Target Problem

As shown in Figure 3, to have a scaling business model, we need to overcome two problems: first, we need to grow our customer base exponentially, and second, we need to scale our operations at the same pace. And this has to be done at linear cost and duration.

Figure 3. Scalable Business Model

As explained in the introduction, our factory platform generates elegant custom apps at significantly low prices to address the second scaling problem.

Sales Process

To address the second scaling problem, we first need to understand our sales process. As shown in Figure 4, our sales pipeline consists of three phases:

1. Lead: A customer considers building their app with Apsy.

2. Prospect: A customer shows up on a 30-min discovery session.

3. Deal: A customer signs the contract.

Figure 4. Sales Pipeline

Two costs are involved in our sales process:

1. Cost of finding leads

2. Cost of converting leads to customers

Based on our experience, neither digital marketing nor direct sales are effective in eliminating the first cost. As shown in Figure 5, after running Google Ads for a few weeks, we observed only a tiny percentage of a large number of website visitors turn up on the discovery session. However, 100% of the direct leads - coming to us after some initial introduction or referrals - turn up, and a high percentage of them turn into customers. This problem with this approach is the high cost and low growth of this channel. Since we need to spend time on the introductions and referrals, we do not gain exponential growth.

TRUST & AWARENESS	The low turn up from digital marketing and high turn up from direct sales can be attributed to trust and brand awareness as the main factors customers consider when deciding who should build their apps.

Figure 5. Channel Performance