“Think business with Penny Schiffer”
Penny Schiffer, 14. Februar 2018
In consumer sales, many more customers are needed to make a model work, either because the model has lower revenues per customer (“freemium”) or because there is a minimum penetration rate to achieve any network effects. Because of the high competition and risk, it’s essential to have a good business strategy when selling to consumers.
Let´s take the example of a mindfulness mediation app. You estimate to make CHF 2 per paying customer per month if you can provide some great content and experience for enriching people’s daily life.
Be realistic about how much money you need and design a model that will recover customer acquisition cost in less than 12 months rather than several years. And believe me, yours is not the only app out there that dreams of “going viral”!