What each T means.
Team is the people behind your company. They carry the brand, and they build the business together. Ideas without a team stay documents.
Tech is what you build and how it reaches the market: the product a competitor can't copy fast, and the channels — email, search, paid, product — carrying it to buyers. Defensibility lives here.
Traction is how far along you are: how many users, how many customers, how likely the growth continues. Your marketing experiments decide how far traction goes — which makes it the one T you can compound on purpose.
What counts as traction?
Traction is evidence the market wants what you sell: users, customers, revenue, and the slope of all three. Before you chase it, define it. Name what traction means for your business and the milestone behind it — the revenue line, the round, the customer count. Pick a number you can miss.
Leadpages is the example I used when this article first ran in 2020. The company built 250,000 leads and 40,000 paying customers in 18 months. It raised $38 million in venture capital and never had to touch it — revenue covered the growth.
Traction at that level is not luck. It runs on three disciplines: the funnel, the metrics, and the tactics. In that order.
What are the steps in a growth marketing funnel?
Six: awareness, acquisition, activation, retention, revenue, referral. The funnel is the path from stranger to paying customer to advocate — and every stage is a number you can read.
- Awareness. People learn you exist; the more who do, the greater your potential. Most of them are not ready to buy yet — the 95/5 rule says only about 5% of your market is in-market now — so awareness work compounds instead of converting on contact.
- Acquisition. You identify and attract your ideal customer, and you know which channels bring them.
- Activation. The first critical action: an email address, an account, a download. The action tells you they're interested.
- Retention. They come back — repeat visits, repeat use, more time in the product.
- Revenue. They pay you. The relationship becomes a customer.
- Referral. Satisfied customers send you their next customers. The funnel refills itself.
Map your own funnel stage by stage: where buyers find you, their first experience, what brings them back, what they pay for, and what makes them refer. Write down the number at each stage. The stage with no number is the stage leaking.
What metrics matter in growth marketing?
Four: cost to acquire a customer, lifetime value, churn rate, and referral rate. Investors read these four before they read your deck. You should read them by channel, every month.
Cost is what you pay to land one customer, broken out by channel. The same customer can cost three times more from paid search than from another channel. Dissect the health of every channel you spend in.
Lifetime value is what a customer pays you over the whole relationship — also by channel. Channels costing more sometimes deliver customers worth more. You only see it when both numbers sit side by side.
Churn rate is the percentage of customers who leave each month. It moves for ordinary reasons — inconsistent messaging, automation nobody maintains — and it quietly caps everything upstream.
Referral rate — the viral coefficient — is how many new customers your existing customers bring. If every 100 customers refer 25 more, a quarter of your growth arrives at no acquisition cost.
When do tactics work?
Only inside a strategy. Tactics are how you move the four metrics, and they fail without a defined ideal customer and a funnel to aim them at.
Tactics without a strategy are tactics without tact.
The tactics themselves rotate — channels rise and fade every few years. The funnel and the metrics stay. Set the strategy, instrument the stages, then let tactics compete for budget. On the capture side of the funnel, the system for it is a demand generation program: reaching the buyers who are in-market now, on purpose, with every dollar measured.