{
  "version": 3,
  "sources": ["ssg:https://framerusercontent.com/modules/w8hVaIGOipulaPDZLJmF/NbWcsYuClTBjspDfdfwc/BJmiTmBZD.js"],
  "sourcesContent": ["import{jsx as e,jsxs as t}from\"react/jsx-runtime\";import{addPropertyControls as r,ControlType as o,Link as a}from\"framer\";import*as i from\"react\";let n=\"XYoQtUp5t\",s=\"axRGq7knA\",l=\"mM5Ds7tk6\",h=\"O6Uv3TRct\",c=\"g28i2icty\",d=\"VvGR5W98R\",p=\"ifgWtujdz\",u=(e,t)=>{if(e&&\"object\"==typeof e)return{...e,alt:t};},m=[{index:0,id:\"hX9Lkfq8U\",[n]:\"What\u2019s a Chargeback? An Intro for Indie Hackers & Bootstrappers\",[s]:\"Learn more about chargebacks with our introductory guide.\",[l]:\"chargebacks\",[h]:\"2024-04-15T00:00:00.000Z\",[c]:u({src:\"https://framerusercontent.com/images/dhFM0nttIoeWpcxWq0KV684KsQ.jpg\",srcSet:\"https://framerusercontent.com/images/dhFM0nttIoeWpcxWq0KV684KsQ.jpg?scale-down-to=512 512w,https://framerusercontent.com/images/dhFM0nttIoeWpcxWq0KV684KsQ.jpg?scale-down-to=1024 1024w,https://framerusercontent.com/images/dhFM0nttIoeWpcxWq0KV684KsQ.jpg?scale-down-to=2048 2048w,https://framerusercontent.com/images/dhFM0nttIoeWpcxWq0KV684KsQ.jpg?scale-down-to=4096 4096w,https://framerusercontent.com/images/dhFM0nttIoeWpcxWq0KV684KsQ.jpg 5184w\"},\"\"),[d]:\"Che Sampat\",[p]:/*#__PURE__*/t(i.Fragment,{children:[/*#__PURE__*/e(\"p\",{children:\"You rely on your customers to keep your cash flowing.\"}),/*#__PURE__*/e(\"p\",{children:\"To a bootstrapper, cash flow is critical.\"}),/*#__PURE__*/e(\"p\",{children:\"But what happens if a customer decides they want their money back?\"}),/*#__PURE__*/e(\"p\",{children:\"Customers\u2014credit card holders\u2014have the right to dispute a transaction after it\u2019s been made if they claim they have a good reason.\"}),/*#__PURE__*/e(\"p\",{children:\"The transaction is reversed if the bank or institution that issued the card (the issuer) agrees with the customer\u2019s reason for the dispute. It puts your money back onto the customer\u2019s credit card.\"}),/*#__PURE__*/e(\"p\",{children:\"This reversal of the transaction is called a chargeback.\"}),/*#__PURE__*/e(\"p\",{children:\"Chargebacks take your cash away after it\u2019s in the bank. Then they assess extra fees on top of that.\"}),/*#__PURE__*/e(\"p\",{children:\"You may not even know the customer is unhappy until you are notified of the chargeback and the money is taken from your account.\"}),/*#__PURE__*/e(\"p\",{children:\"Chargebacks can damage your business in several other ways, too.\"}),/*#__PURE__*/e(\"p\",{children:\"What can you do?\"}),/*#__PURE__*/e(\"p\",{children:\"Let\u2019s discuss this situation.\"}),/*#__PURE__*/e(\"p\",{children:\"We\u2019ll get clear on what you must do to reverse a chargeback.\"}),/*#__PURE__*/e(\"p\",{children:\"Even better, let\u2019s also talk about how to avoid chargebacks before they happen. This is the best course of action.\"}),/*#__PURE__*/e(\"p\",{children:/*#__PURE__*/e(\"strong\",{children:\"What Happens When You Get a Chargeback?\"})}),/*#__PURE__*/t(\"p\",{children:[\"A \",/*#__PURE__*/e(a,{href:\"https://www.chargebackstop.com/blog/what-is-a-chargeback-and-how-is-it-avoided\",openInNewTab:!1,smoothScroll:!1,children:/*#__PURE__*/e(\"a\",{children:\"chargeback\"})}),\" can be damaging, especially early in a bootstrapper\u2019s history.\"]}),/*#__PURE__*/e(\"p\",{children:/*#__PURE__*/e(\"em\",{children:/*#__PURE__*/e(\"strong\",{children:\"Financial loss\"})})}),/*#__PURE__*/e(\"p\",{children:\"When a chargeback is issued, you lose:\"}),/*#__PURE__*/t(\"ul\",{children:[/*#__PURE__*/e(\"li\",{\"data-preset-tag\":\"p\",children:/*#__PURE__*/e(\"p\",{children:\"The revenue from the transaction.\"})}),/*#__PURE__*/e(\"li\",{\"data-preset-tag\":\"p\",children:/*#__PURE__*/e(\"p\",{children:\"The goods or services already delivered.\"})}),/*#__PURE__*/e(\"li\",{\"data-preset-tag\":\"p\",children:/*#__PURE__*/e(\"p\",{children:\"Associated costs of the goods or services.\"})}),/*#__PURE__*/e(\"li\",{\"data-preset-tag\":\"p\",children:/*#__PURE__*/e(\"p\",{children:\"Additional fees assessed due to the chargeback.\"})})]}),/*#__PURE__*/e(\"p\",{children:/*#__PURE__*/e(\"em\",{children:/*#__PURE__*/e(\"strong\",{children:\"Cash flow disruptions\"})})}),/*#__PURE__*/e(\"p\",{children:\"Chargebacks that disrupt your cash flow make managing expenses, investing in product development, or paying for marketing difficult. This slows growth and threatens your business.\"}),/*#__PURE__*/e(\"p\",{children:/*#__PURE__*/e(\"em\",{children:/*#__PURE__*/e(\"strong\",{children:\"Increased processing fees\"})})}),/*#__PURE__*/e(\"p\",{children:\"If you have a high number of chargebacks, your business is considered high risk.\"}),/*#__PURE__*/e(\"p\",{children:\"The payment processors punish you for this additional risk with higher processing fees, which eat into your margins.\"}),/*#__PURE__*/e(\"p\",{children:/*#__PURE__*/e(\"em\",{children:/*#__PURE__*/e(\"strong\",{children:\"Reputational damage\"})})}),/*#__PURE__*/e(\"p\",{children:\"Excessive chargebacks, usually at a rate of more than 1% of your total transactions, damage your business\u2019s reputation with payment processors and banks.\"}),/*#__PURE__*/e(\"p\",{children:\"If the payment processors terminate your use of credit cards as payment, your business could cease to function.\"}),/*#__PURE__*/e(\"p\",{children:/*#__PURE__*/e(\"em\",{children:/*#__PURE__*/e(\"strong\",{children:\"Harm to brand and loss of customer trust\"})})}),/*#__PURE__*/e(\"p\",{children:\"Having frequent chargebacks means your customers aren\u2019t happy.\"}),/*#__PURE__*/e(\"p\",{children:\"If chargebacks continue, it\u2019s a sign they\u2019ve lost trust in your brand. They don\u2019t like how you\u2019re doing business. This makes it hard to attract new customers.\"}),/*#__PURE__*/e(\"p\",{children:/*#__PURE__*/e(\"em\",{children:/*#__PURE__*/e(\"strong\",{children:\"Resource drain\"})})}),/*#__PURE__*/e(\"p\",{children:\"You can fight chargebacks, but doing so drains the time and resources you need to develop your product, provide excellent customer service, and grow your business.\"}),/*#__PURE__*/e(\"p\",{children:\"You don\u2019t want to lose the revenue and fines that accompany chargebacks, but the administrative costs of fighting them are significant.\"}),/*#__PURE__*/e(\"p\",{children:/*#__PURE__*/e(\"strong\",{children:\"How Can You Protect Yourself?\"})}),/*#__PURE__*/e(\"p\",{children:\"You need effective, proactive strategies to minimise the risks of chargebacks.\"}),/*#__PURE__*/e(\"p\",{children:\"These strategies must be built into your business from the beginning. They amount to running your business in a transparent and customer-focused way.\"}),/*#__PURE__*/e(\"p\",{children:\"This good business approach is essential for you and your customer, who does have the right to file a dispute against you for cause.\"}),/*#__PURE__*/t(\"ul\",{children:[/*#__PURE__*/e(\"li\",{\"data-preset-tag\":\"p\",children:/*#__PURE__*/t(\"p\",{children:[\"Clearly identify your business name on the credit card statement. Maybe your customers don\u2019t recognise you and think the charge is fraudulent.\",/*#__PURE__*/e(\"br\",{}),/*#__PURE__*/e(\"br\",{className:\"trailing-break\"})]})}),/*#__PURE__*/e(\"li\",{\"data-preset-tag\":\"p\",children:/*#__PURE__*/t(\"p\",{children:[\"Provide clear and accurate product descriptions. Make sure your customers know exactly what they\u2019re getting. If they think something is wrong with your product, they may dispute the transaction.\",/*#__PURE__*/e(\"br\",{}),/*#__PURE__*/e(\"br\",{className:\"trailing-break\"})]})}),/*#__PURE__*/e(\"li\",{\"data-preset-tag\":\"p\",children:/*#__PURE__*/t(\"p\",{children:[\"Make your return, cancellation, and refund policies clear and prominent. Ensuring the customers don\u2019t feel trapped in the transaction reduces the instances of chargeback disputes. Check out our \",/*#__PURE__*/e(a,{href:\"https://www.chargebackstop.com/tools/refund-policy-generator\",openInNewTab:!1,smoothScroll:!1,children:/*#__PURE__*/e(\"a\",{children:\"refund policy generator\"})}),\" for help.\",/*#__PURE__*/e(\"br\",{}),/*#__PURE__*/e(\"br\",{className:\"trailing-break\"})]})}),/*#__PURE__*/e(\"li\",{\"data-preset-tag\":\"p\",children:/*#__PURE__*/t(\"p\",{children:[\"Offer excellent customer service. If your customers feel well taken care of, they are much less likely to dispute the transaction without talking to you first.\",/*#__PURE__*/e(\"br\",{}),/*#__PURE__*/e(\"br\",{className:\"trailing-break\"})]})}),/*#__PURE__*/e(\"li\",{\"data-preset-tag\":\"p\",children:/*#__PURE__*/t(\"p\",{children:[\"Make it easy to contact you. This is an effective way to defuse any potential chargeback situation. They may solve their issue before resorting to a dispute if they can communicate with someone.\",/*#__PURE__*/e(\"br\",{}),/*#__PURE__*/e(\"br\",{className:\"trailing-break\"})]})}),/*#__PURE__*/e(\"li\",{\"data-preset-tag\":\"p\",children:/*#__PURE__*/e(\"p\",{children:\"Early on, when possible, use automated chargeback prevention services to eliminate the problems associated with excessive chargebacks. For instance, chargeback alerts allow you to refund an unhappy customer before they can dispute the transaction. Once refunded, no chargeback is possible.\"})})]}),/*#__PURE__*/e(\"p\",{children:/*#__PURE__*/e(\"strong\",{children:\"How Do I Fight a Chargeback I\u2019ve Received?\"})}),/*#__PURE__*/e(\"p\",{children:\"Certainly, cardholders have the right to dispute a transaction.\"}),/*#__PURE__*/e(\"p\",{children:\"But you have the right to defend yourself against a chargeback imposed by the bank.\"}),/*#__PURE__*/e(\"p\",{children:\"The process is a bit complicated and strictly regulated. The basics are these:\"}),/*#__PURE__*/t(\"ol\",{children:[/*#__PURE__*/e(\"li\",{\"data-preset-tag\":\"p\",children:/*#__PURE__*/t(\"p\",{children:[\"You are notified of a chargeback by the issuing bank. In that notification is a Chargeback Reason Code. This code tells you why the customer complained. You will fight back against the reason given by this specific code.\",/*#__PURE__*/e(\"br\",{}),/*#__PURE__*/e(\"br\",{className:\"trailing-break\"})]})}),/*#__PURE__*/e(\"li\",{\"data-preset-tag\":\"p\",children:/*#__PURE__*/t(\"p\",{children:[\"Gather all your evidence. If you have an automated system, all the necessary transaction details should have been collected and made available. You\u2019ll need all the evidence to bolster your argument against the chargeback reason code.