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7 Key Factors Obscure Your Customer Acquisition Costs

Startup Professionals Musings

As a business consultant and angel investor, I often ask for your own assessment of marketing ROI , or customer acquisition cost (CAC). Outside partners and channel impacts are complex. Of course, you need work with partners and channel to quantity their costs and contributions and normalize total results.

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Startup Metrics

TechEmpower

One way to approach that last question is to use this simple model: Customer Acquisition Cost (CAC) How will your business reach prospects? Look at different customer acquisition channels, how they are converting, and the expected lifetime value of customers acquired through those channels. Apply costs to each channel.

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Corporate Acquisitions of Startups: Why Do They Fail?

Steve Blank

More often than not the results of these acquisitions are disappointing. Companies manage these three types of innovation with an innovation portfolio – they build innovation internally, they buy it or they partner with resources outside their company. The goal is to get a corporate investment or an outright acquisition of the startup.

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Are You Selling Solutions Through The Right Channel?

Startup Professionals Musings

Even the best products and solutions won’t go anywhere unless you sell them through the right channels. They usually get chastised and declined for ignoring the realities of the retail channel. The right channel for marketing and distribution is one of the basic “four Ps” of business (product, promotion, price and placement).

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9 Success Principles To Propel Your Next New Venture

Startup Professionals Musings

Get support from credible industry groups and partners. Products that can be easily produced and sold via multiple channels, including the Internet, are more easily scaled world-wide. Develop a product line and add alternate channels. Prioritize mergers and acquisitions early. Prioritize mergers and acquisitions early.

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4 Keys To A Successful Integrity Check With Investors

Startup Professionals Musings

Visit reference customers, partners, and vendors. Sales and distribution channel activity will be analyzed, as well as cost of customer acquisition, to make an independent assessment of your financial projections. Use this opportunity to validate their satisfaction and support for your company and your solution.

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6 Ways To Win By Creative Partnering With Competitors

Startup Professionals Musings

Similar companies, even though competitors, usually face economies of scale and overlapping distribution channels. This approach has been used for years, and implies very little risk, but many startups are still “too busy” to pursuing possible partners. Capitalize on shared costs and common distribution.

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