Here are the reasons usually given for why investors don’t do dating: Let’s break it down.
Every churned customer is a new customer you’ll have to acquire just to get back to even.
When you look at a successful subscription service like Netflix or Hulu, you might find a churn rate of 2-5% per month, and you can calculate the annual churn through the following: If you have an 70% annual churn rate, you have to have a strategy to replace almost your entire customer base each year, plus a bunch of percentage points to drive topline growth.
Another way to say this is the dating has “intent” the same way that shopping might, especially when you are talking about a paid subscription service.
This limits the market size as well as restricting the types of marketing channels you can use to read those consumers.
Patching this method with an algorithm that works best for large probability edges (plus some additional ideas) leads to our improved approximation factors.