Growth engine

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

Growth engine

Growth engine

definition

Introduction

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.

Why it 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.

How to apply it

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.

Keep learning

Growth orchestration

Get a grip on what's actually working and what needs course correction. Use data and experiments to make decisions instead of opinions. See how changes in one part of the system affect everything else. Random tactics don't compound, coordinated ones do.

Explore playbooks

Tool selection

Tool selection

Select tools across your growth stack using clear evaluation criteria. Avoid common pitfalls, ensure integrations work, and build a system that scales with your business.

Customer research

Customer research

Uncover specific pain points, validate assumptions, and reveal what actually drives buying decisions. Run research that produces actionable insights, not just interesting quotes.

Quarterly strategy

Quarterly strategy

Run quarterly business reviews that assess current state, set ambitious but realistic goals, build actionable roadmaps, and define key results that keep everyone aligned.

Monthly review

Monthly review

Analyse monthly performance data across all four growth engines. Identify what is working, what is not, and make tactical adjustments using a structured decision framework.

Related books

Hacking growth

Sean Ellis

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Hacking growth

A practical framework for experiments and insights. Build loops, run tests and adopt a cadence that ships learning every week.

Startup growth engines

Sean Ellis

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Startup growth engines

A tour of growth case studies. Identify engines, spot patterns and design experiments that fit your context.

Scaling Up

Verne Harnish

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Scaling Up

Practical tools for scaling a company. Use rhythms, scorecards and priorities to keep a growing team aligned.

Related chapters

5

How to set up compound growth

Install tracking infrastructure that shows which metrics drive revenue. Build your scorecard and launch your first cycle with the right foundation.

Wiki

Attribution model

Assign credit to marketing touchpoints that influence conversions to understand which channels work together and deserve budget in multi-touch journeys.

Key Performance Indicator (KPI)

Select metrics that reveal whether you're achieving strategic goals to track progress and identify problems before they become expensive to fix.

Constraint

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

Minimum viable test

Design experiments that answer specific questions with minimum time and resources to maximise learning velocity without over-investing in unproven ideas.

Control group

Maintain an unchanged version in experiments to isolate the impact of your changes and prove causation rather than correlation with external factors.

Growth drivers

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

Referral marketing

Turn satisfied customers into active promoters who systematically bring qualified prospects into your pipeline at near-zero acquisition cost.

Product-led growth

Drive acquisition and expansion through product experience where users discover value before sales conversations and upgrade based on usage.

Total Addressable Market (TAM)

Estimate the maximum revenue opportunity if you captured 100% market share to size your opportunity and prioritise which markets to enter first.

Monthly Recurring Revenue (MRR)

Track predictable monthly subscription revenue to monitor short-term growth trends and make faster decisions than waiting for annual revenue reports.

Cookie

Store information in browsers to track user behaviour across visits and enable personalised experiences without requiring login for every interaction.

OMTM (One Metric That Matters)

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

Sales-led growth

Win customers through direct sales conversations where reps guide prospects from discovery to close with personalised solutions and relationship building.

Multi-touch attribution

Distribute conversion credit across multiple touchpoints to recognise that customer journeys involve many interactions and channels working together.

Workflow automation

Connect triggers to actions across systems so repetitive tasks happen automatically and teams can focus on work that requires judgement instead of admin.

Pipeline coverage

Calculate how much pipeline you need relative to quota to ensure you generate enough opportunities to hit revenue targets despite normal conversion rates.

Growth plateau

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

Prioritisation

Systematically rank projects and opportunities using objective frameworks, ensuring scarce resources flow to highest-impact work.

Last-touch attribution

Assign full conversion credit to the final touchpoint before purchase to identify which channels close deals but miss earlier influences that started journeys.

Annual Recurring Revenue (ARR)

Track predictable yearly revenue from subscriptions to measure business scale and growth trajectory in B2B SaaS and recurring revenue models.