The math is pretty realistic for a given starting point. Of course in practice there will be other factors that might compound the churn braking the growth or that might allow a larger marketing budget based on the increasing growth in absolute terms leading to more turnover (I devoted a paragraph to that at the end of the article).
But for the purposes of illustration it is the easiest to keep all the numbers fixed and let only one of them vary.
People like to see an application has a lot of good reviews and users to buy, so your growth is a percentage of your users.
It would be interesting to know when the number of users is increasing as a percentage or as a fixed number depending of the sector. Is there available data for the growth of users by sector/product/industry?
Comments
The math is pretty realistic for a given starting point. Of course in practice there will be other factors that might compound the churn braking the growth or that might allow a larger marketing budget based on the increasing growth in absolute terms leading to more turnover (I devoted a paragraph to that at the end of the article).
But for the purposes of illustration it is the easiest to keep all the numbers fixed and let only one of them vary.
The Matthew Effect.
The herd behaviour.
Word of mouth.
People like to see an application has a lot of good reviews and users to buy, so your growth is a percentage of your users.
It would be interesting to know when the number of users is increasing as a percentage or as a fixed number depending of the sector. Is there available data for the growth of users by sector/product/industry?