A growth loop is a closed system where the output of one cycle becomes the input for the next. Tracking the velocity of these loops is more important than tracking raw traffic because loops create sustainable, exponential growth without increasing ad spend linearly.

Types of SaaS Loops

• Viral Loops: Incentivized referrals where one user brings in two more
• Content Loops: User-generated content that attracts SEO traffic (e.g., public dashboards)
• Network Effect Triggers: Features that become more valuable as more coworkers join

To measure loop health, focus on the 'Cycle Time'—how long it takes for a new user to complete an action that results in a subsequent user joining.