\",/*#__PURE__*/e(\"br\",{}),/*#__PURE__*/e(\"br\",{className:\"trailing-break\"})]})}),/*#__PURE__*/e(\"li\",{\"data-preset-tag\":\"p\",children:/*#__PURE__*/t(\"p\",{children:[\"Write a compelling rebuttal letter. Here is where you make your argument\u2014including all the evidence\u2014that the transaction was legitimate and the chargeback should be overturned. Keep your rebuttal clear, concise, and professional. And persuasive.\",/*#__PURE__*/e(\"br\",{}),/*#__PURE__*/e(\"br\",{className:\"trailing-break\"})]})}),/*#__PURE__*/e(\"li\",{\"data-preset-tag\":\"p\",children:/*#__PURE__*/t(\"p\",{children:[\"Strictly adhere to all submission deadlines as listed in the chargeback notification. If you miss a deadline, you can assume you lost the fight.\",/*#__PURE__*/e(\"br\",{}),/*#__PURE__*/e(\"br\",{className:\"trailing-break\"})]})}),/*#__PURE__*/e(\"li\",{\"data-preset-tag\":\"p\",children:/*#__PURE__*/t(\"p\",{children:[\"If possible and appropriate, you might communicate directly with your customer to smooth things out. Resolving the dispute amicably lets the customer contact their bank and call off the chargeback.\",/*#__PURE__*/e(\"br\",{}),/*#__PURE__*/e(\"br\",{className:\"trailing-break\"})]})}),/*#__PURE__*/e(\"li\",{\"data-preset-tag\":\"p\",children:/*#__PURE__*/t(\"p\",{children:[\"IF YOU LOSE: Consider changing your business practices, making your operations more transparent, your communications more understandable, and your customer service the best it can be.\",/*#__PURE__*/e(\"br\",{}),/*#__PURE__*/e(\"br\",{className:\"trailing-break\"})]})}),/*#__PURE__*/e(\"li\",{\"data-preset-tag\":\"p\",children:/*#__PURE__*/e(\"p\",{children:\"IF YOU WIN: Use this experience to better protect yourself from chargebacks in the future. Examine your protection strategies and fortify them.\"})})]}),/*#__PURE__*/t(\"p\",{children:[/*#__PURE__*/t(\"strong\",{children:[\"Looking Forward\",/*#__PURE__*/e(\"br\",{})]}),\"If you need further clarification on this whirlwind tour through chargebacks, you can \",/*#__PURE__*/e(a,{href:\"https://chargebackstop.com/contact-us/\",openInNewTab:!1,smoothScroll:!1,children:/*#__PURE__*/e(\"a\",{children:\"contact us\"})}),\".\"]}),/*#__PURE__*/t(\"p\",{children:[\"We can also set you up with a free demo of \",/*#__PURE__*/e(a,{href:\"https://chargebackstop.com/\",openInNewTab:!1,smoothScroll:!1,children:/*#__PURE__*/e(\"a\",{children:\"ChargebackStop\"})}),\", which prevents chargebacks before they happen, especially for indie hackers and bootstrappers looking to scale quickly.\"]})]})},{index:1,id:\"UDS5pU_wx\",[n]:\"Ramen Profitability: What It Is & How To Get There\",[s]:\"Want to become ramen profitable? We've got you. Learn more about what it means, plus tips and tricks in getting there: brought to you by the Ramen Club founder community.\",[l]:\"ramen-profitability-what-it-is-and-how-to-get-there\",[h]:\"2022-12-16T00:00:00.000Z\",[c]:u({src:\"https://framerusercontent.com/images/wRkmvXWUNrqL8i3YxaBkbl5g.png\",srcSet:\"https://framerusercontent.com/images/wRkmvXWUNrqL8i3YxaBkbl5g.png?scale-down-to=512 512w,https://framerusercontent.com/images/wRkmvXWUNrqL8i3YxaBkbl5g.png 905w\"},\"\"),[d]:\"Charlie Ward\",[p]:/*#__PURE__*/t(i.Fragment,{children:[/*#__PURE__*/t(\"p\",{children:[\"Every startup needs to become profitable at some time or another. Companies willing and able to take on $25 billion in funding like Uber might be able to \",/*#__PURE__*/e(a,{href:\"https://www.reuters.com/technology/uber-posts-first-small-adjusted-profit-ridership-rises-delivery-gets-more-2021-11-04/\",openInNewTab:!1,smoothScroll:!1,children:/*#__PURE__*/e(\"a\",{children:/*#__PURE__*/e(\"strong\",{children:\"put off becoming profitable for a whole decade\"})})}),\". For us bootstrapping SaaS founders, the timeline becomes a whole lot shorter.\"]}),/*#__PURE__*/e(\"p\",{children:\"\u200DIt isn\u2019t all bad news, though!\"}),/*#__PURE__*/t(\"p\",{children:[\"\u200DIn this article, \",/*#__PURE__*/e(a,{href:\"https://ramenclub.webflow.io/\",openInNewTab:!1,smoothScroll:!1,children:/*#__PURE__*/e(\"a\",{children:/*#__PURE__*/e(\"strong\",{children:\"Ramen Club\"})})}),\" will be walking you through a topic you may or may not have heard of\u2014\",/*#__PURE__*/e(\"strong\",{children:\"ramen profitability\"}),\". Ramen profitability is an approach to profit that helps founders overcome one of the greatest mental blocks they face: \",/*#__PURE__*/e(\"strong\",{children:\"the fear of running out of money\"}),\".\"]}),/*#__PURE__*/e(\"p\",{children:\"\u200DSound interesting? Let\u2019s discuss.\"}),/*#__PURE__*/e(\"p\",{children:\"\u200D\"}),/*#__PURE__*/e(\"h2\",{children:\"What Is Ramen Profitability?\"}),/*#__PURE__*/t(\"p\",{children:[\"Ramen profitability is defined as the point at which a start-up is able to generate enough revenue from its operations to cover the living expenses of its founders. If your business is earning enough \",/*#__PURE__*/e(\"strong\",{children:\"monthly recurring revenue (MRR)\"}),\" to cover rent, utilities, and food, it's officially ramen profitable!\"]}),/*#__PURE__*/e(\"p\",{children:\"Why ramen, though? Let's unpack the underlying meanings.\"}),/*#__PURE__*/e(\"p\",{children:/*#__PURE__*/e(\"br\",{className:\"trailing-break\"})}),/*#__PURE__*/e(\"h3\",{children:\"Ramen Profitability And Long-Term Survival\"}),/*#__PURE__*/t(\"p\",{children:[\"Instant ramen is cheap\u2014\",/*#__PURE__*/e(\"em\",{children:\"really \"}),\"cheap. It's so cheap that it has basically become a cultural stand-in for the concept of cheap food.\"]}),/*#__PURE__*/t(\"p\",{children:[\"But a person could theoretically survive on a diet of ramen (okay, \",/*#__PURE__*/e(\"em\",{children:\"mostly \"}),\"ramen) for a fairly long span of time. Would it be miserable? Probably. Would you be hungry most of the time? Probably. But it's still better than the alternative!\"]}),/*#__PURE__*/t(\"p\",{children:[\"\u200DThat's the mentality that ramen profitability is all about:\",/*#__PURE__*/e(\"strong\",{children:\" long-term survival\"}),\". Traditional profitability means raising and spending money until you get your big payout. Ramen profitability means earning just enough to keep the business afloat and buy yourself time to scale and improve your product.\"]}),/*#__PURE__*/e(\"p\",{children:\"\u200DHaving a sustainable business model is critical for any company, but it's especially important for early stage startups who are still trying to figure out their place in the market.\"}),/*#__PURE__*/e(\"p\",{children:\"\u200DRamen profitability is therefore seen as a key milestone for young companies, signalling that they have achieved some level of stability and sustainability without looking to outside investments.\"}),/*#__PURE__*/e(\"p\",{children:\"\u200D\"}),/*#__PURE__*/e(\"h3\",{children:\"Ramen Profitability And Low Overhead\"}),/*#__PURE__*/e(\"p\",{children:\"Low overhead is another core piece of the ramen profitability puzzle. Traditional start-ups can be incredibly expensive. Modern software start-ups can be incredibly cheap\u2014like instant ramen!\"}),/*#__PURE__*/t(\"p\",{children:[\"\u200DA micro-SaaS product built out of the founder's parent's living room with nothing more than a laptop has an overhead of next to nothing. Now, contrast that with the overhead required to get a computer hardware start-up off the ground. Equipment, warehousing, manufacturing, R&D\u2014\",/*#__PURE__*/e(\"strong\",{children:\"nothing about the process is cheap\"}),\".\"]}),/*#__PURE__*/e(\"p\",{children:\"\u200DSo, there's a widening gap between traditional start-ups and low overhead software startups with regard to profitability. The computer hardware start-up might need $50M in revenue to achieve profitability, while the micro-SaaS start-up only needs an MRR of $100 to meet the technical definition.\"}),/*#__PURE__*/e(\"p\",{children:\"\u200DThe beauty of this realization is that it allows early stage software start-ups to set far more attainable profitability goals. Rather than shooting for the moon and trying to achieve traditional profitability, they can focus on becoming ramen profitable as quickly as possible.\"}),/*#__PURE__*/e(\"p\",{children:\"\u200D\"}),/*#__PURE__*/e(\"h2\",{children:\"What Are The Benefits Of Achieving Ramen Profitability?\"}),/*#__PURE__*/e(\"p\",{children:\"There are a few key benefits to achieving ramen profitability:\u200D\"}),/*#__PURE__*/t(\"ol\",{style:{\"--framer-font-size\":\"16px\",\"--framer-text-alignment\":\"start\",\"--framer-text-color\":\"rgb(208, 209, 215)\",\"--framer-text-transform\":\"none\"},children:[/*#__PURE__*/e(\"li\",{\"data-preset-tag\":\"p\",children:/*#__PURE__*/t(\"p\",{children:[/*#__PURE__*/e(\"strong\",{children:\"You have more control over your business\"}),\". By achieving ramen profitability, you sidestep the need for outside money. That means less equity dilution and fewer backseat drivers.\",/*#__PURE__*/e(\"br\",{}),\"\u200D\"]})}),/*#__PURE__*/e(\"li\",{\"data-preset-tag\":\"p\",children:/*#__PURE__*/t(\"p\",{children:[/*#__PURE__*/e(\"strong\",{children:\"You can focus on building a great product\"}),\". With ramen profitability, you're not focused on making a quick buck. You're focused on building a product that people will love and use long-term.\",/*#__PURE__*/e(\"br\",{}),\"\u200D\"]})}),/*#__PURE__*/e(\"li\",{\"data-preset-tag\":\"p\",children:/*#__PURE__*/t(\"p\",{children:[/*#__PURE__*/e(\"strong\",{children:\"You can weather the storms\"}),\". Start-ups are volatile by nature. Having a low overhead and minimal expenses means that you can weather the inevitable storms without having to worry about running out of cash.\"]})})]}),/*#__PURE__*/e(\"p\",{children:\"\u200D\"}),/*#__PURE__*/e(\"h2\",{children:\"How Do You Become Ramen Profitable?\"}),/*#__PURE__*/t(\"p\",{children:[\"Getting a start-up to ramen profitability involves two metrics: \",/*#__PURE__*/e(\"strong\",{children:\"monthly recurring revenue (MRR)\"}),\" and \",/*#__PURE__*/e(\"strong\",{children:\"monthly expenses (ME)\"}),\".