Customer EconomicsObservation 0022 min read
−14.6%
Growth is not the same thing as value.
A business can get bigger and weaker at the same time. The gap shows up first in the customers, not in the P&L.
Consumer Technology
Consumer technology grows on adoption. It creates value on engagement and repeat.
Market context
Market context
Consumer technology businesses sell devices, apps and services to consumers who compare constantly. Economics depend on activation, attach rates, subscription conversion and ecosystem loyalty.
Commercial pressures
- 01Paid installs or unit sales that never activate.
- 02Hardware margins that depend on attach and services.
- 03Promotional pricing shaping consumer price expectations.
Customer economics questions
The questions leadership should be able to answer.
Q1
Which acquisition sources produce active, paying users?
Q2
What do attach and services add to lifetime contribution?
Q3
Where is promotional pricing resetting the reference price?
Relevant capabilities
Where the work usually starts.
- 04Marketing & SalesConnect acquisition and selling activity to actual customer economics.Explore capability
Demand · Customer · Transaction
- 01Customer EconomicsUnderstand the quality and economics of the customers generating growth.Explore capability
Customer · Contribution · Repeat
- 03Revenue & PricingImprove revenue quality and capture more of the value being created.Explore capability
Transaction · Contribution
Illustrative commercial problem
Illustrative · Not a client example
Installs up, value flat
Illustrative pattern. An app's paid install campaigns double downloads. Activation and paid conversion fall, and cost per paying user rises even as cost per install improves.
Also in Digital & Technology
Intelligence
Related thinking.
Marketing & SalesObservation 0032 min read
−8.2%
The cheapest acquisition is not automatically the best acquisition.
Optimizing for cost per acquisition finds the customers who are cheapest to reach, not the ones worth reaching.
Customer EconomicsObservation 0042 min read
1.2 : 1
The ratio that reads 3 to 1, and isn't.
An LTV:CAC ratio is only as good as the churn behind it. Replace assumed churn with observed churn and the green light can turn red.
A TCB engagement
10–15
Business days
Customer Economics Sprint
One commercial diagnosis and a clear 90-day path forward: the constraint identified, the economics diagnosed, the opportunity benchmarked and the intervention prioritized.
Bring the constraint.We'll give it direction.
Start with the commercial problem you're trying to solve. We'll identify the constraint, diagnose the economics, and determine whether there is a useful next step.
- 01Identify the constraint
- 02Diagnose the economics
- 03Recommend the right intervention
- 04Define the next move