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The Friday Morning 39: Build Growth Machine for Mobile app

Son Nguyen Minh
Welcome to The Friday Morning No.39! In this blog post, we have the privilege of diving into the world of paid growth machines, guided by the expertise and knowledge of Mr. Thai Bui, Director of Market at SAPO and an esteemed professional in the AI field. With his extensive experience in startups and market dynamics, Mr. Bui shares valuable insights on how to build and optimize a paid growth machine to achieve sustainable growth in today's fast-paced business landscape.

1. Paid Growth Machine Overall

In the ever-evolving world of business, understanding how to grow and, more importantly, how to sustain that growth is vital. This is where the concept of a paid growth machine comes into play. A paid growth machine enables us to not only comprehend our growth but also empowers us to achieve even greater expansion. It is a three-step process that revolves around measurability, predictability, repeatability, and scalability.

The paid engine of growth entails paying to acquire new users, monetizing those users effectively, and reinvesting the profits generated into acquiring the next set of users. By implementing this approach, we establish a cycle that continuously fuels our growth. The beauty of this system lies in its ability to provide tangible metrics and insights, allowing us to make informed decisions about our growth strategies.

2. The Million Dollar Formula

The million-dollar formula is simple yet powerful: RPI - CPI = Profit. RPI, which stands for Revenue per Install, represents the revenue generated from each installation. On the other hand, CPI, or Cost per Install, reflects the expenses incurred to acquire a new user. By subtracting CPI from RPI, we arrive at the ultimate goal: profit.

To decrease CPI, we can explore various strategies. Testing different ad creatives helps us identify what resonates with our target audience, leading to more cost-effective user acquisition. Additionally, trying out alternative ad networks can yield better results and potentially reduce costs. Ad networks now are very “smart”, let them optimize the ads for you. Public relations and branding efforts can also contribute to lowering CPI by organically attracting users and boosting brand recognition.

To increase RPI, we must focus on upgrading our products and services to enhance their value proposition. By continuously improving the conversion rate, we can maximize the number of users who become paying customers. Lastly, the art of upselling allows us to increase the average revenue generated per user, thereby boosting RPI.

3. Building a Paid Growth Machine

Building a paid growth machine requires a systematic approach. First, it's crucial to identify key performance indicators (KPIs) that accurately reflect the traction and growth of our business. These KPIs act as signposts, guiding us towards our goals. Once we have established our KPIs, we can add relevant metrics to track and measure our progress effectively.

Next, we need to fuel the growth machine. This involves implementing strategies that align with our identified KPIs and metrics. By consistently analyzing data and iterating on our approaches, we can fine-tune our growth strategies and achieve sustainable expansion. The key is to remain agile and adaptable, ensuring that our growth machine operates at its optimal level.

4. Conclusion

In the world of paid growth, there are a few fundamental principles that should guide our actions. First and foremost, creativity is essential. No idea should be discarded without exploration, as even seemingly unconventional approaches can lead to breakthroughs. Furthermore, adopting a data-driven mindset is crucial. Rather than relying solely on our expertise and intuition, we must trust the numbers and leverage data to inform our decision-making process. Finally, passion and patience are vital. Building a successful growth machine takes time and dedication. Embracing these principles will help us navigate the challenges and uncertainties on our path to sustainable growth.

The Friday Morning 39 by Mr. Thai Bui.jpg
The Friday Morning 39 by Mr. Thai Bui.jpg

As we embark on our journey of building a paid growth machine, let us remember that it holds immense potential for our businesses. By implementing the strategies and principles outlined here, we can unlock sustained growth, expand our user base, and ultimately achieve our business goals.


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