The Power of Velocity in Growth Marketing Experiments

Diving into the world of growth marketing, one often encounters a crossroad of confusion and anxiety: choosing between the right growth experiments. Should you prioritize high initial traction, or is velocity more critical in achieving long-term success? In this article, we'll explore why velocity often surpasses initial traction in driving sustainable growth, especially for startups and growing teams.

Understanding the Dynamics of Growth Experiments

Let's start by examining two hypothetical growth experiments:

Experiment 1: Month 1: 421 leads; Month 2: 8 leads; Month 3: 12 leads Experiment 2: Month 1: 8 leads; Month 2: 28 leads; Month 3: 87 leads

At first glance, Experiment 1 appears to have a promising start with a high number of leads in the initial month. However, the subsequent months show a significant decline in output, indicating a lack of sustained traction. On the other hand, Experiment 2 shows exponential growth, indicating increasing velocity and scalability.

Velocity: The Engine of Sustained Growth

Velocity, in the context of growth marketing experiments, is defined by the rate at which leads or conversions are generated over time. While high initial traction is a valuable metric, it is largely a snapshot of success that can be misleading. Velocity, however, is a more reliable indicator of a sustainable growth strategy because it demonstrates the ability to rapidly scale and maintain a high output.

Consider the case of Experiment 2. Within just three months, the number of leads grew from 8 to 87, showcasing an impressive pace of growth. This growth signal systems and processes, and scalability, which are crucial for long-term success.

The Pitfalls of Prioritizing Initial Traction

Startups and growing teams often make the mistake of prematurely shutting down growth experiments that fail to meet their initial targets. This approach can be fraught with risk and missed opportunities. Here’s why:

Pessimistic Safety Nets: If a growth experiment seems to be underperforming right from the start, teams mayvier to minimize losses by discontinuing the experiment too early. However, this premature decision can rob the company of valuable insights and growth opportunities. Time-Sensitive Decisions: Conversely, teams might hold onto underperforming experiments out of the belief that "growth takes time," even when initial growth rates are suboptimal. This can lead to a product or campaign being dragged out into the ground, with little to no tangible results.

Both of these approaches can be counterproductive to the long-term goals of a startup or growing team. The key is to recognize the value of initial traction as a signal of potential, and to validate that traction through velocity and scalability.

Strategies for Driving Velocity

To ensure that your growth experiments showcase velocity, consider the following strategies:

Focus on Retention: Maintaining and growing the number of engaged users or customers is crucial. Retention metrics provide invaluable insights into the health and scalability of your product or service. Optimize User Experience: Continuously improving the user experience can help in increasing user engagement and satisfaction, which in turn drives referrals and word-of-mouth growth. Data-Driven Decisions: Leverage data to make informed decisions. Use analytics to track your growth indicators and make adjustments to your strategies accordingly. Iterate and Improve: Iterate on your experiments, learning from each success and failure. Continuous improvement is key to maintaining and increasing velocity.

Conclusion

In the vibrant landscape of growth marketing, velocity is a powerful driver of sustained success. While initial traction is important, it is the sustained velocity that truly sets successful strategies apart. For startups and growing teams, focusing on scalable and systematized growth will ensure that initial success translates into lasting growth and stability.

Remember, the path to growth is not always linear. It's about staying agile, learning from failures, and continuously striving for velocity. With the right mindset and strategies, your growth experiments can become the foundation of a thriving and scalable business.