (flywheels) that create sustainable, product-led traction. Analyze the user's product against five proven loop types and deliver a ranked recommendation with implementation details. ## When to Use - Designing growth mechanisms for a product @@ -51,75 +50,94 @@ Users invite other potential users in exchange for rewards, incentives, or socia - **Strength**: Directly incentivizes acquisition; easy to measure ROI - **Challenge**: Requires valuable incentive without eroding unit economics +## Loop Selection Matrix + +Score each factor 1-3 for the user's product to determine fit: + +| Factor | Viral | Usage | Collab | UGC | Referral | +|--------|-------|-------|--------|-----|----------| +| Output is shareable outside product | 3 | 2 | 1 | 2 | 1 | +| Users create content as core action | 2 | 3 | 2 | 3 | 1 | +| Product improves with more team members | 1 | 1 | 3 | 1 | 1 | +| Users browse/discover others' work | 1 | 2 | 1 | 3 | 1 | +| Clear value moment in first session | 2 | 1 | 2 | 1 | 3 | + +Highest-scoring loop = primary recommendation. Second-highest = secondary loop to layer later. + ## How It Works -### Step 1: Define Product Value -Clarify the core value users experience: -- Primary action users take in your product -- Value created per user action -- Network effects present (if any) -- Friction points in the experience - -### Step 2: Evaluate Loop Fit -Assess which growth loops align with your product: -- Product type (collaborative, content-based, utility, etc.) -- Target user behavior and sharing habits -- Network effects already present -- Existing user base and engagement - -### Step 3: Design Loop Mechanics -Create specific loop implementation: -- Trigger that initiates sharing or invitations -- Incentive for participation (intrinsic or extrinsic) -- Ease of sharing mechanism -- Conversion rate from invite to activation -- Frequency of loop repetition per user - -### Step 4: Calculate Loop Coefficient -Estimate growth velocity: -- Invites/shares per user per cycle -- Conversion rate of invites to new users -- Net new users per cycle -- Time per cycle iteration - -### Step 5: Build the Loop -Implement the highest-leverage loop first: -- Start with the most natural loop for your product -- Optimize messaging and friction -- Measure loop metrics and conversion rates -- Compound results over time - -## Input Format -Use $ARGUMENTS to pass: -- Product description and primary user action -- Target user demographics and behavior -- Existing sharing/collaboration features -- Current growth channels and metrics -- Constraints or opportunities - -## Output -A growth loops analysis including: -- Ranked evaluation of all 5 loop types for your product -- Recommended primary growth loop with implementation plan -- Secondary loops to layer over time -- Key metrics and measurement framework -- 30-60-90 day implementation roadmap -- Potential loop coefficient and growth projections +### Step 1: Gather Product Context +Extract from $ARGUMENTS: +- Core user action and value delivered +- Whether output is shareable or collaborative +- Existing network effects or sharing features +- Current acquisition channels and growth rate + +### Step 2: Score Loop Fit +Apply the selection matrix above. Present results as a ranked table with scores out of 15 and fit assessment (Strong / Moderate / Weak). + +### Step 3: Design the Primary Loop +For the top-scoring loop, specify: +1. **Trigger**: Exact user action that initiates the loop +2. **Share mechanism**: How value reaches new potential users +3. **Conversion hook**: What compels the new user to sign up +4. **Activation step**: First action that delivers value to the new user +5. **Re-engagement**: What brings the new user back to repeat the loop + +### Step 4: Estimate Loop Coefficient +``` +Loop Coefficient = (Actions per user per cycle) + x (Shares per action) + x (Conversion rate per share) + +Example: 5 actions/week x 0.3 shares/action x 0.10 conversion = 0.15 +``` + +- Coefficient > 1.0: Self-sustaining viral growth +- Coefficient 0.3-1.0: Meaningful growth amplifier +- Coefficient < 0.3: Supplement with other channels + +### Step 5: Deliver Implementation Plan +Provide a 30-60-90 day roadmap: +- **Days 1-30**: Instrument baseline metrics, ship minimum loop mechanic +- **Days 31-60**: Optimize conversion at weakest step, A/B test share prompts +- **Days 61-90**: Layer secondary loop, set coefficient targets + +## Output Format + +Structure every response as: + +1. **Product Summary**: One-sentence restatement of the product and core user action +2. **Loop Fit Scores**: Ranked table from Step 2 +3. **Primary Loop Design**: Full loop specification from Step 3 +4. **Loop Coefficient Estimate**: Calculation from Step 4 with assumptions stated +5. **Secondary Loop**: Brief design for the second-best loop to layer later +6. **Implementation Roadmap**: 30-60-90 plan from Step 5 +7. **Key Metrics to Track**: 3-5 specific metrics with target ranges + +## Example + +**Input**: "B2B project management tool where teams create and assign tasks. Free tier available. 5,000 MAU." + +**Output summary**: +- Loop Fit: Collaboration (13/15), Viral (8/15), Referral (8/15) +- Primary Loop: User creates project > Invites teammates > Teammates see value in shared board > Create their own projects > Invite their teams +- Coefficient: 3 projects/user/month x 2.5 invites/project x 0.25 conversion = 1.88 +- Roadmap: Ship "invite to board" flow (Day 1-30), optimize invite email conversion (Day 31-60), add cross-org sharing for Viral loop (Day 61-90) ## Framework Based on growth loops research by Ognjen Bošković. Focuses on compounding user acquisition through built-in, product-native sharing and collaboration mechanisms. ## Tips -- Start with one loop and master it before adding complexity -- Viral loops compound fastest but take time to build -- Collaboration loops create strongest retention and LTV -- Measure loop health weekly during optimization phase -- Combine loops for multiplicative effect once operating at scale +- Master one loop before layering a second +- Collaboration loops drive the strongest retention and lifetime value +- Measure loop health weekly; a declining coefficient signals friction buildup +- Combine loops for multiplicative effect only after the primary loop exceeds 0.5 coefficient --- ### Further Reading - [Product-Led Growth 101, Part 1/2](https://www.productcompass.pm/p/product-led-growth-101-12) -- [OpenAI’s Product Leader Shares 3-Layer Distribution Framework To Win Mind & Market Share in the AI World](https://www.productcompass.pm/p/distribution-framework-ai-products) +- [OpenAI's Product Leader Shares 3-Layer Distribution Framework To Win Mind & Market Share in the AI World](https://www.productcompass.pm/p/distribution-framework-ai-products) - [How to Design a Value Proposition Customers Can't Resist?](https://www.productcompass.pm/p/how-to-design-value-proposition-template)