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. There isn’t one most important SaaS metric. A reliable paid acquisition channel results in a somewhat stable business.
A Smart Bear: Startups and Marketing for Geeks
JULY 23, 2013
time to earn back the revenue to cover all your customer acquisition expenses) 75% annual retention. But for the few who do, they can maintain growth rates of X%/yr where X is much larger than cancellation, and do so with very little acquisition costs. Drastically reduce the cost of customer acquisition. year pay-back period.
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A Smart Bear: Startups and Marketing for Geeks
FEBRUARY 11, 2014
But it’s surprising to me how many companies with recurring/subscription revenue don’t understand the interactions between the elements that make up customer acquisition cost (CAC), churn and lifetime value (LTV). Averages – The metrics described here are all averages calculated using data over a period of time.
A Smart Bear: Startups and Marketing for Geeks
MAY 1, 2012
For example, the average cost of customer acquisition diminishes. Because you get organized around marketing metrics, because your campaigns get optimized, because your landing pages and drip campaigns become stronger, because word of mouth produces sales “for free,” and so forth. Less time training customers.
A Smart Bear: Startups and Marketing for Geeks
MARCH 21, 2017
Revenue multiples, profit multiples, premium over the previous financing — these are metrics used by sellers to help determine a minimum acceptable price. In terms of acquisition, they ask more specifically: “How can we trade balance sheet assets (cash, equity) in exchange for executing our strategy better?”.
A Smart Bear: Startups and Marketing for Geeks
OCTOBER 17, 2011
As a preamble to the metrics, it’s useful to know what you’re measuring and why it’s vital. We had a spike in this metric in February at WP Engine when our Internet provider themselves had a datacenter-wide catastrophe which brought us down for twelve hours; of course not all spikes will have such obvious causes.
A Smart Bear: Startups and Marketing for Geeks
APRIL 9, 2013
It turns out that the cost of customer acquisition for consumers was too high compared to the revenue being generated. “In Most consumer apps get around the high acquisition costs with some sort of virality, but backup isn’t viral. This is a very metrics-focused approach, but you can ask yourself some higher level questions as well.
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