growth-embedded

Claude uses this skill when:

• Building features that could have viral mechanics
• Adding referral or sharing functionality
• Implementing analytics and tracking
• Designing for network effects
• Optimizing for activation and retention

1. YC Growth Playbook (Source: Gustaf Alstromer, Partner at YC)

The Three Growth Levers:

📈 Acquisition - How users discover you

🎯 Activation - First value experience

🔁 Retention - Users coming back

Priority Order:

> "Retention first, activation second, acquisition last. Don't acquire users you can't retain."

Growth Loops:

```

User gets value → Shares with others → New users → Cycle repeats

```

Examples:

• Dropbox: More storage for referrals
• Superhuman: Invite-only creates FOMO
• Notion: Shared docs bring collaborators

---

2. Network Effects Patterns

Types:

Direct Network Effects:

• More users = more value for all
• Example: Social networks, marketplaces

Data Network Effects:

• More usage = smarter product
• Example: Recommendations, AI features

Platform Network Effects:

• More developers = more integrations
• Example: Shopify apps, Zapier

---

3. Referral Mechanics

Double-Sided Incentive:

```

Referrer gets: [benefit]

Referred gets: [benefit]

Both win: [shared value]

```

Tracking:

```javascript

// Referral flow

generateReferralLink(user) {

const link = app.com/ref/${user.id};

track('referral_link_generated', { userId: user.id });

return link;

}

// Attribution

onSignup(referralCode) {

const referrer = getUserByRefCode(referralCode);

track('referral_signup', {

referrer: referrer.id,

referred: newUser.id

});

giveReward(referrer);

giveReward(newUser);

}

```

---

4. Activation Optimization

Time to Value:

> "Get users to 'aha moment' as fast as possible"

Activation Milestones:

1. Signup complete
2. Setup complete
3. First value delivered
4. Habit formed

Measure:

```

Activation Rate = (Users who reached value) / (Total signups)

```

---

```

NEW FEATURE

│

├─ Can users share this? ──────YES──→ ADD SHARE FUNCTIONALITY

│ NO ↓

│

├─ Creates network effects? ───YES──→ OPTIMIZE FOR VIRAL LOOPS

│ NO ↓

│

├─ First-time experience? ─────YES──→ OPTIMIZE ACTIVATION

│ NO ↓

│

├─ Repeat usage? ──────────────YES──→ INSTRUMENT RETENTION TRACKING

│ NO ↓

│

└─ STANDARD FEATURE ←──────────────────┘

(Still track basic analytics)

```

Template 1: Referral System

```markdown

# Referral Feature

• Referrer gets: [reward]
• Referred gets: [reward]
• Both benefit: [shared value]

```javascript

// Generate referral link

const link = generateReferralLink(user);

// Track shares

track('referral_shared', {

channel: ['email', 'social', 'link'],

userId: user.id

});

// Track conversions

track('referral_converted', {

referrerId: referrer.id,

referredId: newUser.id,

timeToConversion: timestamp

});

// Reward both

giveReward(referrer, 'storage_upgrade');

giveReward(newUser, 'welcome_bonus');

```

• Link generation rate
• Share rate
• Conversion rate (clicked → signed up)
• Activation rate (signed up → activated)
• K-factor (viral coefficient)

```

Template 2: Activation Flow

```markdown

# Activation Optimization

• Target: <[X] minutes
• Current: [Y] minutes

1. Signup (100% of signups)
2. Profile Setup ([X]%)
3. First Action ([X]%)
4. Aha Moment ([X]%)
5. Habit Formation ([X]%)

• Biggest drop-off: [identify]
• Why: [hypothesis]
• Fix: [solution]

```javascript

// Track activation milestones

track('activation_milestone', {

milestone: 'profile_complete',

userId: user.id,

timeToComplete: seconds

});

// Identify where users drop off

if (!completedSetup(user, 24hours)) {

sendReminderEmail(user);

}

```

```

Template 3: Growth Analytics

```markdown

# Growth Metrics Dashboard

• New signups: [X per day]
• Channels: [organic, referral, paid]
• Cost per acquisition: [$X]

• Activation rate: [X]%
• Time to first value: [X] minutes
• Drop-off point: [step in funnel]

• Day 1: [X]%
• Day 7: [X]%
• Day 30: [X]%
• Retention curve: [improving / flat / declining]

• K-factor: [X] (viral coefficient)
• Referral rate: [X]% of users refer
• Conversion rate: [X]% of referred sign up

```javascript

// Track key events

track('user_activated', { userId, timestamp });

track('user_retained_day7', { userId, timestamp });

track('referral_sent', { referrerId, channel });

```

```

🚀 Growth Checklist

Acquisition:

• [ ] Referral system implemented
• [ ] Viral loops identified
• [ ] Share buttons prominent

Activation:

• [ ] Time to value < 5 minutes
• [ ] Onboarding optimized
• [ ] Aha moment clear

Retention:

• [ ] Usage triggers implemented
• [ ] Email/push notifications
• [ ] Habit formation designed

Analytics:

• [ ] Cohort retention tracking
• [ ] Funnel analysis
• [ ] Attribution tracking

---

Example 1: Dropbox Referral

Incentive:

• Referrer: +500MB storage
• Referred: +500MB storage
• Both win: More space

Result: 35% of signups from referrals

---

Example 2: Superhuman Activation

Time to Value:

• < 2 minutes to first email sent
• Guided onboarding
• Keyboard shortcuts taught early

Result: 90%+ retention

---

Example 3: Notion Network Effects

Growth Loop:

• User creates doc → Shares with team → Team joins Notion → Creates more docs → Cycle repeats

Result: Viral growth in teams

---

❌ Mistake 1: Optimizing Acquisition Before Retention

Problem: Leaky bucket - users leave as fast as they join

Fix: Fix retention first, then acquire

❌ Mistake 2: No Viral Mechanics

Problem: Every user requires paid acquisition

Fix: Build sharing into core features

❌ Mistake 3: Slow Activation

Problem: Users drop off before seeing value

Fix: Get to aha moment in < 5 minutes

---

• zero-to-launch - For building growth into MVP
• metrics-frameworks - For measuring growth metrics
• exp-driven-dev - For A/B testing growth features
• user-feedback-system - For improving retention

---

Gustaf Alstromer:

> "Retention first, activation second, acquisition last. Don't pour water into a leaky bucket."

Casey Winters:

> "The best growth loops are built into the product, not bolted on."

Elena Verna:

> "Acquisition is a tax on poor retention."

---

• references/yc-growth-playbook.md - Complete YC growth frameworks
• references/referral-examples.md - Successful referral programs
• references/activation-patterns.md - Onboarding best practices
• references/retention-strategies.md - Building habit-forming products