Growth wiki

Growth engine

Build self-reinforcing systems across demand generation, funnel conversion, sales pipeline, and customer value that create continuous momentum.

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Definition

Growth engine

A growth engine is a self-reinforcing business mechanism that, once established, generates revenue with decreasing manual intervention. The framework divides customer journeys into four interconnected engines: Demand Generation (creating awareness and traffic), Marketing Funnel (converting interest into qualified leads), Sales Pipeline (progressing leads to closed deals), and Contract Value (maximising customer lifetime value through retention, expansion, and pricing). Unlike isolated tactics, engines work as integrated systems where improvements in one component multiply effectiveness across others. Each engine has specific inputs, processes, and outputs that can be measured and optimised independently. The concept emphasises repeatability and scalability—true engines produce consistent results when you apply consistent inputs, enabling predictable forecasting. Strong growth organisations identify which engine currently constrains overall growth and concentrate improvement efforts there rather than optimising non-bottlenecks.

Importance

Why this matters

Growth engines matter because they transform random marketing activity into systematic, compounding progress. Most organisations operate with disconnected tactics—LinkedIn campaigns here, email sequences there, ad-hoc sales follow-ups—that don't reinforce each other or create momentum. The engine framework forces you to see how components interconnect mathematically: leads × conversion rate × win rate × average deal value = revenue. This reveals where growth actually breaks down. Perhaps you generate abundant leads (strong demand generation) but few convert to opportunities (weak funnel), making additional lead generation wasteful until you fix conversion. Or perhaps your funnel works brilliantly but deals stall in pipeline (weak sales process), indicating that more top-of-funnel investment helps nothing. By treating each stage as a distinct engine with measurable throughput, teams can diagnose precisely where effort yields highest returns. The discipline also enables experimentation velocity: you can test improvements to individual engines whilst holding others constant, cleanly measuring impact. Organisations that implement the four-engine model report 25-35% faster growth because they systematically address actual bottlenecks rather than guessing where to invest. The framework also clarifies ownership—different teams naturally own different engines—improving accountability and coordination across marketing, sales, and customer success.

Introduction

Introduction to

Growth engine

A growth engine is a self-reinforcing part of your business that, once running, continues to generate revenue with less and less manual push. My framework has four engines—Demand Generation, Marketing Funnel, Sales Pipeline, and Contract Value. Each engine handles a stretch of the customer journey, and together they form one continuous loop: attract the right people, convert them, close deals, then expand and retain accounts. Improve any single engine and revenue rises; improve all four and the gains compound.
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How to use it

How to apply

Growth engine

Key concepts and frameworks explained clearly. Quick reference when you need to understand a term, refresh your knowledge, or share with your team.

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1. Measure baseline output for each engine

Track leads generated, funnel conversion, win rate, and average contract value. Multiplying these four numbers shows current revenue potential.

2. Identify the weakest engine

Whichever metric drags the total down is the first focus. For example, strong lead flow but low meeting bookings points to a funnel issue.

3. Run targeted experiments

  • Demand Generation: test a webinar series or partner campaign to lift qualified lead volume.
  • Marketing Funnel: shorten forms, add social proof, or introduce a nurture sequence.
  • Sales Pipeline: tighten qualification criteria or add a follow-up cadence to raise win rate.
  • Contract Value: launch an expansion tier or improve onboarding to reduce churn.

4. Monitor compound effect

As one engine improves, re-calculate the full equation. Even modest lifts—10 % more leads, 5 % higher win rate—stack into meaningful revenue jumps.

5. Rinse and repeat

Once an engine performs at benchmark, shift focus to the next weakest link. Maintaining this rotation keeps the whole growth machine humming and protects against future plateaus.

Books

Relevant books for

Growth engine

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Fix this next
Book summary & review

Fix this next

Mike Michalowicz

A decision tool for prioritising growth work. Diagnose where to act, then pick a small change that unlocks progress now.

The Goal
Book summary & review

The Goal

Eliyahu M. Goldratt

A novel that teaches constraint thinking. Apply it to backlogs, reviews and handoffs to speed delivery.

The 80/20 Principle
Book summary & review

The 80/20 Principle

Richard Koch

Use Pareto thinking to pick channels, ideas and customers. Cut the long tail and double down on what works.

Playbooks

Read more in the growth playbook

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Playbook

Compound growth

Explain the driver tree from traffic to revenue. Find the few inputs that move results most, set weekly actions and owners, and review progress on a simple cadence.

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Compound growth
Course

Why most B2B marketers don't get the results they want

Most B2B marketers are either Random Ricks (trying everything) or Specialist Steves (obsessed with one channel). Generalists run tactics without strategy. Specialists hit channel ceilings. But there's a better way.

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Random Rick
Always-busy marketer

Tries everything at once. Posts on LinkedIn, runs ads, tweaks the website, chases referrals. Nothing compounds because nothing's consistent. Growth feels chaotic.

Specialist Steve
Single channel specialist

Obsessed with one tactic. 'We just need better ads' or 'SEO will fix everything.' Ignores the rest of the system. One strong engine can't carry a broken machine.

Solid Sarah
Full-funnel marketer

Finds the bottleneck. Fixes that first. Then moves to the next weakest link. Builds a system that's predictable, measurable and doesn't need 80-hour weeks.

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Sarah grows faster than Rick and Steve. Want to know how Solid Sarah does it?

Learn how she diagnoses bottlenecks, orchestrates the four engines, and drives predictable growth. Choose if you want to read or watch:

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Get practical frameworks delivered daily. Seven short emails explain how Sarah diagnoses bottlenecks, orchestrates the four engines, and builds systems that compound.

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Free 45-minute video module from the full course. Watch how to diagnose your growth bottleneck and see exactly what the course platform looks like.

More growth concepts explained

Growth strategy

concepts

Key concepts and frameworks explained clearly. Quick reference when you need to understand a term, refresh your knowledge, or share with your team.

See entire growth wiki
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Constraint

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Playbook

Identify and leverage limitations as forcing functions that drive creative problem-solving and strategic focus.

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Growth drivers

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Playbook

Identify the fundamental factors that directly cause business expansion, concentrating resources on activities that generate measurable results.

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Growth engine

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Playbook

Build self-reinforcing systems across demand generation, funnel conversion, sales pipeline, and customer value that create continuous momentum.

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Growth hacking

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Playbook

Deploy fast, low-cost experiments to discover scalable acquisition and retention tactics, learning through iteration rather than big bets.

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Growth lever

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Playbook

Focus resources on high-impact business mechanisms where small improvements generate disproportionate results across the entire customer journey.

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Growth marketing

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Playbook

Apply disciplined experimentation across the entire customer lifecycle, optimising every stage through rapid testing and data-driven iteration.

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Growth mindset

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Cultivate belief that skills and results improve through deliberate effort, treating setbacks as learning opportunities rather than fixed limitations.

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Growth plateau

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Playbook

Diagnose and break through stagnation by identifying which business mechanisms have reached capacity and require new approaches.

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OMTM (One Metric That Matters)

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Playbook

Focus your entire organisation on the single metric that best predicts success at your current growth stage, avoiding distraction and misalignment.

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Objectives and Key Results (OKRs)

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Playbook

Set ambitious goals and measurable outcomes that cascade through your organisation, creating alignment and accountability for strategic priorities.

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Standard Operating Procedure (SOP)

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Playbook

Document your repeatable processes in clear, step-by-step instructions that ensure consistency, enable delegation, and capture institutional knowledge.