\",/*#__PURE__*/e(\"br\",{}),\"\u200D\"]}),/*#__PURE__*/t(\"ul\",{style:{\"--framer-font-size\":\"16px\",\"--framer-text-alignment\":\"start\",\"--framer-text-color\":\"rgb(208, 209, 215)\",\"--framer-text-transform\":\"none\"},children:[/*#__PURE__*/e(\"li\",{\"data-preset-tag\":\"p\",children:/*#__PURE__*/t(\"p\",{children:[/*#__PURE__*/e(\"strong\",{children:\"MRR\"}),\": Your MRR is a measure of how much revenue your business generates on a monthly basis from recurring sources (like subscription fees for SaaS products).\",/*#__PURE__*/e(\"br\",{}),\"\u200D\"]})}),/*#__PURE__*/e(\"li\",{\"data-preset-tag\":\"p\",children:/*#__PURE__*/t(\"p\",{children:[/*#__PURE__*/e(\"strong\",{children:\"ME\"}),\": ME measures your monthly expenses\u2014both monthly personal expenses (MPE) and monthly operating expenses (MOE). Obviously, the lower your ME, the easier it will be to reach the ramen profitability milestone.\",/*#__PURE__*/e(\"br\",{}),\"\u200D\"]})})]}),/*#__PURE__*/e(\"p\",{children:\"So, the ramen profitability equation is:\"}),/*#__PURE__*/t(\"p\",{children:[\"\u200D\",/*#__PURE__*/e(\"em\",{children:/*#__PURE__*/e(\"strong\",{children:\"MRR \"})}),\"- (\",/*#__PURE__*/e(\"em\",{children:/*#__PURE__*/e(\"strong\",{children:\"MPE\"})}),\" + \",/*#__PURE__*/t(\"em\",{children:[/*#__PURE__*/e(\"strong\",{children:\"MOE\"}),\")\"]}),\" = \",/*#__PURE__*/e(\"em\",{children:/*#__PURE__*/e(\"strong\",{children:\"X\"})})]}),/*#__PURE__*/t(\"p\",{children:[\"\u200DIf X is a positive number, you've officially achieved ramen profitability. If it's \",/*#__PURE__*/e(\"em\",{children:\"highly \"}),\"positive, you might be moving into the realm of traditional profitability. If it's negative, you have two options:\",/*#__PURE__*/e(\"br\",{}),\"\u200D\"]}),/*#__PURE__*/t(\"ol\",{style:{\"--framer-font-size\":\"16px\",\"--framer-text-alignment\":\"start\",\"--framer-text-color\":\"rgb(208, 209, 215)\",\"--framer-text-transform\":\"none\"},children:[/*#__PURE__*/e(\"li\",{\"data-preset-tag\":\"p\",children:/*#__PURE__*/e(\"p\",{children:/*#__PURE__*/t(\"strong\",{children:[\"Increase your MRR\",/*#__PURE__*/e(\"br\",{}),\"\u200D\"]})})}),/*#__PURE__*/e(\"li\",{\"data-preset-tag\":\"p\",children:/*#__PURE__*/e(\"p\",{children:/*#__PURE__*/t(\"strong\",{children:[\"Decrease your ME\",/*#__PURE__*/e(\"br\",{}),\"\u200D\"]})})})]}),/*#__PURE__*/t(\"p\",{children:[\"This isn't exactly revolutionary mathematics, but it's an important segue into the central topic of this section: \",/*#__PURE__*/e(\"strong\",{children:\"how to achieve ramen profitability\"}),\". Let's talk about both of those options in a bit more detail!\"]}),/*#__PURE__*/e(\"p\",{children:\"\u200D\"}),/*#__PURE__*/e(\"h2\",{children:\"How To Increase Monthly Recurring Revenue (MRR)\"}),/*#__PURE__*/e(\"p\",{children:\"In order to increase your monthly recurring revenue, you need to take a multi-faceted approach. Here are three key areas to explore (plus some actionable tips):\"}),/*#__PURE__*/e(\"p\",{children:\"\u200D\"}),/*#__PURE__*/e(\"h3\",{children:\"Customer Acquisition\"}),/*#__PURE__*/e(\"p\",{children:\"Customer acquisition and MRR go hand in hand. The more customers you have paying for your product or service, the higher your MRR will be.\"}),/*#__PURE__*/t(\"p\",{children:[\"\u200DHere are some tips for approaching customer acquisition with the goal of ramen profitability:\",/*#__PURE__*/e(\"br\",{}),\"\u200D\"]}),/*#__PURE__*/t(\"ol\",{style:{\"--framer-font-size\":\"16px\",\"--framer-text-alignment\":\"start\",\"--framer-text-color\":\"rgb(208, 209, 215)\",\"--framer-text-transform\":\"none\"},children:[/*#__PURE__*/t(\"li\",{\"data-preset-tag\":\"p\",children:[/*#__PURE__*/t(\"p\",{children:[/*#__PURE__*/e(\"strong\",{children:\"Define your target market(s)\"}),\". Ideally, you'll have done this already. If you haven't (\",/*#__PURE__*/e(\"em\",{children:\"or \"}),\"if you think your definition needs an update), now's the time! Create an ideal customer profile (ICP) to use when and identify where they're engaging online (e.g., forums, blogs, social media). These platforms offer great opportunities for lead generation and targeted advertising campaigns.\"]}),/*#__PURE__*/e(\"p\",{children:/*#__PURE__*/e(\"br\",{className:\"trailing-break\"})})]}),/*#__PURE__*/e(\"li\",{\"data-preset-tag\":\"p\",children:/*#__PURE__*/t(\"p\",{children:[/*#__PURE__*/e(\"strong\",{children:\"Focus on contacting high-value customers\"}),\". Paul Graham dropped this piece of advice in the very same Tweet that\",/*#__PURE__*/e(a,{href:\"https://twitter.com/paulg/status/1301182684811718657\",openInNewTab:!1,smoothScroll:!1,children:/*#__PURE__*/t(\"a\",{children:[\" \",/*#__PURE__*/e(\"strong\",{children:\"popularized the term ramen profitability\"})]})}),\". When the goal is traditional profitability, quantity over quality is usually the name of the game. When your goal is ramen profitability, it's more important to focus on a few high-value customers. Make a list of businesses or individuals who match your ICP to a T and reach out with an offer.\",/*#__PURE__*/e(\"br\",{}),\"\u200D\"]})}),/*#__PURE__*/e(\"li\",{\"data-preset-tag\":\"p\",children:/*#__PURE__*/t(\"p\",{children:[/*#__PURE__*/e(\"strong\",{children:\"Offer up-sells and cross-sells\"}),\". Use upsells and cross-sells to boost average revenue per customer (ARPC) by targeting existing customers with relevant promotions or services (e.g., upgrade to a premium plan, add-on an extra feature, etc.).\",/*#__PURE__*/e(\"br\",{}),\"\u200D\"]})}),/*#__PURE__*/e(\"li\",{\"data-preset-tag\":\"p\",children:/*#__PURE__*/t(\"p\",{children:[/*#__PURE__*/e(\"strong\",{children:\"Prioritize word-of-mouth marketing\"}),\". Word-of-mouth marketing is one of the most effective tactics you can use to find new customers. If a client or customer loves your product, they're likely to tell their friends and family about it. Encourage this behavior by offering incentives for referrals.\",/*#__PURE__*/e(\"br\",{}),\"\u200D\"]})}),/*#__PURE__*/e(\"li\",{\"data-preset-tag\":\"p\",children:/*#__PURE__*/t(\"p\",{children:[/*#__PURE__*/e(\"strong\",{children:\"Join a support network\"}),\". Networks are another great way to connect with potential customers. Joining a support network for founders like\",/*#__PURE__*/e(a,{href:\"https://ramenclub.webflow.io/\",openInNewTab:!1,smoothScroll:!1,children:/*#__PURE__*/t(\"a\",{children:[\" \",/*#__PURE__*/e(\"strong\",{children:\"Ramen Club\"})]})}),\" is a great way to build mutually beneficial relationships, get feedback on your product\u2026 and commiserate over your shared start-up struggles!\",/*#__PURE__*/e(\"br\",{}),\"\u200D\"]})})]}),/*#__PURE__*/e(\"h3\",{children:\"Pricing\"}),/*#__PURE__*/e(\"p\",{children:\"You can also increase your monthly recurring revenue by charging more for your product or service\u2014but only if you don't lose too many customers in the process.\"}),/*#__PURE__*/e(\"p\",{children:\"\u200DThe key here is to find the right balance between price and value. You want to make sure that your product is priced at a level that reflects its true worthwhile still staying within the budget of your target customer.\"}),/*#__PURE__*/t(\"p\",{children:[\"\u200DHere are two strategies that might help:\",/*#__PURE__*/e(\"br\",{}),\"\u200D\"]}),/*#__PURE__*/t(\"ol\",{style:{\"--framer-font-size\":\"16px\",\"--framer-text-alignment\":\"start\",\"--framer-text-color\":\"rgb(208, 209, 215)\",\"--framer-text-transform\":\"none\"},children:[/*#__PURE__*/e(\"li\",{\"data-preset-tag\":\"p\",children:/*#__PURE__*/t(\"p\",{children:[/*#__PURE__*/e(\"strong\",{children:\"Conduct market research\"}),\". Conducting market research to compare your prices with those of similar products or services will allow you to price your product more competitively. Use feature disparities and reviews to determine an attractive price.\",/*#__PURE__*/e(\"br\",{}),\"\u200D\"]})}),/*#__PURE__*/e(\"li\",{\"data-preset-tag\":\"p\",children:/*#__PURE__*/t(\"p\",{children:[/*#__PURE__*/e(\"strong\",{children:\"Create a tiered pricing model\"}),\". Offer premium-level tiers and add-on services to generate additional revenue from existing customers. For example, a SaaS product might offer a higher package that includes more storage space or specialized customer account management.\",/*#__PURE__*/e(\"br\",{}),\"\u200D\"]})})]}),/*#__PURE__*/e(\"h3\",{children:\"Value Proposition\"}),/*#__PURE__*/t(\"p\",{children:[\"In some cases, it may not even be necessary to increase prices in order to see an improvement in monthly recurring revenue. Instead, you can improve your value proposition by focusing on what sets your business apart from the competition.\",/*#__PURE__*/e(\"br\",{}),\"\u200D\"]}),/*#__PURE__*/t(\"p\",{children:[\"One way to do this is to establish a clear and consistent brand message, which will help you build trust, loyalty, and credibility with your target market.\",/*#__PURE__*/e(\"br\",{}),\"\u200D\"]}),/*#__PURE__*/t(\"p\",{children:[\"This can be accomplished through a variety of tactics, including:\",/*#__PURE__*/e(\"br\",{}),\"\u200D\"]}),/*#__PURE__*/t(\"ol\",{style:{\"--framer-font-size\":\"16px\",\"--framer-text-alignment\":\"start\",\"--framer-text-color\":\"rgb(208, 209, 215)\",\"--framer-text-transform\":\"none\"},children:[/*#__PURE__*/e(\"li\",{\"data-preset-tag\":\"p\",children:/*#__PURE__*/t(\"p\",{children:[/*#__PURE__*/e(\"strong\",{children:\"Start an industry blog or news site\"}),\". This will help you establish yourself as a thought leader in your industry, which can make potential customers more likely to do business with you. As a rule of thumb, the less you try to sell your product the better\u2014focus on providing value for readers.\",/*#__PURE__*/e(\"br\",{}),\"\u200D\"]})}),/*#__PURE__*/e(\"li\",{\"data-preset-tag\":\"p\",children:/*#__PURE__*/t(\"p\",{children:[/*#__PURE__*/e(\"strong\",{children:\"Engage in social media marketing\"}),\". Use social media platforms (e.g., LinkedIn, Instagram, etc.) to share your brand message with a wider audience and connect with potential customers on a personal level.\",/*#__PURE__*/e(\"br\",{}),\"\u200D\"]})}),/*#__PURE__*/e(\"li\",{\"data-preset-tag\":\"p\",children:/*#__PURE__*/t(\"p\",{children:[/*#__PURE__*/e(\"strong\",{children:\"Make it easy for customers to find social proof\"}),\". Testimonials, case studies, and customer reviews are all forms of social proof that can help build trust with potential customers. Be sure to make this type of content easy to find on your website or product page!