
Explore unit economics as the glue between marketing, product, and finance, analyze metrics and funnels, calculate cac and ltv, and test hypotheses to optimize growth.
Kick off your professional certificate in digital business with a welcome to MTF, introducing core ideas in unit economics.
Distinguish vanity metrics from important metrics that drive revenue and growth, focusing on customers, unit economics, and service quality. Learn run rate and MRR definitions to gauge growth and runway.
Explore how funnels map the journey from prospect to customer, detailing top, middle (MQL/SQL), and bottom stages, and how bottlenecks guide bottom-up improvements.
Define unit economics as the profitability of one unit, usually a client, and explore metrics like CAC, ARPU, CPA, LTV, churn, and retention to assess acquisition and payback.
Apply unit economics to a digital product by tracing the black box from user acquisition to revenue, using CPA, CAC, ARPU, ARPPU, and C1.
Analyze two SaaS funnel case studies to compute acquisition cost, assess bottlenecks, and show how improving cost per click and conversions lowers CAC toward a viable payback.
Explore a case study of a promo code launch in a mental health marketplace, analyzing influencer promos, conversion stages and end-to-end payback, and evaluating unit economics.
Compute the lifetime value (ltv) using arpu and lifespan, assess churn and retention rates, and compare ltv to cac to judge payback and overall unit economics.
Explore cohorts to analyze unit economics and customer lifetime value, comparing absolute and relative cohorts to reveal retention patterns and product impact on revenue.
Forecast revenue from cohorts by revenue to calculate specific-period LTV, compare cohorts, and optimize payback by aligning acquisition cost with three-, six-, or twelve-month LTV.
Choose metrics by aligning with a clear goal and questions, then generate hypotheses and test them to improve unit economics; use omtm and north star to guide focus.
recap highlights unit economics as the bridge between product, marketing, and ceo, and emphasizes questions on acquisition cost, revenue per client, ltv, funnels, and cohort forecasting.
Explore how digital channels extend your presence from local to global markets with delivery and partnerships. Analyze the full value chain to enable self-service and white-label models.
Explore B2C channels and omnichannel experiences across websites and apps, align marketing with design to track campaigns, optimize conversion through seamless multi-stage customer journeys.
Explore how B2B channels tailor interfaces to partners, balancing API, mobile, and web access with document recognition, data checks, and payments. Emphasize evaluating partner needs, integration options, and risk diversification.
Align core systems with a middle-layer API to deliver tailored B2C, B2B, and manager interfaces. Track client interactions, marketing history, and profitability to increase sales while reducing internal costs.
Decide whether to build in-house or outsource, protect your know-how, and monetize through platformization, white label solutions, marketplaces, and consulting.
Analyze profit and loss by channel and apply price models for mobile, web, and partners. Explore discounts, incentive schemes, price sensitivity, A/B testing, and risk based pricing to optimize journey.
Explore digital funnels, data by stage, and user interface, and see how design choices shape the sales funnel, customer journey, and conversion metrics.
Welcome to course Professional Certificate: Digital Business & Unit Economics by MTF Institute
Course provided by MTF Institute of Management, Technology and Finance
MTF is the global educational and research institute with HQ at Lisbon, Portugal, focused on business & professional hybrid (on-campus and online) education at areas: Business & Administration, Science & Technology, Banking & Finance.
MTF R&D center focused on research activities at areas: Artificial Intelligence, Machine Learning, Data Science, Big Data, WEB3, Blockchain, Cryptocurrency & Digital Assets, Metaverses, Digital Transformation, Fintech, Electronic Commerce, Internet of Things.
MTF is the official partner of: IBM, Intel, Microsoft, member of the Portuguese Chamber of Commerce and Industry.
MTF is present in 208 countries and has been chosen by more than 400 000 students.
Digital Transformation: Digital transformation refers to the integration of digital technology into all areas of a business, fundamentally changing how it operates and delivers value to customers. It involves leveraging digital technologies such as cloud computing, artificial intelligence, data analytics, Internet of Things (IoT), and others to streamline processes, enhance customer experiences, and drive innovation. Digital transformation isn't just about adopting new technologies; it's about reimagining business models and processes to stay competitive in the digital age.
Digital Business Development: Digital business development focuses on utilizing digital technologies and strategies to expand a company's reach, improve its products or services, and increase revenue streams. It involves activities such as digital marketing, e-commerce, online partnerships, and digital product innovation. Digital business development aims to capitalize on the opportunities presented by the digital landscape to grow the business and create new value for customers.
Unit economics is a fundamental concept in business that focuses on understanding the direct revenues and costs associated with a particular business model or product at a per-unit level. These "units" can be customers, orders, products, or any other relevant metric. Analyzing unit economics helps companies and experts assess the sustainability and profitability of their operations.
Here's why learning about unit economics is crucial for both experts and companies:
Sustainability and Profitability Assessment: Unit economics provide a clear view of whether a business is sustainable and profitable. By examining the revenue generated and the costs incurred on a per-unit basis, experts and companies can evaluate if they are making money or losing it with each sale or customer acquisition.
Scaling Decisions: Understanding unit economics is vital for making informed decisions about scaling a business. If the cost to acquire a customer is higher than the revenue generated from that customer over time, it may not be sustainable to scale the business without making changes.
Business Model Optimization: Unit economics analysis allows experts and companies to identify areas for optimization. It helps in finding cost-effective ways to acquire and retain customers, reduce operational costs, and increase average revenue per unit.
Investor Confidence: For startups and growing companies, demonstrating positive unit economics is often essential to attract investors. It shows that the business model is sound and has the potential for long-term profitability.
Risk Management: By understanding unit economics, companies can identify potential risks early. If the per-unit cost is too high, it may lead to financial instability or bankruptcy in the long run.
Pricing Strategies: Unit economics are key in setting appropriate pricing for products or services. Companies can determine the right balance between pricing and costs to maximize profitability.
Strategic Decision-Making: Business decisions related to product development, marketing campaigns, and resource allocation should be guided by a deep understanding of unit economics. It helps in focusing resources on high-impact areas.
Developing skills related to unit economics can be highly beneficial for building a career in various fields, including business, finance, and entrepreneurship:
Entrepreneurship: Entrepreneurs who understand unit economics can create and refine business models that are more likely to succeed. This knowledge is crucial for securing funding and effectively managing their startups.
Finance and Investment: Professionals in finance and investment need to evaluate the financial health of companies. An understanding of unit economics helps them assess the viability of potential investments.
Marketing and Sales: Marketers can make informed decisions about customer acquisition channels and campaigns based on the cost to acquire a customer and the customer's lifetime value. Sales teams can prioritize high-value leads.
Operations and Supply Chain Management: Professionals in operations and supply chain management can optimize processes, reduce costs, and improve efficiency by analyzing the unit economics of production and distribution.
Consulting and Advisory Roles: Consultants and advisors who can help companies optimize their unit economics are highly sought after. They can provide valuable insights and recommendations.
Unit economics is a critical aspect of business strategy and financial analysis. Learning about unit economics is essential for making informed decisions, ensuring a sustainable business model, and building a successful career in various fields related to business and finance.
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