Here’s another loop example: the e-commerce repurchase loop. After someone makes a purchase, you can email them a coupon to buy a second product. This prompts them to repeat earlier steps in the funnel: revisit your site, buy a new product, and receive another coupon via email.
Every growth optimization should consider where leads are in your funnel and offer them exactly what they need to compel them to take the next step — and sometimes that means starting over.
Most companies never make paid acquisition channels profitable. If they did, more companies would succeed — because advertising is so easy to scale.
Specifically, most companies are unable to profitably acquire paying users through advertising networks like Facebook Ads, Instagram Ads, and Google Ads.
If they do get one of these channels working at scale, it's a finland mobile database godsend that, when combined with strong word-of-mouth, can act as a force multiplier: every paying user attracts more users.
That’s why I encourage marketers to strengthen the conversion and referral rates of the funnel before investing heavily in paid. It makes paying cheaper.
There are three barriers that make paid channels difficult:
Profit margins — the profit you make on each sale — are critical to paid work. For reference, it’s hard to acquire an e-commerce customer for less than $30 via Facebook or Instagram ads, which are typically the cheapest advertising channels. For B2B SaaS companies, many can’t acquire a paying customer on these channels for less than $500. So if you can’t make that money back over the customer’s lifetime including the profit from the people they refer, then these channels are not sustainable.