BRAND LED GROWTH

Avoiding the Wheel of Meaningless Growth: How to Measure Authentic Success

Blog,Growth Marketing

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There’s a vicious cycle that plagues many companies, particularly startups. It starts with the desire for press and recognition, leading them to chase inflated metrics like downloads, registrations, or website visits. These metrics are then celebrated internally, reinforcing the idea that they’re worth pursuing. But in the relentless pursuit of these “vanity metrics,” companies often lose sight of what truly matters: authentic growth.

This blog post delves into the dangers of the “Wheel of Meaningless Growth” and explores how to define and measure authentic growth metrics that reflect the genuine value you deliver to your users.

Why Do Companies Fall Prey to Meaningless Growth?

Several factors contribute to this phenomenon:

  • In-authentic metrics often sound more impressive, especially in the early stages when startups crave media attention.
  • Authentic growth metrics are often harder to improve, requiring genuine value creation and user engagement.
  • Many tech journalists lack the expertise or incentive to scrutinise these metrics, leading to headlines based on inflated numbers.
  • As someone who has been guilty of this in the past, I understand the allure of quick wins and flashy headlines. However, at Sidekick, we firmly believe in pursuing authentic growth, which is the second core principle guiding our team.

Defining Authentic Growth Metrics: What Matters Most

The saying goes, “you get what you measure.” Therefore, defining an authentic growth metric is crucial for optimizing your efforts and achieving sustainable success. Here at Sidekick, our growth team monitors various metrics, but they all ultimately contribute to our north star: Weekly Active Users (WAU). We chose this metric based on the following criteria:

  • Retention: Any authentic growth metric needs to account for retention. This ensures you’re delivering value that keeps users coming back. In the consumer world, metrics like Daily Active Users (DAU) and WAU are commonly used, while focusing solely on downloads or registrations offers no insight into user engagement or value creation.
  • Meaningful Interaction: Defining “active” users is equally important. For apps or games, meaningful interactions, not just visits or sessions, should qualify as activity. For Sidekick, active users are those who take high-value actions like tracking or scheduling emails.
  • Relevance: The chosen metric needs to be relevant to your product’s intended use. If your product is designed for daily use, DAU might be more suitable, while WAU makes sense for weekly usage. Focusing on Monthly Active Users (MAU) for a daily-use product can be misleading, as it might include users who only engage sporadically and aren’t genuinely valuable.
  • Brutal Honesty: We’ve all seen headlines like “Company XYZ Sees 452% Growth!” or “XYZ Gains 10,000 New Users!” But let’s be honest: 452% growth of a small number is still small. Similarly, growing from 10 million to 10.01 million users isn’t a significant achievement, especially if it takes an unreasonable amount of time. Frame your numbers honestly by reporting:
    • Percentage increase
    • Absolute increase
    • Timeframe of growth

Remember, growth isn’t just about acquisition. Authentic growth encompasses the entire user journey, including activation, retention, referral, and revenue. This is what product-driven growth is all about.

Beyond Acquisition: Embracing a Holistic Approach

Focusing solely on acquiring new users is a recipe for unsustainable growth. At Sidekick, we understand that growth is influenced by multiple factors, which is why our team focuses on the entire “full funnel,” not just the acquisition layer. This includes:

  • Activation: Encouraging new users to experience the core value proposition of your product.
  • Retention: Keeping users engaged and coming back for more.
  • Referral: Encouraging existing users to spread the word about your product.
  • Revenue: Generating sustainable income from your user base.

We set goals for each stage of the funnel, recognizing their interconnectedness. For instance, increasing activation rates shouldn’t come at the expense of user churn.

Building a Growth Team for Authentic Success

Since growth goes beyond mere acquisition, your growth team needs the right skillset to influence the product-driven aspects of the equation. This is why half of our team comprises engineers, designers, and data analysts. This allows us to blend these disciplines seamlessly and execute growth experiments effectively across the entire funnel.

Ultimately, authentic growth is about delivering genuine value to your users. It’s about building trust, fostering engagement, and creating a product that users genuinely love. By focusing on authentic metrics, embracing a holistic approach, and building a well-rounded team, you

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My name is Ferran. I am a Professional Digital Designer and Front-End Developer with over a decade of experience in this field. I was born and raised in Denpasar, Bali.

I developed an interest in art and design from an early age and started my career as a designer in 2008.

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