Up and Running

JULY 26, 2016

Your customer acquisition cost and lifetime value are the two magical numbers you need to calculate for each one of your campaigns. Cost of Acquisition (CAC): The total cost of acquiring a user through a given channel. If the CAC is above the LTV, but not too much—there’s some potential in this channel.

Revenue 60

Revenue Acquisition Channel Campaign 60

ConversionXL

AUGUST 23, 2017

First, Outline Your Personas, Timeline, and Channels. Three other aspects to keep in mind are User Personas, Timeline, and Channels. What channel(s) have you chosen to analyze your customer experience on? They have identified their customer’s goals, touchpoints, assets, and channels, success factors, and secondary KPIs.

Customer 130

Customer Channel Design Retention 130

Startup Lessons Learned

SEPTEMBER 22, 2008

is an elegant way to model any service-oriented business: Acquisition Activation Retention Referral Revenue We used a very similar scheme at IMVU, although we werent lucky enough to have started with this framework, and so had to derive a lot of it ourselves via trial and error. The AARRR model (hence pirates, get it?)

San Francisco 167

San Francisco CPA SEM CTO Hire 167

This is going to be BIG.

JULY 26, 2010

The only concern was that they didn’t know what their cost of customer acquisition was, nor did they which channels would be most effective, or how much they could acquire out of each channel. The good thing is that customer acquisition is a pretty easily testable thing. Same thing with direct mail.

Acquisition 128

Acquisition Hockey Stick Customer SEM 128

Both Sides of the Table

JANUARY 19, 2015

Almost every online business I know (eCommerce, online software, mobile games) invests heavily in “customer acquisition” This includes investments often not properly measured (SEO, PR, Social) as well as costs that people measure more precisely (advertising, SEM, FB CPA/CPI ads). Take for example, an eCommerce company.

SEM 150

SEM Los Angeles Silicon Valley Acquisition 150

ConversionXL

FEBRUARY 3, 2022

You’ll also learn how to apply growth marketing to five key channels and how to plan and execute experimentation. It’s about identifying the channels and tactics that work best for your organization and then maximizing marketing efforts by confirming the best moves through experimentation. What is growth marketing? And what it isn’t).

Framework 102

Framework Marketing Acquisition Retention 102

Seeing Both Sides

FEBRUARY 25, 2016

The Growth Manager function typically lives at the intersection of marketing and product development, and is focused on customer and user acquisition, activation, retention, and upsell. For instance, should resources go to user acquisition or to combatting churn? Paid: Ads (Mobile, Web, Video, TV, Radio, SEM, Affiliate), Sponsorships.

Management 20

Management Analytics Technical Review Framework 20

Seeing Both Sides

FEBRUARY 25, 2016

The Growth Manager function typically lives at the intersection of marketing and product development, and is focused on customer and user acquisition, activation, retention, and upsell. For instance, should resources go to user acquisition or to combatting churn? Paid: Ads (Mobile, Web, Video, TV, Radio, SEM, Affiliate), Sponsorships.

Management 20

Management Analytics Technical Review Framework 20

Steve Blank

APRIL 15, 2011

This week they were testing one of the most confusing sections of a company’s business model – Customer Relationships - the activities used to “Get, Keep and Grow” customers in a physical or virtual (web or mobile) channel. But the big project for the week was testing and analyzing Customer Acquisition Costs.

Customer 247

Customer Cloud EC2 Channel 247

Steve Blank

DECEMBER 7, 2010

If you’ve read any of my previous posts, you know I believe that: 1) a product is just a part of a startup, but understanding customers, channel, pricing, etc. What are your hypotheses around customer acquisition costs? How does it differ on the web versus other channels? Direct channels, indirect channels, OEM.

Wiki 311

Wiki Lean Management Business Model 311

Austin Startup

MARCH 26, 2019

25 questions that DTC entrepreneurs should ask themselves before scaling customer acquisition So you run a direct-to-consumer (DTC) brand. You just spent a few thousand dollars on advertising and your paid customer acquisition cost (CAC) numbers tested well relative to your best guess for customer lifetime value (LTV).

Technical Review 49

Technical Review Software Review China Acquisition 49

Startup Lessons Learned

OCTOBER 7, 2008

The App Store is a channel for customer acquisition. As the channel gets more and more crowded, just launching an app in the store is getting worse and worse as a strategy for each new entrant. I think its helpful to think about two kinds of competition for distribution: acquisition competition and retention competition.

San Francisco 68

San Francisco Lean Retention SEM 68

Cracking the Code

NOVEMBER 25, 2015

You need to have identified acquisition channels (SEM, Facebook, offline…) at a reasonable cost with payback typically in less than nine months. Field test your product with a meaningful amount of customers — typically a few thousands or tens of thousands. This should give you a good idea of what to expect.

Europe 48

Europe Italy Spain SEM 48

Seeing Both Sides

FEBRUARY 9, 2015

Conventional wisdom suggests that the most important metrics for a startup - such as unit economics, cost of acquisition, lifetime value, churn rates - typically get better with time. Here are a few other key metrics that are hard to scale: Customer acquisition. Customer acquisition is like drilling for oil. in 2009 to $11.80

Metrics 20

Metrics Churn Rate Acquisition SEM 20

Both Sides of the Table

MARCH 11, 2011

Not because they didn’t want to do Pay-per-click (they are huge buyers of SEM) but because they didn’t want other people to know what they paid for clicks! IdeaLab has created 75 companies, leading to 8 IPOs, 35 or so acquisitions and more than 5 companies worth in excess of $1 billion. The Wedding Channel.

Product 350

Product Tuvalu Dilution Incubator 350

Duct Tape Marketing

NOVEMBER 10, 2015

There’s a lot going out there in the many channels small business owners and marketers find themselves, and it’s very helpful to use tools that help you keep track of marketing related metrics. In Google Analytics, you can find this report through Acquisition > Overview. I also rely heavily on a service called RivalIQ.

Metrics 28

Metrics Small Business Analytics SEM 28

Occam's Razor

JULY 1, 2008

The effort you invest in measuring offline impact will finally help your company understand how valuable the online channel is (or not!). Tips for measuring offline impact ("conversions) of your online channel: Some of these you might have heard of before, others might be new to you. Two words: Primary Key. Happy birthday! #2:

Analytics 116

Analytics Conversion Campaign Redemption 116

Cracking the Code

OCTOBER 10, 2008

The top performing SaaS companies typically achieve annual customer renewal rates above 90% - with most of the churn due to death (bankruptcies) or marriage (acquisitions) - and over 100% renewals on a dollar value basis due to up-sells into this installed base. Cashflow is the other key metric. Philippe Botteri. Bessemer SaaS Law #2.

Software Review 48

Software Review North America Europe Metrics 48