Can you actually grow faster by acquiring less users?

I see some product-led businesses that would grow faster by acquiring less users. More isn't always better.

This typically happens by accident. When a company hires a growth lead, but doesn't give them product dev resources. They get blocked out. So, they focus where they can make an impact outside of the product.

They work on improving the websites conversion rate.

So they remove friction
And increase social proof
They make it seem like you'd be crazy not to sign up, like right now
They make it easier to sign up
And easier
And easier

They start acquiring a lot of new users. Their conversion rates look juicy and everyone celebrates... until a few months pass.

The new users aren't growing the customer base. Or the active free population. Many of them sign-in, poke around, then churn and never come back.

To be clear, this isn't an onboarding problem. It's an acquisition problem. They've acquired low quality users.

These people signed up too soon. Without the right context. Before they understand what the product is. What it does. And what's included/not included in the plan.

I've seen this happen multiple times. When companies try to shortcut the signup process.

So how do you fix it? A few ideas.

1. Educate people more about the product, it's value, and what they're signing up for. Add clarity & transparency. Make sure people see it - before they sign up.

2. Create a "try before you buy" experience for people to play with the product BEFORE any forms. Allow users to understand and experience the core value.

Both these ideas will decrease your total monthly signups. But your high quality signups will increase. You'll see retention improve. Active free accounts increase. And you'll see your purchases go up.

If you're struggling with poor activation and retention rates - you might be too good at acquiring users. It's a thing.