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Many startups are discounting their service to juice demand. Uber and Lyft have done this consistently, with some success. But without having a product that is habit-forming, the short-term growth is meaningless. (Remember Groupon?) One rule of thumb: The lower the margin of an on-demand service, the more frequent it should be used, said Archit Bhise, an associate at Redpoint.
Investors in the room agreed that because customer churn is so high, particularly in the early going, pushing up the amount of money each customer spends, or the lifetime value of a customer (LTV) is critical. Many apps may thus need to shift to subscription business models like Amazon Prime. For instance, food-delivery service Sprig in January started an Amazon Prime-type program whereby people pay a $10 monthly fee in order to avoid having to pay delivery fees altogether, no matter how many orders they place.
Опубликован 31.10.2015 в 12:53 Последнее изменение: 31.10.2015 в 14:09
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