Description
In the world of startups, catering to different target groups or customer personas is crucial. Identifying the more complex category of users is essential for success. For example, Uber faced the challenge of onboarding drivers and riders simultaneously. Focusing on onboarding drivers first ensured a better user experience for riders, attracting even more riders to the platform. To build a successful customer persona, startups must design their products to incentivize the more complex category of users effectively. This strategy will lead to increased adoption and overall product success.
Burn rate is the measure of net cash, a company lost in a period, usually a month.
Burn = Expenses - Cash inflow
Burn multiple is the ratio of revenue earned and the amount of money burned to earn that revenue.
Published 10/15/23
The viral coefficient helps to quantify the extent to which a product reaches a maximum number of people by making minimum spending on marketing activities may be happening. Businesses often run referral campaigns to effect a high virality of the product and achieve a high virality coefficient.
Published 10/13/23