\",/*#__PURE__*/e(\"br\",{}),\"\u200D\"]})})]}),/*#__PURE__*/t(\"p\",{children:[\"As you can see, there are many different ways to increase your monthly recurring revenue and build toward ramen profitability! The most important thing is to experiment and find what works best for your specific business model and target market(s).\",/*#__PURE__*/e(\"br\",{}),\"\u200D\"]}),/*#__PURE__*/e(\"p\",{children:\"Now, let's talk about expenses.\"}),/*#__PURE__*/e(\"p\",{children:\"\u200D\"}),/*#__PURE__*/e(\"h2\",{children:\"How To Decrease Your Monthly Expenses (ME)\"}),/*#__PURE__*/t(\"p\",{children:[\"There are two main types of expenses to consider when working toward ramen profitability: monthly personal expenses (MPE) and monthly operating expenses (MOE). While both are important, I'm going to focus on the latter in this article and leave the personal finance advice for another day.\",/*#__PURE__*/e(\"br\",{}),\"\u200D\"]}),/*#__PURE__*/t(\"p\",{children:[\"Here are some tips for reducing your MOE:\",/*#__PURE__*/e(\"br\",{}),\"\u200D\"]}),/*#__PURE__*/t(\"ol\",{style:{\"--framer-font-size\":\"16px\",\"--framer-text-alignment\":\"start\",\"--framer-text-color\":\"rgb(208, 209, 215)\",\"--framer-text-transform\":\"none\"},children:[/*#__PURE__*/e(\"li\",{\"data-preset-tag\":\"p\",children:/*#__PURE__*/t(\"p\",{children:[/*#__PURE__*/e(\"strong\",{children:\"Lower monthly hosting costs\"}),\". Migrating from self-hosted platforms like Amazon Web Services (AWS) or Rackspace Cloud Hosting to managed hosting solutions often comes with built-in support and savings on infrastructure costs.\",/*#__PURE__*/e(\"br\",{}),\"\u200D\"]})}),/*#__PURE__*/e(\"li\",{\"data-preset-tag\":\"p\",children:/*#__PURE__*/t(\"p\",{children:[/*#__PURE__*/e(\"strong\",{children:\"Build mutually beneficial partnerships\"}),\". Reduce your advertising budget by partnering with businesses in your niche that have already achieved a high level of visibility (e.g., seeking out guest blogging opportunities). Once again, a support network like\",/*#__PURE__*/e(a,{href:\"https://ramenclub.webflow.io/\",openInNewTab:!1,smoothScroll:!1,children:/*#__PURE__*/t(\"a\",{children:[\" \",/*#__PURE__*/e(\"strong\",{children:\"Ramen Club\"})]})}),\" is a great place to make these connections.\",/*#__PURE__*/e(\"br\",{}),\"\u200D\"]})}),/*#__PURE__*/e(\"li\",{\"data-preset-tag\":\"p\",children:/*#__PURE__*/t(\"p\",{children:[/*#__PURE__*/e(\"strong\",{children:\"Adopt a savers' mindset\"}),\". Adopting a savers' mindset means you're constantly on the lookout for ways to reduce expenses. That might mean shopping around for the lowest prices on office supplies, merchant processing fees, and other operational costs, or negotiating lower rates with vendors or service providers.\",/*#__PURE__*/e(\"br\",{}),\"\u200D\"]})})]}),/*#__PURE__*/t(\"p\",{children:[\"As you can see, there are many ways to decrease your monthly operating costs while improving the profitability of your business. By combining these strategies with the strategies for increasing MRR, you'll be well on your way to ramen profitability in no time!\",/*#__PURE__*/e(\"br\",{}),\"\u200D\"]}),/*#__PURE__*/e(\"h2\",{children:\"Get Ramen Profitable\"}),/*#__PURE__*/t(\"p\",{children:[\"If you're thinking about starting a business, or even if you're already running one, aim for ramen profitability! It's a great way to increase your chances of success while eliminating one of the biggest mental blocks founders face: \",/*#__PURE__*/e(\"strong\",{children:\"fear of running out of money\"}),\".\"]}),/*#__PURE__*/t(\"p\",{children:[\"\u200DFor personalized advice about making ramen profitability a reality for your business, Ramen Club is the place to be. Our 60+ strong community of founders is full of bootstrappers just like you\u2014ready to offer insights, advice, and support in \",/*#__PURE__*/e(\"strong\",{children:\"weekly remote and IRL meetups\"}),\". Plus, you'll get unlimited access to expert advice from our in-house marketing, user research, and finance mentors.\"]}),/*#__PURE__*/t(\"p\",{children:[\"We can't wait to see you in\",/*#__PURE__*/e(a,{href:\"https://ramenclub.so/\",openInNewTab:!1,smoothScroll:!1,children:/*#__PURE__*/t(\"a\",{children:[\" \",/*#__PURE__*/e(\"strong\",{children:\"Ramen Club\"})]})}),\"!\"]})]})},{index:2,id:\"A_4aR2DTm\",[n]:\"How To Measure Marketing Effectiveness\",[s]:\"Learn how to measure marketing effectiveness.\",[l]:\"how-to-measure-marketing-effectiveness\",[h]:\"2023-01-26T00:00:00.000Z\",[c]:u({src:\"https://framerusercontent.com/images/ggBs4m6OsTLo90Yp8TrvTJqMMqw.png\",srcSet:\"https://framerusercontent.com/images/ggBs4m6OsTLo90Yp8TrvTJqMMqw.png?scale-down-to=512 512w,https://framerusercontent.com/images/ggBs4m6OsTLo90Yp8TrvTJqMMqw.png 905w\"},\"\"),[d]:\"Matt Laybourn\",[p]:/*#__PURE__*/t(i.Fragment,{children:[/*#__PURE__*/e(\"h2\",{children:/*#__PURE__*/e(\"strong\",{children:\"Are You Nailing It? How To Measure Marketing Effectiveness\"})}),/*#__PURE__*/e(\"p\",{children:\"Picture the scene, you\u2019re a start-up - whether it\u2019s launch day for your MVP, or you\u2019ve already been in business for two years.\\xa0\"}),/*#__PURE__*/e(\"p\",{children:\"As you chase growth and profitability \u2013 there\u2019s always a lingering question hanging over all of us; \u2018How effective is my marketing?\u2019.\"}),/*#__PURE__*/t(\"p\",{children:[\"Start-up marketing can make or break a young business, a poor marketing strategy is widely cited as the second biggest reason behind some \",/*#__PURE__*/e(a,{href:\"https://explodingtopics.com/blog/startup-failure-stats#why-startups-fail\",openInNewTab:!1,smoothScroll:!1,children:/*#__PURE__*/e(\"a\",{children:\"start-ups failures\"})}),\".\"]}),/*#__PURE__*/e(\"p\",{children:\"What should be something seemingly so straight forward, can be very challenging. There\u2019s a lot to consider \u2013 when thinking about the right strategy to attract, influence and convert your target audience.\"}),/*#__PURE__*/e(\"p\",{children:\"You need to think about multiple areas such as, is the messaging on point, what channels should we use, what is the content plan, what\u2019s the best customer journey to purchase etc\u2026 etc, ad nauseum.\"}),/*#__PURE__*/e(\"h2\",{children:/*#__PURE__*/e(\"strong\",{children:\"Marketing ROI Is Crucial For The Fledgling Start-Up\"})}),/*#__PURE__*/e(\"p\",{children:\"Every penny and minute counts. Pressure is on to make things land.\"}),/*#__PURE__*/e(\"p\",{children:\"Most of us will naturally gravitate to digital marketing activity like social, display and search, as it\u2019s much easier to target our audience and attribute ROI. Typical marketing measurement models rely on things like last-touch digital attribution to get a view on how those channels perform. Which is fine... for the most part.\"}),/*#__PURE__*/e(\"p\",{children:\"However, attribution modelling will always be flawed, as it doesn\u2019t give you context. 80% of your leads might come from Organic search. But that isn\u2019t necessarily what influenced the user to make that decision \u2013 it\u2019s just the mechanism they used to get there.\"}),/*#__PURE__*/t(\"p\",{children:[\"Think of the bigger picture, the journey from awareness to decision making is more complex than ever before. For example, the average B2B buying decision takes from 17 to 27 touches (\",/*#__PURE__*/e(a,{href:\"https://www.gartner.co.uk/en/sales/insights/b2b-buying-journey\",openInNewTab:!1,smoothScroll:!1,children:/*#__PURE__*/e(\"a\",{children:\"Gartner\"})}),\") \u2013 not one quick search then a purchase (unless you\u2019re crazy lucky!).\"]}),/*#__PURE__*/t(\"p\",{children:[\"When people want to solve a problem, they research how to do it themselves, with \",/*#__PURE__*/e(a,{href:\"https://www.trustradius.com/vendor-blog/2022-b2b-buying-disconnect-the-age-of-the-self-serve-buyer?utm_source=cision&utm_medium=content_syndication&utm_campaign=2022_06_b2bdisconnect&utm_term=v\",openInNewTab:!1,smoothScroll:!1,children:/*#__PURE__*/e(\"a\",{children:\"TrustRadius\"})}),\" recently saying 100% of users want to self-serve the buyer journey.\"]}),/*#__PURE__*/e(\"p\",{children:\"Think about a product or service you\u2019ve recently bought.\"}),/*#__PURE__*/e(\"p\",{children:\"You might have first heard about it on a podcast, watched demo videos on YouTube, looked up a Twitter account, read reviews on Trustpilot or asked for a recommendation from peers in a Slack group.\"}),/*#__PURE__*/e(\"p\",{children:\"Those are the authentic experiences that drive awareness of solutions and the actions users will take before buying \u2013 or sometimes even getting anywhere near your website. Don\u2019t get me wrong, your SEM strategy might be on point, but it\u2019s increasingly unlikely that is doing all the work on its own.\"}),/*#__PURE__*/e(\"h3\",{children:/*#__PURE__*/e(\"strong\",{children:\"Start-Ups Need To Be Agile To Find Early-Adopters\"})}),/*#__PURE__*/e(\"p\",{children:\"Start-ups face a bigger challenge than most, when compared to established players in the market \u2013 and that tends to fall in one of two categories:\"}),/*#__PURE__*/e(\"p\",{children:\"1. \\xa0 \\xa0Trying to create a new sub-category for a solution that solves a problem, one that many might not even be aware of yet, or\u2026\"}),/*#__PURE__*/e(\"p\",{children:\"2. \\xa0 \\xa0Building a new brand in an established category, where you think you have a point of difference against existing competition.\"}),/*#__PURE__*/e(\"p\",{children:\"It\u2019s vital in this case to create that demand and raise awareness about why you are unique.\"}),/*#__PURE__*/e(\"p\",{children:\"Coupled with a more complex buyer journey \u2013 traditional attribution models don\u2019t cut the mustard. I\u2019m not sure they ever did.\"}),/*#__PURE__*/e(\"h2\",{children:/*#__PURE__*/e(\"strong\",{children:\"Measurement Fit For The Modern Start-Up\"})}),/*#__PURE__*/e(\"p\",{children:\"There is an answer. It\u2019s collecting contextual feedback. When users visit our website, we do something simple. We ask people them; how did they get here?\"}),/*#__PURE__*/e(\"p\",{children:\"When combined with attribution modelling, there\u2019s a smart two-step setup that emerges that should suit most start-up marketers.\"}),/*#__PURE__*/e(\"p\",{children:\"\u200D\"}),/*#__PURE__*/e(\"p\",{children:/*#__PURE__*/e(\"strong\",{children:\"1. \\xa0 \\xa0Demand creation \u2013 measuring the impact of awareness activities\"})}),/*#__PURE__*/e(\"p\",{children:\"Unlock the \u2018point of influence\u2019, also known as \u2018Self-reported attribution\u2019.