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Transparent Growth Measurement (NPS)
What a startup in the BPC category can learn from Mamaearth

Executive Summary What a startup in BPC can learn from Mamaearth Mamaearth started in 2016, and in 2022 they are going for an IPO. Parent Company – Honasa Consumer Limited mamaearth is an award-winning online retailer that uses cutting-edge mamaearth marketing strategy to reach their target customers. With personalized content, social media campaigns, and creative […]

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Metrics are a key element that helps businesses evaluate their performances. One such metric is monthly recurring revenue. Recurring revenue can be the spine of any SaaS company, making a business or company so appealing. One method that makes SaaS companies more comprehensive is calculating monthly recurring revenue and annual recurring revenue. Companies get a […]

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Billing: Maximizing the Efficiency of Your Billing Process in Accounting

Billing process for Start-ups and small businesses is often found hectic and annoying. The entire billing process is undoubtedly time-consuming but is quite an essential element for every business. Usually, many customers tend to pay their bills on time; however, there is no guarantee that this will remain the same for every business. It is […]

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Compounded Monthly Growth Rate: Understanding and Calculating Compounded Monthly Growth Rates

Listen to this story Growth rates, those vital indicators that pulse through the veins of finance and business analysis, serve as the heartbeat of a company’s financial health. At the heart of these metrics is the Compound Monthly Growth Rate (CMGR), a precise measure that evaluates growth over monthly intervals. Whether dissecting the growth trajectories […]

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Maximizing User Retention: How to Calculate Daily Active Users

Introduction One of the critical metrics in a SaaS business or a subscription-based company is tracking the number of active users on a daily basis. A company would simply be flying blind without paying attention to this metric. Growth in the scale of Daily Active Users (DAU) indicates that new customers are joining the business, […]

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The Importance of Accurately Calculating Deferred Revenue

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What Is Startup Growth and Why Is It Important?

 

Startup growth refers to the set of strategies, experiments, and processes that help an early-stage company scale rapidly, especially under resource constraints. It emphasizes creativity, speed, and leveraging data to find efficient ways to acquire and retain customers.

This type of growth matters because startups often need to prove product‑market fit, validate their assumptions, and build momentum quickly. By focusing on growth hacking, lean methodologies, and scalable tactics, startups can maximize impact while minimizing waste and risk.

 

How to Achieve Startup Growth Effectively?

 

  • Test constantly: run experiments to validate ideas, features, and messaging.
  • Use a customer-first approach: understand your users deeply and iterate based on feedback.
  • Build referral or viral loops: incentivize users to bring in new customers.
  • Leverage low-cost acquisition channels: use organic content, community, and word-of-mouth.
  • Automate workflows: set up email flows, onboarding processes, or drip campaigns to scale.
  • Invest in community: grow a user community that can advocate for your product.
  • Track growth metrics: define your key growth metric and monitor metrics like activation, retention, and viral coefficient.
  • Iterate rapidly: once a growth experiment works, scale it; if it fails, pivot or discard it.

 

What Are the Key Concepts in Startup Growth?

 

Key Concept Description
Product‑Market Fit Ensuring that your product meets a genuine market need and resonates with early users.
Growth Hacking Using creative, low-cost strategies and experiments to drive fast, scalable growth.
Lean Startup Applying hypothesis-driven development, fast iteration, and validated learning.
Viral Loops Designing mechanisms where users naturally invite other users, driving organic growth.
AARRR Framework Tracking key stages in user lifecycle: Acquisition, Activation, Retention, Referral, Revenue.
Retention & Engagement Keeping users active over time through value, onboarding, and re-engagement strategies.
Referral Marketing Encouraging existing users to refer new customers and rewarding them for it.
Automation & Onboarding Streamlining workflows and guiding users through critical early steps with minimal manual effort.

FAQs

 

1. How is startup growth different from traditional business growth?

Startup growth emphasizes speed, experimentation, and validated learning. Rather than long-term brand-building or slow expansion, it focuses on rapid testing, low-cost acquisition, and scaling what works quickly.

2. Do all startups need to use growth hacking?

Not necessarily, but many early-stage startups benefit from it. If you’re testing your product-market fit, need quick traction, or have limited budget, growth hacking strategies can be very helpful.

3. What are some common mistakes in scaling a startup?

Common mistakes include scaling too early without validating product-market fit, running too many experiments without focus, and neglecting retention once acquisition is established.

4. How can I measure whether my startup growth strategy is working?

Track metrics like activation rate, retention, referral rate, and your “North Star” growth metric. Use cohort analysis and analytics tools to understand how users behave over time.

5. Is growth sustainable once a startup scales?

Yes, if the growth strategy evolves. Early on, growth may rely on experimentation and leveraging cheap channels. As the startup grows, you may balance that with more structured marketing, partnerships, and capital-driven scale.

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