Sustainable Growth Comes from the Actions of Past Customers

Sustainable growth is the key to building a long-term, successful business. It is different from one-time growth activities, such as a single advertising campaign or a publicity stunt, which may generate a surge of customers but have no lasting impact.

The rule for sustainable growth is simple: New customers come from the actions of past customers.

There are four primary ways that past customers can drive sustainable growth:

1. Word of mouth: Satisfied customers tell their friends and family about the product.
2. Side effect of product usage: The product is designed in such a way that it is naturally exposed to new customers as it is used. For example, when you see someone wearing a particular brand of clothing, you are being exposed to that brand.
3. Funded advertising: The company uses the revenue from existing customers to fund advertising to acquire new customers.
4. Repeat purchase or use: Customers are so satisfied with the product that they purchase it again and again.

These four sources of sustainable growth power the three engines of growth. By understanding these engines, a startup can focus its efforts on the activities that will have the greatest impact on its growth.