Rate Of Adoption

Categories: Marketing, Metrics

New minus Old, all over Old. That's the magic formula in calculating rate of adoption problems.

Male teens in Florida, aged 13-18, have downloaded your app, GatorMeat, a new bodybuilding program. You estimate that there are a million targets in your market. Last month, only 10,000 units had been downloaded. And 3 months later, 40,000 were downloaded. Your adoption rate went from 1% of the market to 4% in only 3 months. Feel the burn.

Related or Semi-related Video

Econ: What is Utilization Rate?1 Views

00:00

And finance Allah shmoop What is utilization rate Thie utilization

00:08

rate allows you to track how much you use something

00:11

the rate of use A rate of utilization Very cleverly

00:14

named All right people You're a connoisseur of nose hair

00:16

grooming You have a display case full of nose hair

00:19

clippers Most are collector's items just on display there looking

00:23

good there on the glass you know so you can

00:25

impress your fellow knows grooming hobbyists Well you want to

00:28

figure out utilization rates for each of your main clippers

00:31

That way you can report the numbers for the fans

00:34

of your popular Blawg the sniffer snipper Well there are

00:37

three clippers that you use for day to day nostril

00:40

Curation what Monday through Thursday you used the clip tastic

00:43

five thousand It's a turbocharged industrial model originally developed during

00:47

the Cold War to close the nose hair gap with

00:49

the USSR Well it gets the job done efficiently without

00:52

much wear and tear Perfect for the work week Well

00:55

Friday and Saturday you use the Sheikh Shaper X nine

00:59

popular with Instagram models and French politicians It gives a

01:02

much finer more alluring cut perfect for date night or

01:06

clubbing you know with your crew Sunday requires a more

01:09

Jim You're cut something more reflective more relaxed It's time

01:12

for the with whisper blew It provides a slow comfortable

01:16

trimming experience Well those air the clippers you use on

01:19

a regular basis time to determine utilization rates you use

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the clip tastic five thousand forty's Week Monday Tuesday Wednesday

01:26

Thursday there seven possible day so utilization right here's four

01:29

divided by seven are about fifty seven percent used The

01:32

sheik Shaper X nine two days a week Friday and

01:34

Saturday two out of seven twenty nine percent And the

01:36

whiff whisper only gets use once a week one out

01:39

of seven on the rate they're fourteen percent In real

01:42

life businesses can use the utilization rate to see how

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efficiently they're using Their resource is like What if they

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had a tractor smelter thing that was just sitting there

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Not used four days a week But they may be

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rented to another tractor smelter and make more money Something

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like that Well really businesses can figure out how much

01:58

they operate equipment see if they have additional slack to

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ramp up production And in that slack sometimes they can

02:04

run it out or do everything's with it and make

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a fortune And if that's not the case well then

02:07

they can use it as an employee evaluation tool Like

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by looking at a worker's utilization rate a company can

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see if their employees time is getting applied effectively like

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one cashier only processes one hundred twelve grocery store shoppers

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a day But everyone else processes at least one hundred

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eighty then it's likely she's probably spending social hour too

02:27

often with her customers yapping them about their purchases right

02:31

Okay well so you start a nose clipper consultancy business

02:35

to take advantage of your vast knowledge of the industry

02:38

You contract your services to manufacturers test their products and

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advise them on various high level Clipper related problems You

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work forty hours a week but only twenty two of

02:47

those hours are pay billable hours working for clients The

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rest of the time you're working on well marketing and

02:53

processing billing and watching YouTube videos about the history of

02:57

nose hair So you stay current on the industry so

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that's twenty two of forty hours working with clients are

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billing them for your time That's a utilization rate ofyour

03:06

time We're actually being paid for it of fifty five

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percent Probably some room for improvement there right You really

03:12

need all that research Could you get more clients to

03:15

then Bill Okay so maybe it's time to switch to

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the Sheik shaper for work days It will get you

03:20

that more impressive cut for client meetings Yeah How'bout that

03:23

Hopefully you'll be able to jack up those billable hours

03:25

Increase the utilization rate for the sheik shape or to

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eighty six percent Pretty much every day but Sunday Yeah

03:29

that'd be big Then maybe you can get your billable

03:32

hours utilization right above sixty percent Right You make a

03:34

lot more money If you do that after all a

03:36

few more clients And then you can afford a few

03:38

more collector clippers in the display case here Like the

03:40

Clipper Lincoln used before giving the Gettysburg or the Clipper

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that Neil Armstrong took to the moon Remember the quote

03:46

One small clip for man You know something like that

Find other enlightening terms in Shmoop Finance Genius Bar(f)