Unit Economics. Business Prospects at the Idea Stage

Unit economics is one of the most effective methods for decision-making. It allows you to conduct a financial analysis and understand whether your business model is working properly. In this lesson, you will be told why to count unit economics, how to do it and when. You will learn about the emergence of unit economics methodology and consider examples of applying formulas to a particular unit.

Additionally, you will learn how to find break-even points with the help of a special graph, you can study an example of creating a business plan.

Analyzing customer activity on the site will help you gather information about your target audience, such as what is the most frequent time to shop or the size of the average check. But each target audience has different key metrics, so don't look at them together. Marketing metrics should be studied separately for each group using the cohort analysis method. A cohort is a segment of a target audience or a group of people who share common characteristics.

For example, regular users are united in one cohort, in another - customers who came through contextual advertising. In this tutorial, you'll explore the types of cohorts, consider the example of counting cohort analysis manually, and the process of creating a cohort report in Google Analytics.

Additionally, you will receive a list of the best tools and resources for cohort analysis.

When you first start researching unit economics, chances are you think that this indicator is the only formula. However, this is not the case. On the Internet, you can see hundreds of different methods of counting. This is because the calculation of the unit economy can be made for both online and offline business, as well as for a startup, a long-existing company, a specific product, or a certain client. In this lesson, you will learn about several ways to find a unit economy, study the calculation of the lifetime value of the client, and calculate of the cost of attracting a client.

In the supplementary materials, you can learn the practice of calculations of unit economics. You will also learn about a special service for calculating unit economics – Calqulate.

By setting and tracking the right metrics, you'll learn what the value is to your current customers, and what will help convert leads. In this lesson, you will understand how to set goals when calculating metrics, how to determine the focus metric, and choose key ones. You'll also explore an example of using categories such as video streaming subscriptions.

Additionally, you'll learn how to create a plan to achieve your business goals, and how to interview with your product.

Customer retention, or Retention, is a very important metric. It directly affects the lifetime value of the customer (LTV). The higher the lifetime value of the customer, the higher the profitability of your unit. To keep people your customers for a long time, make it a habit to use your product. You will learn what the retention schedule looks like, why increase retention, how to increase customer happiness, and how NPS works. You'll also learn product metrics and growth metrics.

Additionally, you'll get seven tips for effective NPS research.

For a healthy product to function, a balance between data and understanding the context of the situation being analyzed is necessary. Data alone doesn't help you make a decision. You need to understand why the indicator rises or falls, what exactly it can be caused by, how it can be affected, and whether it is worth it.

This is precisely why hypotheses are needed in unit economics and the aggregate analysis of the product. Sometimes even successful companies neglect hypotheses and do not understand what indicators pull the economy of the unit to the bottom. In this lesson, you will be taught how to formulate and test hypotheses correctly, and how to conclude from the results obtained.

In the supplementary materials, you will study a special matrix with which you can easily determine which hypotheses to test first, and which are better not to touch. You can also use the template to form hypotheses.

Some marketing techniques have a positive effect on the profitability of the unit, that is, increase its LTV. One such technique is user segmentation.

In this lesson, you will learn that customer segmentation is a powerful tool for promoting a product in the market. You will understand how the analysis of sales channels is carried out, study traffic and its types. We will tell you how the food funnel works, what it consists of, and how to create it.

Additionally, you will explore examples of market segmentation and strategies for social networks.

Several metrics help you quickly diagnose problems in a business. In the final lesson, you'll learn how to find the metric with the most impact, increase product value, and create value for the customer. You will receive three recommendations for professional growth.

From the supplementary materials, you will learn how to bypass the commercial offer of competitors, get a checklist for content promotion.