A lot has been said about secret sauces, key factors, and the different drivers of value creation and growth to build any business. It’s a subject that has received a lot of attention over the last 30 years that does not just confine to venture-backed or self-funded private companies, but also public companies.
For digital companies, in the recent past, Venture Capital firms around the world have started to observe this aspect closely. Including some analysis from within the Accel Community through the lens of digital companies, there are four key drivers that primarily contribute to value creation in a company.
Scale – Includes both supply and demand.
Habit – The stickiness of the product that forms with the users.
Brand – Emotional connect a company establishes with its existing and potential users.
Network Effects – How a product’s value increases as the number of users increases.
What is Product-led growth?
This is an idea that companies can leverage their own products and subsequent offerings to grow in terms of customer reach and retention. While it comes with its own set of advantages and ease, it might come off as limiting in terms of overall scale and user growth.
Companies like Flipkart, Myntra, and Policy Bazaar have used aggressive performance marketing and brand marketing to grow their user base. With the ongoing IPL season as well, brands like Dream11, Swiggy, CRED are advertising heavily and are growing rapidly as a result of it. Content marketing and…