It's a great q - I think most founders step on the pedal too early. Here's what you need to understand *before* really scaling out:
If you charge for your product, are ppl paying you?
If you don't charge for your product, are ppl using this "ALL" the time?
You should understand:
-who are they? (customer persona)
-why are they using you?
-what do they hope to achieve with you?
The flip side - interview everyone who tried your product and figure out the opposite.
-what is the day-in-a-life?
-where do you fit into this person's life / workflow?
-online? where specifically?
-offline? where specifically?
E.g. most founders know their aggregate CAC, revenue, conversion rates, etc.
But this is NOT HELPFUL.
More helpful: are your #s getting better or worse? Is engagement better or worse?
COHORT ANALYSIS!
No one does this. This might help get started:
Compare your cohorts and see if you are getting better over time.
Pick "1 metric that matters" now, and focus on making it better across cohorts.
Then, once that is in better shape, pick a diff "1 metric that matters"
-do we solve a real problem?
-do we understand the customer?
-are we getting better w/ our solution?
It's not about adding more customers. You add customers in the beginning ONLY to know if you are getting better over time
Trying to throw money at adding more ppl when you haven't nailed those learnings is a waste of money.
With regard to product, your retention is going to be key.
A social network: daily
A weekly newsletter: weekly
A monthly SaaS product: monthly
An ads prod where mkters have qtrly budgets: quarterly
A travel prod where ppl travel yrly: yrly
But based on what you think the engagement should be, are you hitting that based on your category?
Be honest with yourself.
Most VCs encourage dealing w/ retention later.
In my experience, it leads to harder problems to fix later on, which is why I prefer retention fixed early (it can be done tho)
E.g. if are a SaaS product, just 1 mo of rev. If you are an e-commerce prod, just what you make on first purchase.
Be conservative at this stage as you aim for a profitable payback period.
BUT having a quick payback period is helpful regardless because it means you can be capital efficient.
You won't have to raise as much capital.
This is through better retention and upsells.
Do marketing campaigns only to add enough people to your cohorts to understand those 3 things discussed above.