tips for growing startup business

Growing the user base of your startup doesn’t solely depend upon the traffic you attract.

In fact, gaining traffic is just one phase of growing the user base. Your start up could not succeed in the long run, unless you know how to convert visitors into users and how to retain your users for the long haul.

This is where the funnel concept comes in.

Funnel concepts define what your users are supposed to do in each phase.

For example, if someone visits your website or app, you may want him or her to learn more about your product and convince them to become a user. Once a visitor becomes a user, you retain him as a user for a long time.

So basically, the funnel concept lets you create a strategy about what a user should be doing in each phase.

Defining your growth hacking funnel

Funnel phases may differ for each startup according to objectives and nature. Ask a few questions to yourself to brainstorm ideas about creating a funnel strategy for your startup.

Here are some fundamental questions you should be asking yourself.

  • How do I get more traffic and increase the rate of user acquisition?

  • How do I get my users more engaged?

  • How do I turn a one-time user into a returning user?

Having a funnel concept gives you a clear idea about what you should be focusing more on to grow your user base.

For example, if you are getting 200 visits daily with 30% conversion rate, you may want to create a strategy for increasing traffic. On the other hand, if you are getting enough traffic but low conversion rate you should focus on increasing the conversion rate.

Phase #1: User acquisition

bringing more traffic to your website

User acquisition is the first phase of almost every growth hacking funnel.

In this phase, you may want to create a strategy for bringing more traffic to your website or app page.

The next step is converting those visitors to users. Once you’ve started getting users, you can use your existing user base to generate referral traffic. This includes:

  • Importing contacts and sending invitations

  • Social media sharing

  • Word of mouth advertising

Phase #2: Activation

It doesn’t matter how much traffic you gain unless you can make your visitors take action. The action could be big or small depending on your objectives. This may include subscribing email lists, free signups, downloading free trials, etc. In this phase, the idea is to convert your passive visitors to active users.

This phase is always important because unless they act, the visitors don’t belong to you.

Phase #3: Retention

keeping customers on my website

In the growth hacking funnel concept, the primary objective of the retention phase is to keep your customers engaged with your product so that you can keep them for a long time.

What’s more interesting is that studies reveal that 70% of companies say it is cheaper to retain a customer than acquire one. In fact, keeping your customers for a long time not only lets you make good relationships with customers but it can also be helpful for building sustainable business.

In fact, Adobe has reported that if online retailers succeed in retaining 10% of their existing customers, they would make 2x the revenue.

In fact, even the age-old business adage teaches us that 80% of revenue comes from 20% of existing customers.


Have you ever created a growth funnel strategy for your business? Let us know in the comments and contact a team member today for more information.

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