ConversionXL

OCTOBER 7, 2022

Customer acquisition cost (CAC) is an important metric for any ecommerce business. Put simply, you need a healthy customer acquisition cost for your business to succeed. It’s up to every ecommerce business to find the middle ground between investing too little in customer acquisition and spending beyond your means.

Acquisition 22

Acquisition eCommerce Cost Customer 22

David Teten

AUGUST 6, 2015

It’s misleadingly precise to have two digits to the right of the decimal in a CAC/LTV multiple for year 3 of your forecast (“Customer Acquisition Cost”/”LifeTime Value of Customer”). A good model needs to factor in cash collections, disbursements, and other working capital considerations with a Balance Sheet and Statement of Cash Flows.

Balance Sheet 60

Balance Sheet Software Review Forecast Acquisition 60

David Teten

DECEMBER 16, 2015

For early stage companies, the metrics that matter might typically center around activation, engagement and retention. Customer Acquisition Cost (CAC). Paul took on this initiative after realizing how alarmingly little a P&L and Balance Sheet alone can tell you about what’s really happening at a startup.

Metrics 60

Metrics Analytics Balance Sheet .Net 60

YoungUpstarts

MAY 23, 2017

Then design, propose and get concurrence on the specific ways you will deliver their personal win and fulfill the hidden and unique motivations that are often not found on contracts, income statements and balance sheets. Demonstrate Your Reliability. Be unreasonably accountable when the unexpected happens.

Balance Sheet 122

Balance Sheet Seattle Retention LLC 122

Steve Blank

MARCH 4, 2014

(A consequence of using these corporate finance metrics like RONA and IRR is that it ‘s a lot easier to get these numbers to look great by 1) outsourcing everything, 2) getting assets off the balance sheet and 3) only investing in things that pay off fast. Corporate KPI’s, Policy and Procedures: Innovation Killers.

IRR 335

IRR Startup Business Model Agile 335

Both Sides of the Table

JUNE 17, 2017

If you don’t have a strong balance sheet and can’t hire more people that’s fine — but understand this may lead to slower growth. They got a bigger office space so their employees would feel comfortable and they could improve employee retention. Thus the trade off between profits & growth.

Stock Options 227

Stock Options Startup Dilution Venture Capital 227

Occam's Razor

MAY 2, 2017

#tearsofpain One way of removing silos and focusing on the entire business is to leverage Acquisition, Behavior and Outcome metrics. A small change I’ll make in this post is that when I recommend the metrics, I’ll follow the Outcomes | Behavior | Acquisition structure throughout this post. Hence that’s the macro-outcome.

Metrics 141

Metrics Acquisition eCommerce Analytics 141