Growth Models & Funnels

Up until now, we’ve been talking about growth at the system level. Now we’re zooming in on how we measure the performance of our engine.

Funnels give us a way to measure how people progress through the buying journey, from awareness through retention and monetization. They’re snapshots of how effectively we’re moving people from one stage to the next.

Growth models go deeper. They describe, with much more granularity, how people are actually moving through your entire business and product. A growth model connects the dots between your motions, your funnel, and your economics. It tells you how your engine produces growth, the levers to pull to generate even more growth, as well as the constraints keeping your engine from working at full capacity.

Think of it this way:

• Motions set the structure of your growth engine.
  
• Funnels measure how people flow through that engine.
  
• Growth models explain the mechanics of why and how the engine produces growth.

Keep in mind: your funnel and model will look very different from another company’s. That’s the whole reason we start at the systematic level. There are no playbooks or cookie-cutter paths. Your foundation is unique. Which means your engine is unique. So how you measure and model your engine will be unique as well.

Later in this program, we’ll teach you exactly how to build and apply your specific growth model and funnel.