\"}),/*#__PURE__*/e(\"p\",{children:\"This is that key moment, a prospect thought \u2018I want to work with this company\u2019, by asking \u2018How did you hear about us?\u2019 on contact form submissions.\"}),/*#__PURE__*/e(\"p\",{children:\"A simple open-text field on a form, trust me it won\u2019t hurt your conversion rate and it will unlock which of your awareness strategies are killing it.\"}),/*#__PURE__*/t(\"p\",{children:[/*#__PURE__*/e(\"strong\",{children:\"Bonus points\"}),\": You can go one step further when onboarding that user. Ask about the details of that enquiry, was there a specific message that appealed to them, how did they find your content, what\u2019s the problem they were trying to solve?\"]}),/*#__PURE__*/e(\"p\",{children:\"\u200D\"}),/*#__PURE__*/e(\"p\",{children:/*#__PURE__*/e(\"strong\",{children:\"2. \\xa0 \\xa0Demand conversion \u2013 attribution isn\u2019t dead.\"})}),/*#__PURE__*/e(\"p\",{children:\"Once you\u2019ve created demand, the task now is to move that user effectively and efficiently to conversion.\"}),/*#__PURE__*/e(\"p\",{children:\"Use attribution modelling to get that broad view on how your performance engine is running. It\u2019s best to consider the impact of multiple channels (search, social, referrals etc), to see what drives the highest engagement and goal completion (chats, downloads, conversions) on your website.\"}),/*#__PURE__*/e(\"p\",{children:\"In most cases I\u2019d recommend a \u2018linear-based\u2019 attribution model, giving equal value to each touch point \u2013 or \u2018position-based\u2019 so you can add more value to first and last touch\u2019s.\\xa0\"}),/*#__PURE__*/t(\"p\",{children:[\"Using Google Analytics 4 this is a lot easier than ever before to set this up, this guide should give you all you need: \",/*#__PURE__*/e(a,{href:\"https://www.optimizesmart.com/attribution-models-in-ga4/\",openInNewTab:!1,smoothScroll:!1,children:/*#__PURE__*/e(\"a\",{children:\"https://www.optimizesmart.com/attribution-models-in-ga4/\"})})]}),/*#__PURE__*/e(\"h2\",{children:/*#__PURE__*/e(\"strong\",{children:\"Double Down On What Works.\"})}),/*#__PURE__*/e(\"p\",{children:\"You\u2019ve now got the best of both worlds. The numbers that guide you on the channels that work, and the context from converted users as to what brought them there.\"}),/*#__PURE__*/e(\"p\",{children:\"Look for trends \u2013 is that podcast coming up frequently or are those social posts getting good traction. With small volumes, you might not be statistically significant \u2013 but you can spot those trends which can help you focus your resources accordingly.\\xa0\"}),/*#__PURE__*/e(\"p\",{children:\"As much as you can, double-down on what works.\"}),/*#__PURE__*/t(\"p\",{children:[\"It\u2019s important to focus on the metrics that matter most\",/*#__PURE__*/e(\"strong\",{children:\",\"}),\" and that means understanding what influences not just conversion but revenue as well \u2013 so make sure your CRM is tracking both points 1 and 2.\"]}),/*#__PURE__*/e(\"h2\",{children:/*#__PURE__*/e(\"strong\",{children:\"Complete The Feedback Loop\"})}),/*#__PURE__*/e(\"p\",{children:\"Suddenly, you\u2019ll be collecting some incredibly rich insights and they can go much further than just \u2018measurement\u2019.\"}),/*#__PURE__*/e(\"p\",{children:\"Use self-reported attribution and onboarding feedback from users to help shape messaging and \u2018demand creation\u2019 activity \u2013 the context on why users got in touch can be so valuable.\"}),/*#__PURE__*/e(\"p\",{children:\"It might be a certain messaging angle you used, a product feature or a problem you solve that consistently comes up in conversation. This can help shape your content efforts going forwards \u2013 it shows that you are on to something!\"}),/*#__PURE__*/e(\"p\",{children:\"Adding multi-touch attribution data helps you refine that performance engine \u2013 the channel selection, CRO impact, CAC costs that will help your business acquire users at a more efficient rate.\"}),/*#__PURE__*/t(\"p\",{children:[\"Happy hunting! For more insights on all things marketing performance and measurement related follow me on \",/*#__PURE__*/e(a,{href:\"https://www.linkedin.com/in/matt-laybourn/\",openInNewTab:!1,smoothScroll:!1,children:/*#__PURE__*/e(\"a\",{children:\"LinkedIn\"})}),\" and \",/*#__PURE__*/e(a,{href:\"https://twitter.com/matt_laybourn\",openInNewTab:!1,smoothScroll:!1,children:/*#__PURE__*/e(\"a\",{children:\"Twitter\"})}),\" or check out my own start-up \",/*#__PURE__*/e(a,{href:\"http://www.rockee.io/\",openInNewTab:!1,smoothScroll:!1,children:/*#__PURE__*/e(\"a\",{children:\"www.rockee.io\"})}),\".\"]})]})},{index:3,id:\"oTfFbm4C_\",[n]:\"How To Get Your Conversion Data Into Ad Platforms\",[s]:\"Learn how to get your conversion data into ad platforms.\",[l]:\"how-to-get-your-conversion-data-into-ad-platforms\",[h]:\"2023-01-18T00:00:00.000Z\",[c]:u({src:\"https://framerusercontent.com/images/WEq0jptoy9PUuI06D08SgsnI.png\",srcSet:\"https://framerusercontent.com/images/WEq0jptoy9PUuI06D08SgsnI.png?scale-down-to=512 512w,https://framerusercontent.com/images/WEq0jptoy9PUuI06D08SgsnI.png 905w\"},\"\"),[d]:\"Pavel Titov\",[p]:/*#__PURE__*/t(i.Fragment,{children:[/*#__PURE__*/e(\"p\",{children:\"For a bootstrapped founder, taking first steps into scaling marketing through the paid ads can be scary. The competition is often fierce and without precise understanding of ad performance. Understanding ad performance and being able to adapt based on the initial customer feedback to your offering often defines whether the campaign will make it or break, never delivering profitable results.\"}),/*#__PURE__*/t(\"p\",{children:[\"Using built-in ad platform reporting is a first port of call for many, however, it often results with conversions being underreported and, as a consequence, some marketers choose to rely on standalone analytics for conversion / RoAS reporting. While these have their place,\",/*#__PURE__*/e(\"strong\",{children:\" using ad platforms directly comes with benefits of deeper understanding of audiences and customer segments, as well as driving ad platforms' AI to better optimise your ads.\"})]}),/*#__PURE__*/t(\"p\",{children:[\"In this article we'll discuss how to \",/*#__PURE__*/e(\"strong\",{children:\"fix missing conversions in ad platforms\"}),\", how to \",/*#__PURE__*/e(\"strong\",{children:\"send conversions to ad platforms\"}),\", especially ones that happen outside the browser, when an integration with conversion APIs is beneficial and how conversion reporting works in ad platforms.\"]}),/*#__PURE__*/e(\"p\",{children:/*#__PURE__*/e(\"strong\",{children:\"Why use ad platform reporting at all\"})}),/*#__PURE__*/e(\"p\",{children:\"The easiest way to evaluate performance of marketing channels is to use Google Analytics or one of the specialised analytics/reporting software. These do a good job collecting data from disparate marketing channels (just make sure you're using UTM tags in ads even if auto-tagging is available - solves a lot of headache and data discrepancies down the line).\"}),/*#__PURE__*/e(\"p\",{children:\"Conveniences come at a cost though, as using ad platforms for reporting conversions is beneficial: they offer advanced segmentation capabilities and AI-based conversion optimisation.\"}),/*#__PURE__*/e(\"p\",{children:\"Using ad platforms' segmentation in most cases gives a much greater depth than external analytics or customer data software can provide. This is because ad platforms such as Facebook and Google have a lot of data about their users - and each click they direct to you. Consequently, they offer segmentation reports that are much deeper than anything you could do relying on your own data.\"}),/*#__PURE__*/t(\"p\",{children:[\"Reporting in ad platforms allows to segment audience by demographics, location, device type (Facebook - \",/*#__PURE__*/e(a,{href:\"https://www.facebook.com/business/help/264160060861852\",openInNewTab:!1,smoothScroll:!1,children:/*#__PURE__*/e(\"a\",{children:\"https://www.facebook.com/business/help/264160060861852\"})}),\", Google - \",/*#__PURE__*/e(a,{href:\"https://support.google.com/google-ads/answer/10566573?hl=en\",openInNewTab:!1,smoothScroll:!1,children:/*#__PURE__*/e(\"a\",{children:\"https://support.google.com/google-ads/answer/10566573?hl=en\"})}),\" ). Make sure you learn about platform-specific features. Facebook, for example, makes it easier to use multiple conversion events in the reports, as well as group conversions by users to report unique results, (\",/*#__PURE__*/e(a,{href:\"https://www.facebook.com/business/help/1452248935049010\",openInNewTab:!1,smoothScroll:!1,children:/*#__PURE__*/e(\"a\",{children:\"https://www.facebook.com/business/help/1452248935049010\"})}),\") allowing to understand data and conversions throughout the funnel with more granularity. Google Ads allows adding affinity segments to Ad Groups with 'observation' setting, in effect, permitting to report which of the interests are more likely to convert (\",/*#__PURE__*/e(a,{href:\"https://support.google.com/google-ads/answer/7365594?hl=en\",openInNewTab:!1,smoothScroll:!1,children:/*#__PURE__*/e(\"a\",{children:\"https://support.google.com/google-ads/answer/7365594?hl=en\"})}),\").\"]}),/*#__PURE__*/e(\"p\",{children:\"Why is this important? There might be segments in your selected audience that cost more than the others or are ones that are more likely to convert. While you could get some idea by doing customer interviews and adjusting ad audiences accordingly, the ad platform perspective is usually much more useful as you'd see how audience cost differs for each of these segments. Much of these data - such as what affinity segment Google Ads consider your conversions to belong to (and how cost per acquisition differs between them!), are simply not available elsewhere.\"}),/*#__PURE__*/e(\"p\",{children:/*#__PURE__*/e(\"strong\",{children:'These data often have a \"zero to one\" impact on ad campaigns, defining whether you can advertise profitably at all.'})}),/*#__PURE__*/e(\"p\",{children:\"Ad delivery optimisation is the natural consequence of getting reporting in order. Once ad platforms know who convert, they are capable of showing ads to users who are more likely to convert - which eliminates paying for useless clicks or impressions. Again, this is something no standalone reporting platform can provide, and your competitors are probably already doing this.