Growth Loops

Use it when you need your user base to drive its own expansion instead of pouring in more budget.

What is it?

Growth Loops are self-perpetuating cycles where each completed user action feeds back to bring in more users or increase engagement.

Popularized by Andrew Chen, they solve the limits of linear acquisition by creating compounding engines, unlike funnels that bleed at each stage, loops recycle users into the top. There are three core types: viral loops (user invites → new sign-ups), retention loops (active use → habit formation → repeat use), and paid loops (ad spend → LTV → reinvestment). By mapping each touchpoint, from first interaction through value delivery and invitation, you turn one-time users into growth vectors.

Growth Loops shift the mindset from “fill the funnel” to “oil the machine,” making every metric a potential input for tomorrow's acquisition.

Why it matters?

Growth Loops turn one-off marketing pushes into sustainable, compounding engines, driving lower acquisition cost, higher retention, and exponential user growth without linear budget increases.

How it works

Growth co-pilot turns your toughest product questions into clear, data-backed recommendations you can act on immediately.

Define your core loop metric

Pick a single action, like an invite sent or feature shared, that links usage back to acquisition.

Map the loop stages

Document trigger, value delivery, and invite or retention touchpoint for each user journey.

Instrument and track

Set up analytics to measure conversion rates at every handoff and loop velocity.

Optimize friction points

Run A/B tests on CTA copy, UI flow, and onboarding to boost loop completion.

Scale with experiments

Double down on channels and creatives that speed up your fastest loops.

Monitor compounding growth

Regularly review loop velocity and reinvest returns into product improvements or paid reinvestment.

Frequently asked questions

Growth co-pilot turns your toughest product questions into clear, data-backed recommendations you can act on immediately.

What's the key difference between a growth funnel and a growth loop?

Funnels lose users at each stage; loops recycle users back to the start, creating compounding acquisition instead of linear drop-off.

What's the key difference between a growth funnel and a growth loop?

Funnels lose users at each stage; loops recycle users back to the start, creating compounding acquisition instead of linear drop-off.

How long before I see results from a growth loop?

You can prototype a basic loop in 2 weeks, but compounding effects usually take 4–8 weeks of iteration and optimization to materialize.

How long before I see results from a growth loop?

You can prototype a basic loop in 2 weeks, but compounding effects usually take 4–8 weeks of iteration and optimization to materialize.

Can I run more than one growth loop at a time?

Yes. Many teams run viral, retention, and paid loops in parallel, just ensure you can track and optimize each loop independently.

Can I run more than one growth loop at a time?

Yes. Many teams run viral, retention, and paid loops in parallel, just ensure you can track and optimize each loop independently.

What metrics should I track for loop performance?

Focus on loop velocity (actions per user per period), conversion rate between stages, and the return on reinvested resources (like invitations sent or ad spend).

What metrics should I track for loop performance?

Focus on loop velocity (actions per user per period), conversion rate between stages, and the return on reinvested resources (like invitations sent or ad spend).

What are common pitfalls when building growth loops?

Overlooking friction in the invite flow, under-instrumenting metrics, and jumping to scale before optimizing loop conversion are the biggest killers of compounding growth.

What are common pitfalls when building growth loops?

Overlooking friction in the invite flow, under-instrumenting metrics, and jumping to scale before optimizing loop conversion are the biggest killers of compounding growth.

You've sketched your loop, now run it through the CrackGrowth Diagnostic to uncover hidden drop-offs and launch targeted experiments that turbocharge compounding growth.

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