Both Sides of the Table

APRIL 26, 2016

Perhaps the most misused terms I see these days from entrepreneurs involve CAC (customer acquisition costs) and LTV (life time value) and a lack of understanding these critical components is driving many companies to premature failure. CAC is often measured incorrectly and doesn’t often doesn’t capture the true costs of acquisition.

Metrics 150

Metrics Cost Acquisition Startup 150

Hearpreneur

DECEMBER 14, 2022

It could be more revenue, hiring clients, or launching a new product or service, but every new year is an exciting time because it’s ripe with opportunity. 4- Better customer (and employee) retention. In 2023 I’ll be focusing on improving retention with our existing audience to maximize value on both ends of the relationship.

Entrepreneur 112

Entrepreneur Retention SEO Employee 112

Both Sides of the Table

DECEMBER 27, 2011

If you hire 6 sales reps in January at $120,000 / year salary then you’ve taken on an extra $60,000 per month in costs yet these sales people might not close new business for 4-6 months. So your Q1 results will be $180,000 less profitable than if you hadn’t hired them. Hiring more people isn’t always the right answer.

Startup 418

Startup Revenue Technical Review Flash 418

YoungUpstarts

FEBRUARY 13, 2019

by Robbie Kellman Baxter, author of “ The Membership Economy: Find Your Super Users, Master the Forever Transaction, and Build Recurring Revenue “ Everyone knows that retention is crucial for subscription-based companies. Blue Apron is hardly alone with its churn problem.

Customer 173

Customer Technical Review Retention Acquisition 173

Both Sides of the Table

JANUARY 11, 2014

So rather than hiring a VP Marketing [to establish a strategic marketing plan, build and manage the marketing team, manage outside vendors, etc.] I recommend hiring or appointing a growth hacker.” It’s why some companies are testing whether building applications on KIK might lead to better customers acquisition.

Technical Review 384

Technical Review Hockey Stick SEM Channel 384

Both Sides of the Table

APRIL 4, 2011

Customer Acquisition. Those two things together would lower your acquisition costs nearly in half to $6.11. Ironically, there are times where it may actually pay to INCREASE your customer acquisition costs. Retention / Churn. Measuring customer acquisition is clearly not enough because not all customers stick around.

Metrics 346

Metrics Startup Acquisition SEM 346

ConversionXL

JUNE 3, 2019

Has your company’s customer retention rate increased, decreased, or maintained the status quo over the past five years? Are you actively working on retention? Have you outlined and initiated a formal customer retention strategy? Make your retention strategy personal. Opinions don’t get people back. Email performance.

Retention 82

Retention Developer Customer Programming 82

A Smart Bear: Startups and Marketing for Geeks

FEBRUARY 26, 2019

Instead, watch payback period for acquisition efficiency, watch retention for product/market fit, watch expansion revenue for long-term growth, and watch gross margin for long-term profitability. A reliable paid acquisition channel results in a somewhat stable business. Sales” is not a dirty word. Fix that now.

Restful 202

Restful Founder Revenue Acquisition 202

Hearpreneur

JANUARY 30, 2022

Companies offer incentives such as signing and retention bonuses as well as unique job perks and flexible scheduling. Thanks to Adam Wood, Revenue Geeks ! #7- 15- Study supply chains and hiring trends. With rising costs due to inflation, more businesses are laser-focused on revenue than ever before. 7- Start outsourcing.

Entrepreneur 124

Entrepreneur Green Technical Review Social Media 124

Hearpreneur

JANUARY 19, 2022

Especially during challenging times, retention is significantly more crucial than acquisition. Although our in-person services were put on hold, our eCommerce products, including virtual services tripled in revenue. We had to make the difficult decision to cut down on staff and this allowed us to hire workers at lower rates.

Entrepreneur 120

Entrepreneur Metrics Technical Review North America 120

Both Sides of the Table

SEPTEMBER 19, 2011

The reason that incumbents can’t react is that their revenue and defensibility are continued by serving the high-end of the market for which it would take too much time & money for any competitors to effectively challenge. It’s the most profound book I’ve read on thinking about how the Internet is changing business.