\"}),/*#__PURE__*/t(\"p\",{children:[\"So what to do if you've installed tracking pixels and tags, but still don't have all conversions or have only some of them? Some post angry tweets (and write newspaper articles) about Apple endangering small businesses (\",/*#__PURE__*/e(a,{href:\"https://www.ft.com/content/1959b06d-0a6e-4c37-9528-476f83626a86\",openInNewTab:!1,smoothScroll:!1,children:/*#__PURE__*/e(\"a\",{children:\"https://www.ft.com/content/1959b06d-0a6e-4c37-9528-476f83626a86\"})}),\"). In this article, we offer you better solutions.\"]}),/*#__PURE__*/e(\"p\",{children:/*#__PURE__*/e(\"strong\",{children:\"The quick wins. A better setup of JavaScript tracking\"})}),/*#__PURE__*/e(\"p\",{children:\"What are the steps one can take to get the right (and correct) data into ad platforms?\"}),/*#__PURE__*/t(\"p\",{children:[\"Step number one is to make sure you have Facebook Pixel, Google Tag and similar tracking pixels installed on the website. Make sure that you're using the same pixel and tag identifiers that are selected in the campaign's optimisation goals! This is important because of the logic of ad platforms', which attempt to follow the entire path of the customers who convert (\",/*#__PURE__*/e(a,{href:\"https://www.ablecdp.com/blog/know-about-conversion-apis#:~:text=How%20attribution%20algorithms%20work\",openInNewTab:!1,smoothScroll:!1,children:/*#__PURE__*/e(\"a\",{children:\"https://www.ablecdp.com/blog/know-about-conversion-apis#:~:text=How%20attribution%20algorithms%20work\"})}),\") in order to attribute all of them. If the landing page isn't tracked, whether because of incorrect setup or, say, a poor tag loading implementation after a GDPR consent is given, this will significantly reduce chances of ad platform attributing the conversion due to browser tracking restrictions.\"]}),/*#__PURE__*/t(\"p\",{children:[\"Step number two is to send the conversions that matter to the tracking pixels and tags. Two considerations apply there: first, conversion window in ad platforms is limited. As a shorthand, at the time of writing this article Google Ads has a 30-day default that can be changed to up to 90 days (\",/*#__PURE__*/e(a,{href:\"https://support.google.com/google-ads/answer/3123169?hl=en-GB\",openInNewTab:!1,smoothScroll:!1,children:/*#__PURE__*/e(\"a\",{children:\"https://support.google.com/google-ads/answer/3123169?hl=en-GB\"})}),\"), whereas Facebook is much more limited. Facebook originally announced (\",/*#__PURE__*/e(a,{href:\"https://www.facebook.com/business/news/how-to-prepare-for-changes-to-facebook-ads-from-ios-14-update\",openInNewTab:!1,smoothScroll:!1,children:/*#__PURE__*/e(\"a\",{children:\"https://www.facebook.com/business/news/how-to-prepare-for-changes-to-facebook-ads-from-ios-14-update\"})}),\") that only 1 day click-through attribution settings includes modelled conversions (an euphemism used by ad platforms to describe how they track clicks from Apple devices and apps without unique click ids), which has been since expanded to 7 days (\",/*#__PURE__*/e(a,{href:\"https://www.facebook.com/business/news/navigating-change-and-improving-performance-and-measurement\",openInNewTab:!1,smoothScroll:!1,children:/*#__PURE__*/e(\"a\",{children:\"https://www.facebook.com/business/news/navigating-change-and-improving-performance-and-measurement\"})}),\"). (Hint: for longer term conversions you can use offline conversion sets which, while not visible in the reporting outside of the attribution window, can still be used to build lookalike audiences for up to 180 days worth of conversions! \",/*#__PURE__*/e(a,{href:\"https://www.facebook.com/business/help/1817351008517210\",openInNewTab:!1,smoothScroll:!1,children:/*#__PURE__*/e(\"a\",{children:\"https://www.facebook.com/business/help/1817351008517210\"})}),\") The modelled conversions using only browser data are only a part of\\xa0 getting the right data into ad platforms.\"]}),/*#__PURE__*/t(\"p\",{children:[\"More recently, to supplement click identifiers, ad platforms rolled out extended audience matching capabilities that use personal data such as email and phone. Make sure the tracking pixels are set up to send them from lead forms (Google - \",/*#__PURE__*/e(a,{href:\"https://support.google.com/google-ads/answer/10172785?hl=en\",openInNewTab:!1,smoothScroll:!1,children:/*#__PURE__*/e(\"a\",{children:\"https://support.google.com/google-ads/answer/10172785?hl=en\"})}),\", Facebook - \",/*#__PURE__*/e(a,{href:\"https://developers.facebook.com/docs/meta-pixel/advanced/advanced-matching\",openInNewTab:!1,smoothScroll:!1,children:/*#__PURE__*/e(\"a\",{children:\"https://developers.facebook.com/docs/meta-pixel/advanced/advanced-matching\"})}),\").\\xa0 or use conversion APIs, more on them later, as well as that you have accepted customer data usage terms in Google Ads and have correct conversions set up in the Facebook Pixel settings - otherwise ad platforms will ignore your conversions!\"]}),/*#__PURE__*/t(\"p\",{children:[\"If you've done everything correctly, \",/*#__PURE__*/e(\"strong\",{children:\"you should now see almost all of your online conversions right in the ad platforms' reports\"}),\".\"]}),/*#__PURE__*/e(\"p\",{children:\"You'll still see discrepancy if you're measuring something like redirects to the 'thank you' page rather than lead or checkout form completions for example. In many cases conversions also happen 'offline' - such as the start of a paid subscription after trial, qualified CRM lead or a CRM sale, or perhaps a purchase that's done after a few email follow-ups - these are often unattributable to the original source because ad tracking cookies would be deleted by browser or a different device used than the one where the ad was clicked.\"}),/*#__PURE__*/e(\"p\",{children:\"That's where conversion APIs come into play.\"}),/*#__PURE__*/e(\"p\",{children:/*#__PURE__*/e(\"strong\",{children:\"Conversion APIs. Measuring 'Offline' subscription and lead qualification conversions\"})}),/*#__PURE__*/e(\"p\",{children:\"Conversion APIs allow to send conversion data directly to the ad platforms' servers. This is useful for any conversions that happen outside of the browser (such as a subscription start or CRM conversions) and also can be used to have more control over what data are sent to ad platforms, as well as track conversions without use of cookies (in which case you're expected to store click and browser details and supply them to the API - more on this later).\"}),/*#__PURE__*/e(\"p\",{children:\"It is very easy, however, to misconfigure the integration with conversion APIs, and some of the off-the-shelf integrations are particularly prone to that. Or simply don't send complete customer details as expected by ad platforms. If you're using a conversion API and notice data discrepancy, check for the following most common issues:\"}),/*#__PURE__*/t(\"ul\",{style:{\"--framer-font-size\":\"16px\",\"--framer-text-alignment\":\"start\",\"--framer-text-color\":\"rgb(208, 209, 215)\",\"--framer-text-transform\":\"none\"},children:[/*#__PURE__*/e(\"li\",{\"data-preset-tag\":\"p\",children:/*#__PURE__*/t(\"p\",{children:[/*#__PURE__*/e(\"strong\",{children:\"Incorrect ad platform setup\"}),\". This includes sending conversions that occur outside of the configured conversion window, not accepting privacy terms for customer match in Google Ads (which are needed even if you're not using Customer Match lists!), not configuring Facebook Ads for tracking IOS 14+ conversions (\",/*#__PURE__*/e(a,{href:\"https://www.facebook.com/business/help/126789292407737\",openInNewTab:!1,smoothScroll:!1,children:/*#__PURE__*/e(\"a\",{children:\"https://www.facebook.com/business/help/126789292407737\"})}),\") etc.\"]})}),/*#__PURE__*/e(\"li\",{\"data-preset-tag\":\"p\",children:/*#__PURE__*/t(\"p\",{children:[/*#__PURE__*/e(\"strong\",{children:\"Sending duplicate conversions\"}),\". Sending the same conversion to both in-browser pixel and API would cause duplicates to appear in the reports. This should be resolved by selecting the method most appropriate for the given conversion even in the given funnel: if tracking cookies are expected to be always available to the pixel or tag, and it is configured to send enhanced customer match parameters, use of conversions API is unnecessary; it can be used if it simplifies setup if you're already using it for other events though.\"]})}),/*#__PURE__*/e(\"li\",{\"data-preset-tag\":\"p\",children:/*#__PURE__*/t(\"p\",{children:[/*#__PURE__*/e(\"strong\",{children:\"Using deduplication. \"}),\"This is the most counter-intuitive cause, especially as many off-the-shelf integrations feature deduplication: they send conversion events to tracking tag or pixel (for example, on a 'thank you' page) and then send customer details from the back-end with the same order id. What happens then, is ad platforms will only use one of the events you've sent, missing half of the data. Facebook's API is particularly prone to this (\",/*#__PURE__*/e(a,{href:\"https://www.ablecdp.com/blog/two-reasons-why-your-facebook-conversions-api-integration-doesnt-work\",openInNewTab:!1,smoothScroll:!1,children:/*#__PURE__*/e(\"a\",{children:\"https://www.ablecdp.com/blog/two-reasons-why-your-facebook-conversions-api-integration-doesnt-work\"})}),\").\"]})}),/*#__PURE__*/e(\"li\",{\"data-preset-tag\":\"p\",children:/*#__PURE__*/t(\"p\",{children:[/*#__PURE__*/e(\"strong\",{children:\"Only sending half of data or using different pixels for browser tracking and conversions API.\"}),\" This is similar to the deduplication issue but is often done intentionally, such as when only a tracking pixel without enhanced conversion tracking is used, or an integration service such as Zapier is used to send customer emails or click ids to the ad platform. Efficiency of such approaches varies from funnel to funnel, but generally you should be expecting to only see 30-70% of your conversions as ad platform won't have enough data to attribute them!\"]})})]}),/*#__PURE__*/e(\"p\",{children:\"Follow these three practical steps to prevent these problems:\"}),/*#__PURE__*/t(\"ol\",{style:{\"--framer-font-size\":\"16px\",\"--framer-text-alignment\":\"start\",\"--framer-text-color\":\"rgb(208, 209, 215)\",\"--framer-text-transform\":\"none\"},children:[/*#__PURE__*/e(\"li\",{\"data-preset-tag\":\"p\",children:/*#__PURE__*/e(\"p\",{children:\"Decide which of the conversions can be tracked online, and which should be sent to API. Make sure each of the conversion events is only set to the appropriate destination.