Deezer · B2C · music streaming app
Let your ad team test risky ideas as long as overall return stays profitable
LTV:CAC more than doubled in 2 years while volume grew
Workedexperimentationteam-process
What they did
Team is expected to test constantly (new channels, audiences, campaigns), report failures honestly and extract learnings; failure is never blamed, not trying is. Tests are tightly framed so total risk is limited, and success is judged on the overall LTV:CAC: as long as the whole program is profitable, losing money on individual tests is acceptable. Year-end review compares biggest fails with biggest wins; wins always outweighed fails. Required countering a French cultural fear of failure.
What happened
LTV:CAC more than doubled in two years while scaling volumes; guest names testing as the main factor (along with cross-team collaboration).
- Stage
- scale
- Effort
- Ongoing over at least two years
This shipped together with other changes, so the result can't be credited to this alone.
In their words
Sub Club by RevenueCat · Level Up Your App Marketing: Measurement, Brand-Building, and Taking Risks — Sherina Khalidi, Deezer“what we see is that wins always compensate for fails.”
“As long as overall we are profitable, it's okay to test stuff and indeed lose money.”
“but the main factor that helped us really scale while improving our profitability is all the tests that we ran.”
Related topics
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