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Part 4 of the July blog series, The Growth Ethos. Subscribe to follow it.
Traditional marketing funnels were successful when the internet was still new. Attention was cheap, trust was passive, and growth could be bought with the right budget. In 2025, the brands that thrive go beyond conversions.
They earn trust, invite participation, and create spaces where users want to stay.
“Loops don’t just retain value. They regenerate it. That’s what makes them the new engine of sustainable, purpose-led growth.”
1. Linear funnels were built for extraction
Funnels operate on a simple logic: push people through stages from awareness to conversion, then call it a success. But this mindset is short-term. Users drop off at every step, and those who convert often disappear from the system.
Today’s users expect more than a transaction. They want involvement, meaning, and a sense of shared progress. Funnels weren’t built for that. Loops are.
2. Growth loops start where funnels end
Growth loops function as self-sustaining systems. Each user action creates value that feeds the next stage, attracting more users and building momentum.
- A user takes an action
- That action benefits others
- Others engage and become users themselves
- The cycle repeats and compounds
A real-world example is Dropbox. During onboarding, consumers were offered extra storage for inviting friends. This simple, mutual reward generated a 3,900% user increase in just 15 months without relying on paid ads.
Loops in action look like this:
- A newsletter subscriber shares a case study
- A customer provides feedback that improves the product
- A community member invites peers into a Slack space
These moments aren’t accidental. They’re designed to encourage movement and contribution.
3. From acquisition to participation: why ethical growth relies on contribution
“Funnels focus on conversion. Loops focus on collaboration.“
In ethical growth models, value is created with your clients, not extracted from them. You’re not pushing people through steps. You’re building systems where users want to stay and contribute.
This mindset also shifts how success is measured:
| Old funnel KPIs | Growth loop KPIs |
|---|---|
| Clickthrough rate (CTR) | Activation rate (from sign-up to usage) |
| Cost per acquisition (CPA) | Contribution rate (referrals, shares, UGC, feedback) |
| Sales | Loop velocity (time to next meaningful action) |
Not all loops are ethical. Endless notifications or algorithmic triggers may keep users engaged, but not in a healthy or value-driven way.
Ethical loops offer real benefit and give people a reason to participate because they feel included and respected.
4. Purpose isn’t a tagline. It’s the engine.
When your personas understand your mission and feel aligned with it, they’re more likely to contribute, invite others, and stay involved. Purpose turns a useful product into something people feel part of.
Ways to make purpose actionable:
- Let users influence the roadmap
- Highlight real contributions from your community
- Offer referral rewards that align with shared ROI (return on investment)
- Give people something to build or shape with you
When it’s built into the experience, people engage because they want to — not because they’re nudged.
5. How to start mapping your growth loop
A strong loop begins with three parts:
- Trigger action: The first moment a user adds worth
- Value moment: When they experience something useful or rewarding
- Loopback point: What encourages them to return or invite others
Example:
A project management tool is used weekly for sprint planning. A shared template gallery allows users to contribute and explore new workflows. As users return and share, the loop strengthens naturally.
“Forget virality. Focus on offering something people genuinely want to return to.“
6. The growth loop maturity map: where are you now?
Moving from funnels to loops often means change. I know, scary. New KPIs, new workflows, and sometimes new roles or structures. Here’s a simple way to assess where your team stands:
| Stage | Mindset | User Role | Tactics in Use | What to Do Next |
|---|---|---|---|---|
| Funnel-led | Maximise acquisition | Passive consumer | Ads, landing pages | Track post-signup behavior |
| Loop-curious | Retain more users | Repeat user | Onboarding flows, email automation | Map one mission-driven loop |
| Loop-forming | Encourage participation | Occasional contributor | Feedback forms, share prompts | Connect actions to a product or outcome |
| Loop-powered | Empower user action | Active participant | UGC, community referrals, toolkits | Layer loops across the journey |
| Loop-native | Growth is shared | Stakeholder | Open roadmaps, co-creation programs | Measure velocity and contribution |
“In my work with founders making this shift, the hardest part is often unlearning funnel KPIs. But once teams start measuring contribution, everything changes.“
Start small. Improve one loop. Let the rest build from that.
7. A practical growth loop checklist to get started
You don’t need a big launch, just thoughtful steps that spark participation and lasting impact. Try these:
- Map your user’s first three steps
Example: sign up → invite a friend → contribute content. - Identify what brings them back
Identify what brings users back without being prompted. - Add a contribution point
Create low-barrier ways to influence what comes next, such as voting, feedback, or resource swaps. - Fix a drop-off point
Offer a meaningful next step instead of a generic pop-up. - Rethink one success metric
Move beyond clicks. Track how users contribute or amplify your product or mission.
One well-designed loop is enough to shift momentum. Build where there’s natural payoff. Design around behaviors people enjoy repeating. Then connect the dots and let contribution do the rest.
WHAT’S NEXT IN THIS SERIES
This is part 4 of The Growth Ethos, a 10-post series exploring smarter, more sustainable ways to scale in 2025.
Coming next:
→ 6 Martech Tools Every Ethical Brand Should Be Using This Year
LET’S BUILD SOMETHING BETTER
If you’re building a product, service, or strategy that values long-term trust and responsible growth—this series is for you.
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