But do you know how to calculate this indicator?
Posted: Thu Jan 23, 2025 5:09 am
Just as there are metrics in Marketing that allow you to calculate how much was achieved by using a strategy or the popular ROI , it is also possible to use a similar concept to identify the performance of a company as a whole. To do this, you must calculate the timeframes and the return on investment ratios , also known as PRI.
Whether it's to assess the risks of continuing in that business or to reduce operational issues that hinder the company's performance, identifying how long it will take to achieve the financial return on the initial investment can also be important, including for attracting potential investors and partners.
To help you clarify any doubts on the subject, we have prepared a comprehensive article, in which we will address the following topics:
So, what do you think about finding out how to calculate ROI and lead time to understand the importance of this metric for your business? Read on to the end!
There are other ways to monetize a product or service without the user paying for it, however, most of them are related to compromising the user experience.
So there is a fine line between harming the experience of freemium users with nigeria phone number list little potential to go premium and keeping the business sustainable, especially since if the use of the item, even for free, is not good enough to generate high satisfaction rates, this business will already be compromised anyway.
To minimize these risks, you need to be precise. List all your features and select the most attractive ones to add to the premium plan. However, when choosing these features, make sure that the plan actually has usability and solves the customer's problem.
Making the business unsustainable
With bad-fit clients or an inefficient strategy for convincing customers to convert, the company is likely to become an unsustainable business. Sustainability is related to building a company capable of generating income to meet its financial obligations and grow.
Therefore, it is necessary to take into account all the features and arguments that will make users switch from freemium to premium, since, as we said before, some features are more effective in making users see value in a deeper experience.
When the freemium model is used in a corporate environment, for example, it produces a decentralization of use that is difficult or almost impossible to convert into the consolidation of a more robust, but paid, product or service.
Whether it's to assess the risks of continuing in that business or to reduce operational issues that hinder the company's performance, identifying how long it will take to achieve the financial return on the initial investment can also be important, including for attracting potential investors and partners.
To help you clarify any doubts on the subject, we have prepared a comprehensive article, in which we will address the following topics:
So, what do you think about finding out how to calculate ROI and lead time to understand the importance of this metric for your business? Read on to the end!
There are other ways to monetize a product or service without the user paying for it, however, most of them are related to compromising the user experience.
So there is a fine line between harming the experience of freemium users with nigeria phone number list little potential to go premium and keeping the business sustainable, especially since if the use of the item, even for free, is not good enough to generate high satisfaction rates, this business will already be compromised anyway.
To minimize these risks, you need to be precise. List all your features and select the most attractive ones to add to the premium plan. However, when choosing these features, make sure that the plan actually has usability and solves the customer's problem.
Making the business unsustainable
With bad-fit clients or an inefficient strategy for convincing customers to convert, the company is likely to become an unsustainable business. Sustainability is related to building a company capable of generating income to meet its financial obligations and grow.
Therefore, it is necessary to take into account all the features and arguments that will make users switch from freemium to premium, since, as we said before, some features are more effective in making users see value in a deeper experience.
When the freemium model is used in a corporate environment, for example, it produces a decentralization of use that is difficult or almost impossible to convert into the consolidation of a more robust, but paid, product or service.