In order to see this, let’s first define the Engagement Graph itself.Įngagement Graph depends on two parameters that underlie the value creation and growth drivers. It is interesting to note that each of these Value Layers occupy different “zones” in the Engagement Graph. Network Effects require products (i.e., Value Boosters) that have medium/high frequency and medium/high importance of activity.Brand Value Layer requires products (i.e., Value Boosters) that have high importance and low frequency of usage.Habit Value Layer requires products (i.e., Value Boosters) that have medium to high frequency of usage and low to medium importance of activity.Scale Value Layer requires products (i.e., Value Boosters) that have high frequency of usage and low importance.Here’s the key insight: product-led value drivers can be unlocked by adding products with the following distinct characteristics to the product mix: Value Boosters are product-led growth drivers for scale, habit, and brand. The additive nature of these product-led layers together help build the full Value Stack. Not only the value of these products increases as number of users/customers increase, but the products themselves can be improved as well. Why Value Boosters? Products with the right characteristics, once built, provide ongoing benefits to the company. We refer to the product-led growth drivers that help build Scale, Habit and Brand as “Value Boosters”. Product-led Brand: products that help companies to establish or deepen emotional connect with customers.Product-led Habit: products that help companies to either increase pre-conversion stickiness (and, thereby, increase conversion) or increase post-conversion repeats and retention.Product-led Scale: products that help companies to grow faster.Product-led Growth, therefore, corresponds to the following three distinct types of growth: It turns out that the other two: scale and brand can also be unlocked by adding products with distinct characteristics to the product mix. Likewise, habit depends on repeated product usage and, therefore, is product led. By definition, network effects are product led. There are product-led ways to activate and amplify each of these four value creation drivers. So, the question becomes: how can startups build products that can drive scale, create habit, build brand, and unlock network effects? These four help drive faster growth for companies. Brand (includes intangible assets such as patents, regulatory approvals, etc.Habit (includes stickiness and retention for categories such as health & finance),. ![]() Scale (to refer to both supply-side and demand-side scale),.categories, we have found that there are four value creation and growth drivers: Research over the last two decades has shown that there are only four value creation and growth mechanisms: (1) Scale, (2) Habit (referred to as Stickiness or Lock-in elsewhere), (3) Brand, and (4) Network Effects.īased on our experience with hundreds of category-creating and category-dominating companies across consumer, business, health, finance, etc.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |