A Smart Bear: Startups and Marketing for Geeks

JULY 23, 2013

So no, this upside-down business model isn’t what a SaaS business should construct. Even with a great retention rate (e.g. time to earn back the revenue to cover all your customer acquisition expenses) 75% annual retention. Drastically reduce the cost of customer acquisition.

Business Model 335

Business Model .Net Revenue IPO 335

Startup Professionals Musings

JULY 9, 2017

An effective tool I see used more and more, as a prelude to a more detailed business plan, is the Business Model Canvas , first introduced by Alexander Osterwalder back in 2008. In my experience as a new business advisor, a business is nothing until people are aligned and work in sync. Key activities. Try this one.

Business Model 143

Business Model Intellectual Property Startup Angel Investor 143

YoungUpstarts

JANUARY 7, 2018

The digital revolution is disrupting the traditional business model for small and medium businesses (SMBs). Predictive analytics help determine the most effective markets for adspend, suggesting areas where the product is being well-received and those where the cost of customer acquisition is unreasonably high.

Artificial Inteligence 164

Artificial Inteligence Analytics SCRUM Cofounder 164

Up and Running

SEPTEMBER 14, 2021

A sales funnel focuses on the marketing campaign and purchasing process that leads to the acquisition of new and repeat clients. You can also do the following: Increase the level of client happiness and retention. Personalize your products and services to meet your clients’ demands and needs.

Sales 152

Sales Audience Social Media Email 152

Steve Blank

MAY 6, 2015

These hypotheses span the gamut from who’s the customer(s), to what’s the value proposition (product/service features), pricing, distribution channel, and demand creation (customer acquisition, activation, retention, etc.). activities necessary to implement the business model. Generating Hypotheses. Testing Hypotheses.

Lean 120

Lean Agile Business Model Customer Development 120

Startup Professionals Musings

MARCH 25, 2023

Most modern investors still look for a business model that embodies a gross margin over 50%, and a net margin in the 20% range. A healthy business, ready to scale, has been doing this for a year or more, with an existing customer set generating a non-trivial and growing revenue stream.

Valuation 235

Valuation Revenue Viral Retention 235

SoCal CTO

MARCH 11, 2010

This aligns with understanding the the core business model: Get Users (= Acquisition, Referral) Drive Usage (= Activation, Retention) Make Money (= Monetize) (and Lifetime Value is a good one) Of course, that’s a big part of what the investor wants as well. Part of those questions are around Startup Metrics.

Metrics 159

Metrics Startup Retention Software Developers 159

Startup Professionals Musings

JUNE 21, 2020

Most modern investors still look for a business model that embodies a gross margin over 50%, and a net margin in the 20% range. A healthy business, ready to scale, has been doing this for a year or more, with an existing customer set generating a non-trivial and growing revenue stream.

Revenue 434

Revenue Valuation Viral Retention 434

Startup Professionals Musings

JULY 13, 2019

An effective tool I see used more and more, as a prelude to a more detailed business plan, is the Business Model Canvas , first introduced by Alexander Osterwalder back in 2008. In my experience as a new business advisor, a business is nothing until people are aligned and work in sync. Key activities. Try this one.

Intellectual Property 250

Intellectual Property Business Model Angel Investor Channel 250

Up and Running

JULY 10, 2019

This is a great example of the brand running through every aspect of the business. . Why referrals and retention are the keys to long term growth. For any fitness business, be it big box or boutique, the best way to succeed in the long term is through referrals and retention.

Retention 70

Retention Social Media Software Review Acquisition 70

Startup Lessons Learned

SEPTEMBER 22, 2008

Lessons Learned by Eric Ries Monday, September 22, 2008 The three drivers of growth for your business model. The AARRR model (hence pirates, get it?) He also has a discussion of how your choice of business model determines which of these metric areas you want to focus on. Choose one.

San Francisco 167

San Francisco CPA SEM CTO Hire 167

The Startup Magazine

JANUARY 16, 2024

Beyond the immediate boost in sales and heightened brand visibility, the proper execution of limited-time offers and flash sales yields lasting benefits for businesses. This data-driven approach not only refines future marketing strategies but also contributes to a more agile and responsive business model.

Flash 115

Flash Sales Campaign Social Media 115

ReadWriteStart

MARCH 3, 2021

Growing a business is always challenging, but it’s often the hardest in the earliest stages of development. You’ll be operating with limited resources, limited knowledge, and quite possibly, a business model poised to change in the immediate future. The Prioritization of Customer Retention. Boost Customer Retention.

Early Stage 125

Early Stage PPC Retention Churn Rate 125

Growthink Blog

DECEMBER 27, 2017

In describing the competitive landscape, show how your business model creates competitive advantages, and – more importantly – defensible barriers to entry. Detail your customer retention plan. The most common exits are IPOs or acquisitions. market research). Demonstrate barriers to entry.

Venture Capital 129

Venture Capital Business Plan Technical Review Private Placement 129

ConversionXL

SEPTEMBER 20, 2018

According to ProfitWell , customer acquisition costs (CAC) have increased by over 55% in the last 5 years: At the same time, customer willingness to pay for features has dropped by 30% during that same period: So, on one hand, we have rising costs; on the other, we have a lower willingness to pay. customer acquisition process and channels).

Marketing 289

Marketing Sales Cycle Acquisition Sales 289

Steve Blank

MARCH 4, 2014

The Enterprise: Business Model Execution We know that a startup is a temporary organization designed to search for a repeatable and scalable business model. The corollary for an enterprise is: A company is a permanent organization designed to execute a repeatable and scalable business model.

IRR 335

IRR Startup Business Model Agile 335

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”). In addition to summary financial statements, include an output of key metrics like acquisition costs, lifetime value, cohort retention, etc.

Balance Sheet 60

Balance Sheet Software Review Forecast Acquisition 60

YoungUpstarts

DECEMBER 5, 2013

Add in sponsorships with payment brands (kind of like the co-branded credit card business model) to eliminate remaining costs and fund additional word of mouth advertising. Local businesses in Singapore report up to 5x increase in repeat business , up to 7x increase in fan acquisition rates and 10x increase in word of mouth.

Programming 150

Programming Turkey Social Media Redemption 150

NZ Entrepreneur

APRIL 29, 2019

However there is also the opportunity to change your business model, because of what IoT capabilities allow you to do differently. For example if you have an asset that gets taken to market in some way, what would happen if you didn’t actually transfer ownership from your business to a customer?

New Zealand 40

New Zealand Technical Review Retention Acquisition 40

SoCal CTO

OCTOBER 8, 2009

In many cases, I can break it down into: Customer Acquisition Cost – how will you reach prospects, how will you convert them and how much will it cost to convert them Customer Lifetime Value – how much will you make off of each converted customer This very simple model works for a surprising number of business models.

Metrics 225

Metrics Startup Retention Acquisition 225

ReadWriteStart

OCTOBER 2, 2023

A SaaS UX design that is intuitive, efficient, and enjoyable can significantly impact user satisfaction, retention, and overall success. Customer acquisition cost (CAC): CAC is the money a company spends to acquire a new customer. A well-designed user experience can increase user engagement and drive customer loyalty.

Design 105

Design Product Churn Rate Architecture 105

View from Seed

SEPTEMBER 11, 2019

For consumer companies this is usually around user acquisition, engagement, and retention. If in the long run your B2C business is likely to have an ad-based revenue model, the ability to acquire a large number of users at zero or extraordinarily low cost is critical.

Seed Stage 149

Seed Stage B2B Seed Capital Revenue 149

Startup Professionals Musings

AUGUST 10, 2014

Most modern investors still look for a business model that embodies a gross margin over 50 percent and a net margin in the 20 percent range. A healthy business, ready to scale, has been doing this for a year or more, with an existing customer set generating a non-trivial and growing revenue stream.

Revenue 246

Revenue Entrepreneur Valuation Viral 246

Startup Professionals Musings

JUNE 26, 2016

Most modern investors still look for a business model that embodies a gross margin over 50%, and a net margin in the 20% range. A healthy business, ready to scale, has been doing this for a year or more, with an existing customer set generating a non-trivial and growing revenue stream.

Revenue 145

Revenue Valuation Startup Viral 145

ConversionXL

SEPTEMBER 15, 2020

They applied a community-powered business model to the mobile sector, similar to that of Wikipedia, hence the name “giffgaff,” which means “mutual giving.”. This contractless model means giffgaff has to work “bloody hard” on retention, according to Sophie Wheater , giffgaff’s current CMO. Image source ).

Customer 85

Customer Community Revenue Software Review 85

VC Cafe

NOVEMBER 2, 2019

Benchmarks are typically specific to stage/business model/geo. In Rob Go’s words: For seed and Series A deals, investors will also need to see a high-potential team with founder/market fit , a large and attractive market opportunity , and a business model with increasing returns to scale.

B2C 141

B2C Technical Review Startup Retention 141

YoungUpstarts

JULY 5, 2018

Monthly subscription boxes for pet goods, beauty items and apparel have exploded in popularity among consumers lately, and subscription business models have attracted the wide interest of companies from Microsoft to Cadillac to Office Depot. Among the strategies tested by retailers are subscription billing programs.

Programming 113

Programming Bankruptcy Curation Retention 113

Hippoland

AUGUST 8, 2018

One thing I’ve noticed is that almost every repeat, previously-successful-founder focuses on the same thing for their respective startups: customer acquisition. In other words, if you can get 1000 people to come to your website consistently for under $5, then this business model works for you. or lack of).

Founder 48

Founder Sales Cycle Affiliate Retention 48

Hippoland

AUGUST 8, 2018

One thing I’ve noticed is that almost every repeat, previously-successful-founder focuses on the same thing for their respective startups: customer acquisition. In other words, if you can get 1000 people to come to your website consistently for under $5, then this business model works for you. or lack of).

Founder 48

Founder Sales Cycle Affiliate Retention 48

A Smart Bear: Startups and Marketing for Geeks

OCTOBER 17, 2011

For a company laser-focussed on accelerating the number of active users, it might be actually worth having high cancellation rates if it meant an even higher acquisition rate. ” For a simple subscription business model the formula is easy to write but hard to compute : [LTV] = [monthly revenue] × [number of months in lifetime].

Business Model 245

Business Model Metrics Engineer Technical Review 245

Steve Blank

APRIL 1, 2020

Remember, a year from now no one wants to be the CEO of a company out of business whose lament is, “I did what the board told me to do.”. This plan has three parts: Pivots to your new business model, changes to your operating plan, and what initiatives you save for the recovery. What does your board suggest?

South Korea 333

South Korea Salary Business Model China 333

ConversionXL

SEPTEMBER 28, 2017

3) Customer Acquisition Cost. Your budgetary number for how much you spend to acquire a customer is known as the “ customer acquisition cost ” (CAC). If you are entrepreneur planning your next business, you can’t afford to ignore the cost of customer acquisition. Calculating LTV depends on your business model.

Metrics 121

Metrics Acquisition Conversion Revenue 121

Women Entrepreneurs Can

DECEMBER 7, 2021

If you have the intention to grow by bringing investors on board, you will need a business plan to pitch your business as a worthwhile investment. Create a solid business plan to help map out your business models and keep your start-up on track with its goals. That will eventually lead to organic growth.

Founder 59

Founder Startup Metrics Reputation 59

Mucker Lab

APRIL 6, 2023

Are there types of companies, market segments, industries, or business models where PLG does not make sense? You engage the marketing team and you do a lot of acquisition and people are coming. You're really getting enough early users to help you validate to achieve a certain level of retention rate.

Product 78

Product CTO Hire Startup Fractional CTO 78

Startup Lessons Learned

AUGUST 21, 2013

None of these, she says, provides information about how well your company is delivering on your business model, nor about the true lifecycle of a customer. He counsels tracking only five kinds of behaviors: Acquisition (how do users find you?), Retention (do they return?), Revenue (how do you make money?),

Lean 167

Lean Louisville Startup Metrics 167

ConversionXL

JUNE 2, 2022

Sales and marketing collaborate until a deal is closed and beyond to secure long-term customer retention. How you approach it will depend on your business model and ideal accounts and how (or if) you plan to expand campaigns. For example, if one new acquisition is worth $10K, a pilot win could be 20 new acquisitions for $200K.

Customer 98

Customer Marketing Channel Acquisition 98

ConversionXL

JULY 21, 2022

How did Outreach grow in just a few years to 50,000 monthly active users , $10 million in new bookings, and net revenue retention (NRR) of more than 140%? This number can grow, but if all your new MAUs are free users, you’re not achieving your conversion and paid customer acquisition goals. Customer acquisition cost (CAC).

Metrics 120

Metrics Acquisition Revenue .Net 120