\"})}),/*#__PURE__*/e(\"li\",{\"data-preset-tag\":\"p\",children:/*#__PURE__*/t(\"p\",{children:[\"If you're implementing a conversion API integration with an ad platform such as Facebook, Google or TikTok, make sure you're tracking and sending \",/*#__PURE__*/e(\"em\",{children:\"all\"}),\" data the ad platform may need to attribute the conversion: click identifiers, browser identifier from the first-party cookie used by ad platform, customer match parameters such as email. (If you chose not to use conversions API for a certain conversion - verify that it's actually getting all enhanced customer match parameters that you have available.)\"]})}),/*#__PURE__*/e(\"li\",{\"data-preset-tag\":\"p\",children:/*#__PURE__*/t(\"p\",{children:[\"Do not rely on deduplication to send additional customer data, as it tends not to work as expected. Use the same pixel in the browser and in the API to make sure all data is available to the ad platform for optimisation, but only send one conversion event twice. (Platform-specific life hack: Google Ads allows to send same conversion event via different methods but only use one for reporting and optimisation by designating it as primary conversion action, and the rest as secondary (\",/*#__PURE__*/e(a,{href:\"https://support.google.com/google-ads/answer/11461796?hl=en))\",openInNewTab:!1,smoothScroll:!1,children:/*#__PURE__*/e(\"a\",{children:\"https://support.google.com/google-ads/answer/11461796?hl=en))\"})})]})})]}),/*#__PURE__*/e(\"p\",{children:/*#__PURE__*/e(\"strong\",{children:\"Conclusion\"})}),/*#__PURE__*/e(\"p\",{children:\"With the right setup it's possible to get correct conversion data into ad platforms to analyse RoAS, compare performance of narrow audience segments and make sure you're maximising your ad returns by advertising to the right segments and letting ad platforms' AI to refine them further.\"}),/*#__PURE__*/e(\"p\",{children:\"We've covered how ad platforms conversion tracking can be used for reporting and optimisation of ad delivery and how it is beneficial to using third-party reporting tools or manually running audience segment experiments. Then, we've discussed how to fix data issues in ad platforms by sending all customer details they expect to see for attribution to either tracking pixels or conversion APIs.\"}),/*#__PURE__*/t(\"p\",{children:[\"By Pavel Titov, Able Customer Data Platform (\",/*#__PURE__*/e(a,{href:\"http://www.ablecdp.com/\",openInNewTab:!1,smoothScroll:!1,children:/*#__PURE__*/e(\"a\",{children:\"www.ablecdp.com\"})}),\") founder. Able is a next generation customer data platform created by marketers and entrepreneurs who wanted a simple and reliable way to implement first-party customer tracking in their funnels based on landing pages and web applications without having to program custom API integrations with Google and Facebook Conversion APIs, CRMs and payment systems. Able works with businesses in the SaaS, e-commerce and B2B industries, helping to seamlessly integrate data across domains and platforms, allowing for a deeper understanding of marketing strategy and customer journey.\"]})]})},{index:4,id:\"wDqtCo6gd\",[n]:\"RICE Prioritization VS MoSCoW Method: Which Is A Better Prioritization Framework\",[s]:\"RICEvs. MoSCoW method prioritization: which is better?\",[l]:\"rice-moscow-methods-prioritization-framework\",[h]:\"2022-12-16T00:00:00.000Z\",[c]:u({src:\"https://framerusercontent.com/images/uqV7kxioFysJBT0Ez9JQHLSVxPc.png\",srcSet:\"https://framerusercontent.com/images/uqV7kxioFysJBT0Ez9JQHLSVxPc.png?scale-down-to=512 512w,https://framerusercontent.com/images/uqV7kxioFysJBT0Ez9JQHLSVxPc.png 905w\"},\"\"),[d]:\"Charlie Ward\",[p]:/*#__PURE__*/t(i.Fragment,{children:[/*#__PURE__*/e(\"p\",{children:\"8 months! That\u2019s how long it took Slack to become a unicorn, probably the fastest ever in history. A big contributor to its success was the fact that Slack\u2019s founders understood the importance of prioritizing their product\u2019s unique features.\"}),/*#__PURE__*/e(\"p\",{children:\"\u200D\"}),/*#__PURE__*/e(\"p\",{children:\"They went all in on prioritization, and it paid off big time, as the company is now valued at over $27 billion.\"}),/*#__PURE__*/e(\"p\",{children:\"\u200D\"}),/*#__PURE__*/e(\"p\",{children:\"Prioritization frameworks are essential because they help product teams determine the right features to put out to increase revenue and even the customer base. They ensure that these decisions are strategic and not just based on anyone\u2019s whims.\"}),/*#__PURE__*/e(\"p\",{children:\"\u200D\"}),/*#__PURE__*/e(\"p\",{children:\"Must have, should have, could have, will not have (MoSCoW) and reach, impact, confidence, effort (RICE) are very popular frameworks that companies around the world use, but what do they mean exactly, and what do they entail?\"}),/*#__PURE__*/e(\"p\",{children:\"\u200D\"}),/*#__PURE__*/e(\"p\",{children:/*#__PURE__*/e(\"strong\",{children:\"WHAT IS RICE PRIORITIZATION?\"})}),/*#__PURE__*/e(\"p\",{children:\"\u200D\"}),/*#__PURE__*/e(\"p\",{children:\"Ever heard of Intercom? It is a software system used by Amazon, Notion, and so many other amazing companies to communicate with their customers.\\xa0\"}),/*#__PURE__*/e(\"p\",{children:\"\u200D\"}),/*#__PURE__*/e(\"p\",{children:\"But outside of providing this amazing service, Intercom also gave us the RICE prioritization framework.\"}),/*#__PURE__*/e(\"p\",{children:\"\u200D\"}),/*#__PURE__*/e(\"p\",{children:/*#__PURE__*/e(\"strong\",{children:\"Who invented the RICE model?\"})}),/*#__PURE__*/e(\"p\",{children:\"\u200D\"}),/*#__PURE__*/e(\"p\",{children:\"Intercom has a lot of competing project ideas, and it was a struggle for them to find a suitable prioritization model for their product managers, so they developed their own.\"}),/*#__PURE__*/e(\"p\",{children:\"\u200D\"}),/*#__PURE__*/e(\"p\",{children:\"With this framework, they decided to consider four factors (reach, impact, confidence, and effort) and came up with a formula for calculating and combining them. They decided that the score from this formula could be applied to any feature at any given time and be used to make an objective decision on what to prioritize.\"}),/*#__PURE__*/e(\"p\",{children:\"\u200D\"}),/*#__PURE__*/e(\"p\",{children:\"Each word in the acronym RICE is meant to answer different questions.\"}),/*#__PURE__*/e(\"p\",{children:\"\u200D\"}),/*#__PURE__*/e(\"p\",{children:\"For Reach, it is \u201Chow many people will this affect?\u201D\"}),/*#__PURE__*/e(\"p\",{children:\"\u200D\"}),/*#__PURE__*/e(\"p\",{children:\"For Impact, it is \u201Dhow much will this impact people?\u201D\"}),/*#__PURE__*/e(\"p\",{children:\"\u200D\"}),/*#__PURE__*/e(\"p\",{children:\"For Confidence, it is \u201Dhow confident are we about the Reach and Impact scores?\u201D\"}),/*#__PURE__*/e(\"p\",{children:\"\u200D\"}),/*#__PURE__*/e(\"p\",{children:\"For Effort, it is \u201Dhow difficult will this be to achieve?\u201D\"}),/*#__PURE__*/e(\"p\",{children:\"\u200D\"}),/*#__PURE__*/e(\"p\",{children:/*#__PURE__*/e(\"strong\",{children:\"How do you calculate RICE?\"})}),/*#__PURE__*/e(\"p\",{children:\"\u200D\"}),/*#__PURE__*/e(\"p\",{children:/*#__PURE__*/e(\"strong\",{children:\"Reach\"})}),/*#__PURE__*/e(\"p\",{children:\"\u200D\"}),/*#__PURE__*/e(\"p\",{children:/*#__PURE__*/e(\"br\",{className:\"trailing-break\"})}),/*#__PURE__*/e(\"p\",{children:\"\u200D\"}),/*#__PURE__*/e(\"p\",{children:\"The very first thing you need to determine with RICE is the reach score. The reach score is an estimate of the number of people you will affect by implementing a feature in a given timeframe.\\xa0 How much impact a feature will have on the company\u2019s revenue. The time frame can be one month, a quarter, or a year, while the effect can refer to the number of customer transactions or signs up you can get from a new feature.\"}),/*#__PURE__*/e(\"p\",{children:\"\u200D\"}),/*#__PURE__*/e(\"p\",{children:\"For example, if you expect that implementing a new feature will lead to 100 new customers within the next quarter, your reach score is 100.\\xa0\"}),/*#__PURE__*/e(\"p\",{children:\"\u200D\"}),/*#__PURE__*/e(\"p\",{children:\"With reach, if you have a feature idea that will affect everyone who signs up and another idea that will only affect 5% of signups, then the first idea has a higher reach and should be prioritized.\"}),/*#__PURE__*/e(\"p\",{children:\"\u200D\"}),/*#__PURE__*/e(\"p\",{children:\"These estimated numbers are usually gotten through external surveys or by looking through existing statistics, but it can really be hard to calculate reach if there are no existing users or statistics to look out for.\\xa0\"}),/*#__PURE__*/e(\"p\",{children:\"\u200D\"}),/*#__PURE__*/e(\"h3\",{children:/*#__PURE__*/e(\"strong\",{children:\"Impact\"})}),/*#__PURE__*/e(\"p\",{children:\"\u200D\"}),/*#__PURE__*/e(\"p\",{children:/*#__PURE__*/e(\"br\",{className:\"trailing-break\"})}),/*#__PURE__*/e(\"p\",{children:\"\u200D\"}),/*#__PURE__*/e(\"p\",{children:\"The impact score calculates your new feature's impact on your users. How is it different from reach? 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It is important because it helps you avoid bias and make decisions that are not based on fact. With confidence, if your reach score is based on statistics and data while your impact score is steeped in a \u201Cgut feeling,\u201D it helps you decide whether to prioritize a feature.\"}),/*#__PURE__*/e(\"p\",{children:\"\u200D\"}),/*#__PURE__*/e(\"p\",{children:\"Intercom also created a tiered system to score confidence, so that product teams wouldn\u2019t get stuck trying to figure out which exact percentage gives them the go-ahead. For confidence, 100% represents high confidence, 80% represents medium confidence and 50% equals low confidence.\"}),/*#__PURE__*/e(\"p\",{children:\"\u200D\"}),/*#__PURE__*/e(\"p\",{children:\"If you land on a score lower than 50%, then you shouldn\u2019t be prioritizing that feature.\"}),/*#__PURE__*/e(\"p\",{children:\"\u200D\"}),/*#__PURE__*/e(\"p\",{children:\"Confidence scores should be rooted in data from users like research feedback, experimentation results, and the success or failure of rough models.