But there’s more…
The previous example shows how exponential growth can be achieved by focusing on retention and referrals from just one group of customers.
But that’s unrealistic. The company is acquiring new customers period after period, and if their flywheel is spinning, those customers will bring in more customers.
Therefore, to capture the full dynamics of the flywheel, we paraguay mobile database need to consider the cumulative compounding of new customers acquired directly through sales and marketing efforts e., demand generation and customer acquisition over different periods of time.
Lifetime Value
The last variable to consider in the flywheel is the lifetime value LTV of your customers, because businesses need to make money. At this point, the LTV factor is much simpler - multiply the number of customers you plan to have by their lifetime value.
Multiply the previous formula by your customer’s LTV and you now have the flywheel formula.
Growth Flywheel Formula
Summary
The flywheel is more than just a buzzword. It’s the only business model that’s durable enough to help startups grow. And The Growth Flywheel framework helps simplify it so it’s easier for founders and business leaders to apply.