Los Angeles 329

Los Angeles Revenue Retention Acquisition 329

ReadWriteStart

JULY 12, 2023

Companies can increase their revenue potential and access new customer bases by expanding into new markets. Companies in the IT management industry need customer acquisition and retention strategies that work to set them apart from the competition. Q: How important is customer acquisition for IT management firms?

United States 121

United States Management Mexico Artificial Inteligence 121

ReadWriteStart

MARCH 3, 2021

Many new businesses have a small customer base, limited revenue, and a finite amount of funding to work with. You can’t afford to hire a full team or place a Super Bowl ad, so you’ll need something more reasonably priced. The Prioritization of Customer Retention. Boost Customer Retention. Limited capital.

Early Stage 125

Early Stage PPC Retention Churn Rate 125

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

Version One Ventures

DECEMBER 6, 2018

In other words, you should demonstrate that revenue and/or engagement are repeatable and achievable in a cost-effective manner, and not just a function of pent-up demand from a small segment of underserved customers that will dry up in the near future. . Retention rate: What percentage of users can you retain quarter over quarter?

Acquisition 150

Acquisition Distribution Metrics Retention 150

ConversionXL

APRIL 4, 2017

Paid Acquisition. You’re undoubtedly familiar with paid acquisition, as it’s the digital equivalent of traditional advertising. Here are some resources to learn more about paid acquisition: Customer Acquisition Master Course (includes SEO). When Does Paid Acquisition Work for SaaS Startups?

Channel 118

Channel Marketing Viral SEO 118

ReadWriteStart

AUGUST 26, 2022

Good CEOs will look inside and say: “Hey, maybe we’ve been hiring a little bit too much during the sugar rush phase of the pandemic, and what does that mean for performance management? Can we squeeze out more from folks that we’ve hired, and are there things that maybe we have completely neglected? Have we become soft?

Partner 132

Partner Cofounder Retention Acquisition 132

Both Sides of the Table

NOVEMBER 9, 2012

The main points I’m going to cover today are to demystify a lot of misperceptions people have about startup exists, notably: Acqui-hires are not that frequent, are hard to come by and people make much less money than you think (investors & founders). Remote teams can be higher retention for staff. Often it does.

Technology 323

Technology PR Startup IPO 323

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

Both Sides of the Table

JUNE 17, 2017

If you hire 6 senior sales reps in January at $120,000 / year salary then you’ve taken on an extra $60,000 per month in costs yet these sales people might not close new business 6 months. 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.

Stock Options 227

Stock Options Startup Dilution Venture Capital 227

ConversionXL

NOVEMBER 12, 2018

Two humongous buttons and “HIRING.” The second drop-down with “What is your current revenue?” Don’t focus only on acquisition. When “more customers” is your primary (or only) goal, you inevitably forget about retention. It shows both the feature (part of the money-sending process) and the benefit (clear savings): 2.

Affiliate 116

Affiliate Email Technical Review Registration Rights 116

Hunter Walker

MARCH 7, 2019

Unsustainable revenue curves willed into existence in order to prove growth ahead of raising more capital is the organizational version of phosphorous. There’s an increased belief (maybe reality for some), that seed VCs want to see revenue before investing in verticals like SaaS, marketplaces, commerce.

Startup 97

Startup Revenue Vertical Retention 97

ConversionXL

SEPTEMBER 28, 2017

Macro conversions are the primary goal of your website, to convert user traffic into revenue. On the other side of the coin, micro conversions are actions a user completes that are either on the path to revenue-generating macro conversions or not directly related to revenue-generation at all. 1) Revenue per visitor.

Metrics 121

Metrics Acquisition Conversion Revenue 121

Tim Keane

MARCH 9, 2011

If, on the other hand, there is some near term prospect of cash flow (say within six months or a year) but no ability to repay in the meantime, then the entrepreneur may try and find a way to finance his “pre-revenue period” using friends and family money that accepts a somewhat lower payment in recognition of a relationship beyond just investing.

