How growth catalysts inform your strategy

Now, the final point around catalysts: catalysts largely inform our growth strategy. We’ve said a strong strategy isn’t just about picking levers to pull, but about how we execute them within our growth engine. If we’re fortunate enough to have a catalyst built into our system, we need to ensure that our execution layer is fully aligned to take advantage of it.

Say we’ve identified a network effect flywheel as our primary catalyst. What does that actually tell us?

We know that a network effect flywheel spins faster as the user base becomes larger. The core conditions are:

• Each new user adds value to every existing user.
• Retention strengthens as leaving means losing access to that growing value.
• Monetization opportunities expand as engagement and data compound.

So how does that map to strategy?

• Acquisition: We need a “feeder” channel. The flywheel can’t reach a critical threshold without users to fuel it. And we’re going to need a high-scale, high-velocity channel at that. We’ll also ensure that it is incredibly simple (and obvious) to invite users to the product, driving the viral motion that network effects power.
• Retention: We’ll need a frictionless onboarding and activation process. Network effect flywheels are meant to spin at high rates. Any unnecessary friction in the product handcuffs our most important asset.
  Monetization: A free or very low-friction pricing model is almost always required upfront. Again, friction is not our friend when it comes to network effects.

This is a very simple example. But it helps to illustrate how the pieces of the growth system will come together to develop your strategy.