Scaling Your Freemium App Business: Knowing When You’re Ready, and How to Do It
You’re almost there. Your app is ready for the limelight, you’ve tested user acquisition campaigns with platforms like Facebook and Google to figure out your audience and measure conversions, and you’ve soft-launched in test markets to get a sense of install costs and initial monetization metrics. You are starting to get some traction, and you’re ready to turn on the growth machine. However, there’s one final step you should take before flipping the switch on ramping user acquisition campaigns. Gain full confidence in your data by modelling initial user metrics and visualizing the unit economics of these initial user cohorts to make sure that your investment in ad spend is ROI positive. Quantifying the ROI of your future UA campaigns (and periodically tweaking assumptions based on changing user behaviour) is essential to reaching scale in a profitable manner.