Finance 83

Finance Bootstrapping Startup Equity 83

Startup Lessons Learned

APRIL 14, 2009

Lessons Learned by Eric Ries Tuesday, April 14, 2009 Validated learning about customers Would you rather have $30,000 or $1 million in revenues for your startup? All things being equal, of course, you’d rather have more revenue rather than less. And yet revenue alone is not a sufficient goal. More on that in a moment.

Customer 167

Customer San Francisco Lean Hockey Stick 167

Mucker Lab

APRIL 6, 2023

You engage the marketing team and you do a lot of acquisition and people are coming. If you work in B2C or e-commerce, you optimize that Add to Cart flow like crazy because that is your revenue. 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

Steve Blank

APRIL 1, 2020

Your revenue plans are no longer valid. What’s your monthly cash burn at your new low revenue level? The CEO should dial through as many of the largest existing customers to get a firsthand understanding of the magnitude of any revenue shortfall. How can you shift focus to customer retention versus acquisition?

South Korea 333

South Korea Salary Business Model China 333

ConversionXL

JUNE 2, 2022

In this article, you’ll learn how to define your ABM strategy so you can target the right accounts and increase your revenue. Think of it as a filter that helps you find the highest chance of return on investment, revenue potential, and profitability. Cloud-based data warehouse Snowflake had an ambitious goal to triple its revenue.

Customer 98

Customer Marketing Channel Acquisition 98

YoungUpstarts

OCTOBER 14, 2016

Millennial small business owners work long hours, but their dedication is paying off – 83 percent experienced growth in revenue for their business over the past year, compared to 70 percent of respondents across all age demographics. If you plan to hire employees, you will need to purchase workers’ compensation and unemployment insurance.

Small Business 100

Small Business Entrepreneur Social Media LLC 100

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%? Apply these lessons to align your teams and drive revenue growth. NSM must: Lead to revenue; Reflect customer value; Measure progress. Defaulting to revenue.

Metrics 120

Metrics Acquisition Revenue .Net 120

Duct Tape Marketing

JULY 26, 2023

03:41] Number 2: Revenue and profit. [04:07] So the next one of course is revenue and profit marketing is driving a lot of that, right? So is your revenue growing compared to, you know, performance maybe in the industry or you know, what about profit margin? We'll go beyond sales to retention referral. Is there a focus?

Marketing 57

Marketing Artificial Inteligence Retention Audio 57

ConversionXL

JANUARY 8, 2018

Search Engine Optimization (SEO) is one of the biggest levers that a business can use within their acquisition strategy as part of their Growth goals. You’re likely familiar with the different Growth frameworks like AARRR (Acquisition, Activation, Retention, Referral, Revenue). It all start with Acquisition.

SEO 134

SEO Metrics Analytics Search 134

Duct Tape Marketing

OCTOBER 17, 2018

He is the president and founder of Revenue & Associates and the creator of The bullseye marketing framework and we’re going to talk about a book built on that called Bullseye Marketing: How to Grow Your Business Faster. In fact, keep listening, I’m gonna tell you how to get 50 percent off. I’d love to see it, If it does.

Marketing 56

Marketing Social Media Analytics Software 56

Duct Tape Marketing

JULY 26, 2023

03:41] Number 2: Revenue and profit. [04:07] So the next one of course is revenue and profit marketing is driving a lot of that, right? So is your revenue growing compared to, you know, performance maybe in the industry or you know, what about profit margin? We'll go beyond sales to retention referral. Is there a focus?

Marketing 44

Marketing Artificial Inteligence Retention Audio 44

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

Duct Tape Marketing

JANUARY 3, 2023

07:40): Now, obviously, that may not make the phone ring, that may not actually take you from a revenue standpoint where you want to go. Then I want to talk to you about adding a new revenue stream to your business that will completely change how you work with clients. (11:08): So what's the next level of maturity? Do I need a coo?

Customer 87

Customer Marketing Engineer Advertising 87

The Startup Toolkit

NOVEMBER 15, 2012

Some businesses have basically zero risk around their revenue model. Growth is acquisition plus retention. Acquisition and retention tend to be inseparable from the product. You make the left half more efficient to control your costs while improving the right half to boost your revenues.

Startup 55

Startup Business Model Retention Acquisition 55