The challenge
Palladium was asked to investigate the defensibility of a stock imagery business and the importance the freemium business model has in creating a moat and network effects.
Our approach
- Visualised the flywheel effect of the freemium business model and the impact different levers have on network effectsReviewed unit economics of the freemium offering, to establish the impact and value over customer lifetime
- Identified key drivers of success and the defensibility of them
- Deep dive into the four SEO pillars and their link to the rare flywheel effect
- Analysed the performance of unit economics (LTV/CAC) and the implications they have on the marketing budget and profitable growth
- Analysed the feasibility of new customer acquisition targets, and whether it is possible to achieve them if the paid channel is not economically viable
- Analysed team capabilities and gaps
The result
- Validated the strong digital performance that allows the business to compete with much more established competitors
- Identified that the business plan has unrealistic assumptions about the role paid marketing can play in achieving profitable growth
- Summarised recommendations for the business to achieve its full potential
