Definition
Ramp is the pace at which customers grow into paid usage after signing up.
Why it matters
Ramp speed affects payback period and revenue forecasting. Slow ramp extends payback and increases risk.
Pricing implications
If ramp is slow, use longer trials or lower entry tiers. If ramp is fast, higher base fees may be feasible.
Measurement tips
Track usage growth by cohort month to estimate ramp curves.
Checklist
- Measure ramp by cohort and segment.
- Separate trial ramp from paid ramp.
- Use ramp in CAC payback modeling.
- Align tier thresholds with expected ramp.
- Monitor ramp after pricing changes.
- Avoid assuming instant full usage.
- Document ramp assumptions in models.
- Review ramp quarterly.