Articles
Articles

Units acquisition

  • unit economics,
  • metrics,
  • cards

The choice of scaling unit is one of the most important tasks when using unit economics. How this choice is made determines the math and, most importantly, the conclusions that can be drawn from this choice.

UA metric - shows how many unique scaling units there are in the cohort being studied. If we consider the scaling unit - customer, this metric shows how many new potential customers have learned about the existence of the product during the formation of the cohort.

By determining this number we simply observe how these potential customers behave, whether they return to the product, whether they make a purchase, whether they gain customer status, etc.

When businesses talk about scaling - it means that the business wants to increase the number of potential customers who have familiarized themselves with the product. That is, to increase the value of the UA metric.

To get to scaling bynes you must first converge unit economics, namely make the contribution margin per scaling unit positive, otherwise you will be scaling losses.

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