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Eric Ries

  • fredyphhas quoted2 years ago
    The engine of growth is the mechanism that startups use to achieve sustainable growth
  • fredyphhas quoted2 years ago
    Sustainable growth is characterized by one simple rule:

    New customers come from the actions of past customers.
  • fredyphhas quoted2 years ago
    There are four primary ways past customers drive sustainable growth:
  • fredyphhas quoted2 years ago
    2. As a side effect of product usage.
  • fredyphhas quoted2 years ago
    3. Through funded advertising.
  • fredyphhas quoted2 years ago
    4. Through repeat purchase or use.
  • fredyphhas quoted2 years ago
    Engines of growth are designed to give startups a relatively small set of metrics on which to focus their energies.
  • fredyphhas quoted2 years ago
    Therefore, companies using the sticky engine of growth track their attrition rate or churn rate very carefully. The churn rate is defined as the fraction of customers in any period who fail to remain engaged with the company’s product.
  • fredyphhas quoted2 years ago
    The rules that govern the sticky engine of growth are pretty simple: if the rate of new customer acquisition exceeds the churn rate, the product will grow
  • fredyphhas quoted2 years ago
    Growth happens automatically as a side effect of customers using the product. Viruses are not optional.
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