\"}),/*#__PURE__*/e(\"p\",{children:\"\u200D\"}),/*#__PURE__*/e(\"p\",{children:/*#__PURE__*/e(\"strong\",{children:\"Effort\"})}),/*#__PURE__*/e(\"p\",{children:\"\u200D\"}),/*#__PURE__*/e(\"p\",{children:/*#__PURE__*/e(\"br\",{className:\"trailing-break\"})}),/*#__PURE__*/e(\"p\",{children:\"\u200D\"}),/*#__PURE__*/e(\"p\",{children:\"Reach, Impact, and Confidence are measures of the potential benefits an idea will have towards a specific goal, but with Effort, the negative impact is measured. Effort measures how much time a project will take, and is an estimate of the amount of work one team member can do within a given time frame.\"}),/*#__PURE__*/e(\"p\",{children:\"\u200D\"}),/*#__PURE__*/e(\"p\",{children:\"For example, if a project requires 3 different people to work on it for a week, that would bring about an effort score of 3 people per week.\\xa0\"}),/*#__PURE__*/e(\"p\",{children:\"\u200D\"}),/*#__PURE__*/e(\"p\",{children:\"Effort makes it easy to prioritize projects that may run for less than the entire quarter or cycle that you're planning for. But in order to come up with the right estimate, you have to work hand in hand with the people involved in building your new feature, like software engineers and tech leads.\"}),/*#__PURE__*/e(\"p\",{children:\"\u200D\"}),/*#__PURE__*/e(\"p\",{children:\"Working with these people ensures that your effort score is driven by the complexity of the project and the reality of the existing technical systems.\"}),/*#__PURE__*/e(\"p\",{children:\"\u200D\"}),/*#__PURE__*/e(\"p\",{children:/*#__PURE__*/e(\"strong\",{children:\"What you should remember about the RICE Prioritization Framework.\"})}),/*#__PURE__*/e(\"p\",{children:\"\u200D\"}),/*#__PURE__*/e(\"ol\",{style:{\"--framer-font-size\":\"16px\",\"--framer-text-alignment\":\"start\",\"--framer-text-color\":\"rgb(208, 209, 215)\",\"--framer-text-transform\":\"none\"},children:/*#__PURE__*/e(\"li\",{\"data-preset-tag\":\"p\",children:/*#__PURE__*/e(\"p\",{children:\"The formula for calculating the RICE Score is\"})})}),/*#__PURE__*/e(\"p\",{children:\"\u200D\"}),/*#__PURE__*/e(\"p\",{children:\"Rice \\xd7 Impact \\xd7 Confidence\\xa0\"}),/*#__PURE__*/e(\"p\",{children:\"\\xa0\\xa0\\xa0\\xa0\\xa0\\xa0\\xa0\\xa0\\xa0\\xa0\\xa0\\xa0\\xa0\\xa0\\xa0\\xa0\\xa0\\xa0\\xa0\\xa0\\xa0\\xa0\\xa0\\xa0\\xa0\\xa0\\xa0\\xa0\\xa0\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\\xa0 \\xa0 \\xa0 = RICE SCORE\"}),/*#__PURE__*/e(\"p\",{children:\"Effort\"}),/*#__PURE__*/e(\"p\",{children:\"\u200D\"}),/*#__PURE__*/e(\"ol\",{start:\"2\",style:{\"--framer-font-size\":\"16px\",\"--framer-text-alignment\":\"start\",\"--framer-text-color\":\"rgb(208, 209, 215)\",\"--framer-text-transform\":\"none\"},children:/*#__PURE__*/e(\"li\",{\"data-preset-tag\":\"p\",children:/*#__PURE__*/e(\"p\",{children:\"For the RICE prioritization framework to be effective, every estimation must be steeped in data and collaboration between all stakeholders.\"})})}),/*#__PURE__*/e(\"p\",{children:\"\u200D\"}),/*#__PURE__*/e(\"ol\",{start:\"3\",style:{\"--framer-font-size\":\"16px\",\"--framer-text-alignment\":\"start\",\"--framer-text-color\":\"rgb(208, 209, 215)\",\"--framer-text-transform\":\"none\"},children:/*#__PURE__*/e(\"li\",{\"data-preset-tag\":\"p\",children:/*#__PURE__*/e(\"p\",{children:\"The same scoring scale must be used throughout when measuring Reach, Impact, Confidence, and Effort.\\xa0\"})})}),/*#__PURE__*/e(\"p\",{children:\"\u200D\"}),/*#__PURE__*/e(\"p\",{children:/*#__PURE__*/e(\"strong\",{children:\"What Is The MoSCoW Method?\"})}),/*#__PURE__*/e(\"p\",{children:\"\u200D\"}),/*#__PURE__*/e(\"p\",{children:/*#__PURE__*/e(\"br\",{className:\"trailing-break\"})}),/*#__PURE__*/e(\"p\",{children:\"\u200D\"}),/*#__PURE__*/e(\"p\",{children:\"The MoSCoW method is an acronym for must-have, should-have, could-have, and will not have, and it is a technique used to clarify which features to prioritize when working on a project/product. It is also known as MoSCoW prioritization or MoSCoW analysis.\"}),/*#__PURE__*/e(\"p\",{children:\"\u200D\"}),/*#__PURE__*/e(\"p\",{children:\"It is applied at the beginning of a project and helps align a team around its values and expectations. It also really helps with visualizing tasks required and meeting their important requirements.\"}),/*#__PURE__*/e(\"p\",{children:\"\u200D\"}),/*#__PURE__*/e(\"p\",{children:/*#__PURE__*/e(\"strong\",{children:\"Who Invented the MoSCoW Method?\"})}),/*#__PURE__*/e(\"p\",{children:\"\u200D\"}),/*#__PURE__*/e(\"p\",{children:\"The MoScoW method was created in 1994 by a software developer called Dai Clegg, who used to work at Oracle. But it began to gain momentum in the early 2000s, and since then, a lot of companies leading the market have used the MoSCoW method to align their teams on different projects.\"}),/*#__PURE__*/e(\"p\",{children:\"\u200D\"}),/*#__PURE__*/e(\"p\",{children:/*#__PURE__*/e(\"strong\",{children:\"Must Have\"})}),/*#__PURE__*/e(\"p\",{children:\"\u200D\"}),/*#__PURE__*/e(\"p\",{children:\"For this category, you have to ask yourself what features are absolutely essential for the completion and success of your project. These are features that are non-negotiable, and you can\u2019t do without\\xa0\"}),/*#__PURE__*/e(\"p\",{children:\"\u200D\"}),/*#__PURE__*/e(\"p\",{children:\"Everything that will be placed under this category must meet the Minimum Usable Subset (MUST). To determine what falls under MUST.\\xa0\"}),/*#__PURE__*/e(\"p\",{children:\"It must meet the following criteria:\"}),/*#__PURE__*/e(\"p\",{children:\"\u200D\"}),/*#__PURE__*/t(\"ul\",{style:{\"--framer-font-size\":\"16px\",\"--framer-text-alignment\":\"start\",\"--framer-text-color\":\"rgb(208, 209, 215)\",\"--framer-text-transform\":\"none\"},children:[/*#__PURE__*/e(\"li\",{\"data-preset-tag\":\"p\",children:/*#__PURE__*/e(\"p\",{children:\"You can\u2019t replace it or find a workaround for this feature.\"})}),/*#__PURE__*/e(\"li\",{\"data-preset-tag\":\"p\",children:/*#__PURE__*/e(\"p\",{children:\"You are breaking some kind of policy or law by not including this feature.\"})}),/*#__PURE__*/e(\"li\",{\"data-preset-tag\":\"p\",children:/*#__PURE__*/e(\"p\",{children:\"Without this feature, there\u2019s no point in even trying to complete your project.\"})}),/*#__PURE__*/e(\"li\",{\"data-preset-tag\":\"p\",children:/*#__PURE__*/e(\"p\",{children:\"Your product will be unsafe without this feature.\"})}),/*#__PURE__*/e(\"li\",{\"data-preset-tag\":\"p\",children:/*#__PURE__*/e(\"p\",{children:\"Your solution will not solve any problems with this feature.\"})})]}),/*#__PURE__*/e(\"p\",{children:\"\u200D\"}),/*#__PURE__*/e(\"p\",{children:\"You must also ask yourself when trying to file anything under \u201CMust Have\u201D what happens if this feature is not created? If there are no real consequences, it\u2019s probably a should-have or a nice to have.\"}),/*#__PURE__*/e(\"p\",{children:\"\u200D\"}),/*#__PURE__*/e(\"p\",{children:/*#__PURE__*/e(\"strong\",{children:\"Should Have\"})}),/*#__PURE__*/e(\"p\",{children:\"\u200D\"}),/*#__PURE__*/e(\"p\",{children:\"Features that are not really critical to this project fall under this category. They are often features that might help the functionality and usability of a product, but are not necessarily required by the next launch date.\"}),/*#__PURE__*/e(\"p\",{children:\"\u200D\"}),/*#__PURE__*/e(\"p\",{children:\"If you were creating a file hosting application, the ability to share your uploaded files will be a Should-Have not a Must-Have. This is because the main product offering of a file hosting application is storing files on a remote server and viewing them later.\\xa0\\xa0\"}),/*#__PURE__*/e(\"p\",{children:\"\u200D\"}),/*#__PURE__*/e(\"p\",{children:\"Another great example of a Should-Have will be performance improvements if a feature is already functional.\"}),/*#__PURE__*/e(\"p\",{children:\"\u200D\"}),/*#__PURE__*/e(\"p\",{children:\"A good way to determine if you should classify your feature under Should Have is to ask yourself, \u201CLeaving this feature out will be painful, but will the end product still be viable?\u201D\"}),/*#__PURE__*/e(\"p\",{children:\"\u200D\"}),/*#__PURE__*/e(\"p\",{children:/*#__PURE__*/e(\"strong\",{children:\"Could Have\"})}),/*#__PURE__*/e(\"p\",{children:\"\u200D\"}),/*#__PURE__*/e(\"p\",{children:\"Could Have features are generally features that are nice to have.\\xa0\"}),/*#__PURE__*/e(\"p\",{children:\"These features do not directly impact the core functionality of the product and are most times negligible. They are the features that you create when you have finished the Must-Have and Should Have and have a little time left.\\xa0\"}),/*#__PURE__*/e(\"p\",{children:\"\u200D\"}),/*#__PURE__*/e(\"p\",{children:\"Most times, these features can contribute greatly to the success of the product, but consumers might not also miss them if they were not there.\"}),/*#__PURE__*/e(\"p\",{children:\"\u200D\"}),/*#__PURE__*/e(\"p\",{children:\"Another to judge Could Have is by asking if you can sacrifice these features when a product launch is already behind schedule.\"}),/*#__PURE__*/e(\"p\",{children:/*#__PURE__*/e(\"strong\",{children:\"Will Not Have\"})}),/*#__PURE__*/e(\"p\",{children:\"\u200D\"}),/*#__PURE__*/e(\"p\",{children:\"The \u201CWill Not Have category\u201D contains features that absolutely will not be created, or at least will not be created right now. The features that fall under this category are usually not important to the success or viability of the final product.\\xa0\"}),/*#__PURE__*/e(\"p\",{children:\"\u200D\"}),/*#__PURE__*/e(\"p\",{children:\"These Will Not Have can be marked and prioritized at the second iteration of the product release or added to the to-do list of a future release.\"}),/*#__PURE__*/e(\"p\",{children:\"\u200D\"}),/*#__PURE__*/e(\"p\",{children:\"What\u2019s great about the \u201Cwill not have category\u201D is that it tells you where not to focus.\"}),/*#__PURE__*/e(\"p\",{children:\"\u200D\"}),/*#__PURE__*/e(\"p\",{children:/*#__PURE__*/e(\"strong\",{children:\"Which is the better prioritization framework?\"})}),/*#__PURE__*/e(\"p\",{children:\"\u200D\"}),/*#__PURE__*/e(\"p\",{children:\"These two frameworks are used at completely different times. 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