How to Increase Profit Based on Unit Economics Calculations

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To increase profits based on the results of unit economics calculations, it is necessary to identify key metrics that affect the company's income and expenses. Analysis of indicators allows you to identify weaknesses in the current strategy and find growth points that will ensure increased business efficiency. Let's take a closer look at what else can be done.

Reduce costs
The lower the company's expenses on physicians email list promotion and production of goods, the more it can earn. It is very important to remember that the goods or services must be of decent quality.

Reduce costs

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Let's look at case #1 . A company producing hand-painted gingerbread calculated the production costs of one unit for corporate orders. It turned out that using manual labor makes the cost much higher and the economics don't add up.

A decision was made to automate labor, a printer was purchased to create logos on gingerbread. On the one hand, taking into account the costs of servicing equipment, the cost price increased. On the other hand, the wage fund in operating expenses was reduced, the number of consumables decreased. As a result, the marginality became higher.

Increase LTV
The longer a client uses a company's services, the more profit the company will receive from them over time.

There are several ways to increase LTV:

creation of a bonus program;

improving the level of service and product quality;

launching a campaign to promote a product or service;

working with abandoned carts.

Case No. 2. The specificity of a company dealing with bankruptcy of individuals is one service per person. The probability that the same person will contact us again is very small. The company offers an additional service - an anti-collection agreement.

Its price is 10 times lower than the service for bankruptcy of an individual, and in terms of cost it costs nothing. At the same time, a referral and bonus system for the client was launched. All this data was taken into account in the calculation of unit economics when tracking promo codes. Against the background of all these actions, profits began to increase.

Case #3 . An online school has courses that a potential client showed interest in, but never purchased. In this situation, a corporate letter was sent to the management to reimburse the client for tuition. They could offer an installment plan, although it was not initially an offer on the official website, since the amount was small.

There were clients who paid for training but cancelled the order. In such situations, "rapid response agents" came to the rescue - specialists with a developed algorithm of actions to return clients. As an option, they offered another course to choose from.

Estimate the costs of different types of promotion
Remove channels that are operating at a loss, find more effective ones, or adjust current ads.

Case No. 4. A company specializing in the organization of bankruptcy of individuals, with more than 30 branches in Russia, implemented end-to-end analytics on acquisition channels. They set UTM tags and assigned separate numbers for each source. This made it possible to track the price of an individual user through the CRM system and eliminate channels that were operating at a loss.