Growth models can be loosely defined as a series of metrics that you monitor and prioritise to kick-start your growth strategy.
They’re incredibly valuable at describing how your users move between key states within your product - from New user, to At-risk, to Reactivated and so on. If you can map how your users transition between each state, you can forecast the impact of optimising one or two key user states for your business.
For one client, we worked together to produce a user-state model, where we intelligently defined different states based on the product and observed user behaviour. This means that any given user will fall into one of those defined states at any given time - if done well, there will be no leaky buckets!
The marketing team were able to monitor the impact of email campaigns experimenting to increase the rate at which users went from At-risk to Current, thus retaining users that would have been lost.
Take a look at an example I created of what the end analysis looked like. Here, you can see how optimising the email campaigns increased the user turnover from At-risk to Current can be isolated and monitored.