Marketing Mental Models (aka MMM) for young marketers. Post # 3:
👉 Today’s topic: Growth.
(All posts under this series can be found here: https://harish.blog/topics/mmm/)
💡 Growth in business comes from only 2 ways: 1) More customers and 2) More rev per customer.
1) More customers = Adding users at top of the funnel + reducing churn + reactivating dormant users.
e.g. Referral programs, mass media advertising, reactivation campaigns, reducing churn at key points of dissonance etc.
2) More rev per customer = Increasing frequency + basket size + cross sell + upsell + good pricing.
e.g. Loyalty programs, engagement constructs, cross category offers, bundling, extending premium selection, etc.
💡 All growth plans should be optimising towards one of these goals. Depending on stage / maturity / opportunity of the company the priority between these goals will change.
Please refer to the image for more clarity.
