You Don’t Have To Make Money On Every Customer

Ravi Parikh — June 23, 2014 — Here’s an obvious statement: if you spend more to acquire a customer than that customer is worth, then all you’re doing is accelerating your path to bankruptcy. Any business at scale should mostly engage in sales or marketing practices that have… Read More

How Much Should I Discount For Prepaid SaaS Contracts?

Ravi Parikh — June 9, 2014 — Most software-as-a-service (SaaS) products are billed on a monthly basis. But many offer discounts for one year or two year upfront commitments. A few examples: Optimizely - 10% off for a 1 year commitment, 25% off for 2 years Olark - 10% off… Read More

Using Data to Simplify Your Product

Ravi Parikh — June 2, 2014 — Building new features is fun. There are few things more exciting than imagining the myriad possibilities of your product, and making those possibilities happen. But it’s often just as important to remove unneeded features. Why remove a feature? Even the simplest features… Read More

Utility Theory and “Deal Or No Deal”

Ravi Parikh — May 14, 2014 — Deal Or No Deal was a popular game show that ran for a few seasons in the US, UK, and other countries. If you're not familiar with the game, here's how it works: There are several sealed suitcases, each containing a different amount… Read More

Garbage In, Garbage Out: How Anomalies Can Wreck Your Data

Ravi Parikh — May 7, 2014 — A 1960 census reported a shocking fact: several teenage women across the United States had 12 or more children each. These were women aged 19 or younger who already had massive families. As it turns out, this never happened. The truth was that… Read More