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How Can We Really Measure The ROI of Optimization?

ConversionXL

Another scenario: you’ve been optimizing for 12 months and your revenue per customer has increased by 2%. How can you tell what caused that – optimization, SEM, seasonality, word-of-mouth, or something else? If you’re not optimizing 10%, you’re (maybe) missing out on increased revenue. Press (positive or negative).

PPC 48
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Cracking The Code: Unveilling of the Bessemer's 10 laws of Cloud.

Cracking the Code

Cloud accounting is all about matching revenue and costs to consumption…well, except for professional services! Your caution in Law 6 about over-estimating the impact of SEM and other lead-generation activity is particularly astute. ► 2007. (10). Best Venture and Technology Podcasts for 2007. Mind the GAAP!

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Startup Killer: the Cost of Customer Acquisition | For Entrepreneurs

www.forentrepreneurs.com

Far more common is a need to acquire customers through a series of steps like SEO, SEM, PR, Social Marketing, direct sales, channel sales, etc. It appears that LTV should be about 3 x CAC for a viable SaaS or other form of recurring revenue model. What is Twitter hadn't gone to SXSW in 2007? This is a mistake.

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Cracking The Code: The Bessemer 10 laws of SaaS - Fall 2008.

Cracking the Code

Be prepared to cross the desert - SaaS requires R&D and sales expense up front for a multi-year stream of revenue, so it demands enough investment capital to fund 4+ years of runway. Farming is also often overlooked, but can help grow customer accounts and revenues from 30% upwards (if successful). Great list! Philippe Botteri.