“PreMature Scaling”. It happens to a lot of startups and we too fell in that trap once. As the startup owner, you believe your product is the “BEST”. And you’re excited to get users.
So you go all out to acquire users. Spending heaps on Facebook ads, invite a friend and get $10 campaign…
Yet after all that effort, ROI just plain sucks for one reason. Retention sucks.
It’s a rookie mistake to focus on customer acquisition instead of retention. It’s exciting to get more users, to scale… but if users are leaving as fast as you acquire them. You have a retention problem.
In other words, leaky buckets don’t need more water, they need their holes fixed.
Don’t fall into the trap of “pre-mature scaling”. Remember, retention trumps acquisition.