Startup Professionals Musings

AUGUST 10, 2014

Some analysts argue that revenue drives growth, while others say user growth drives revenue. Both have worked.Google reached $1 billion in revenue within five years of incorporation, and now has a market capitalization of over $400 billion. Long-term stability requires revenue growth and profit.

Revenue 246

Revenue Entrepreneur Valuation Viral 246

Both Sides of the Table

JANUARY 11, 2014

We spend a lot of time trying to get people focused on building products that have viral components and why that has to be measured and constantly tested. I have seen many teams pour tons of money, time and effort into PR strategies without thinking about how product tweaks could drive more consumption, more retention and more referrals.

Technical Review 384

Technical Review Hockey Stick SEM Channel 384

ConversionXL

OCTOBER 4, 2022

Since 2015, clothing brand ASOS has grown revenue by an average of 22% year over year. It’s critical to nurture the brand-buyer relationship to increase customer retention. Brands that focus on retention and nurturing customer relationships win in the long term. From here, attach valid marketing metrics to each goal.

eCommerce 129

eCommerce Marketing Social Media Retention 129

Startup Professionals Musings

DECEMBER 8, 2021

It highlights the story of how United Airlines paid no attention to social media while Dave’s story of his crushed guitar and poor customer service went viral around the world. Maximize customer retention. Last year, Facebook’s revenue from advertising was over $55 billion, which was a 50% year-over-year increase.

Social Media 355

Social Media Media Reputation Viral 355

ConversionXL

FEBRUARY 12, 2019

The second relies on retention. Overall acquisition costs for both B2C and B2B have gone up by 50% in the past five years. To offset these costs, you need to earn more repeat purchases from existing customers. That means better margins, more profitability, and cost-efficient scaling. The second type is winning.

Retention 126

Retention Analytics Campaign eCommerce 126

ConversionXL

SEPTEMBER 13, 2018

You’ll be able to see which acquisition channels are best for long-term retention or lifetime value, not simply those that drive initial conversions. There are other use cases, too, such as app developers seeking to maximize the value of users for a viral game with a lifespan of days or weeks. Engagement, conversion, and retention.

Analytics 119

Analytics Technical Review Acquisition Retention 119

Startup Professionals Musings

JUNE 26, 2016

Some analysts argue that revenue drives growth, while others say user growth drives revenue. Google reached $1B in revenue within five years of incorporation, and now has a market capitalization of over $400B. Long-term stability requires revenue growth and profit. Both have worked. Traditionally, it was simple.

Revenue 145

Revenue Valuation Startup Viral 145

Both Sides of the Table

APRIL 4, 2011

Measuring viral adoption is obviously important. The next step after measuring the customers you’re adding is to add the “cost to acquire” by channel. In the early phases if you can’t acquire customers cost effectively enough you’ll need to diagnose why and how to fix it. Now you can two levels to get your cost-to-acquire down.

Metrics 346

Metrics Startup Acquisition SEM 346

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. You’re not allocating enough costs to gross margin or the cost to acquire a customer. Priority depends on your goals (e.g.

Restful 202

Restful Founder Revenue Acquisition 202

Steve Blank

FEBRUARY 26, 2020

There are two reasons to raise money: You have a killer idea that is only partially validated, that you think can get to $50M+ of revenue in 5 years with 80%+ gross margins (if margins are lower, you need a lot more revenue)and you need money to get to product-market fit, or. Revenue per customer? Revenue, Gross Margin?

Cofounder 431

Cofounder Seed Stage Valuation Metrics 431

A Smart Bear: Startups and Marketing for Geeks

JULY 23, 2013

Marketo filed for IPO with impressive 80% year-over-year growth in 2012, with almost $60m in revenue. of revenue, force-feeding sales pipelines with an unprofitable product. I know the argument: The pay-back period on sales, marketing, and up-start costs is long, but there’s a profitable result at the end of the tunnel.

Business Model 335

Business Model .Net Revenue IPO 335

ConversionXL

APRIL 4, 2017

There are many who aren’t doing it well , but to me it seems this is a natural extension of any other acquisition channel, and a super important lever for retention and relationship building. Virality and Referral. Virality is the key lever of many of the most famous growth examples: Dropbox, Uber, Facebook, Hotmail.

Channel 118

Channel Marketing Viral SEO 118

Startup Professionals Musings

MARCH 2, 2019

It highlights the story of how United Airlines paid no attention to social media while Dave’s story of his crushed guitar and poor customer service went viral around the world. Maximize customer retention. Last year, Facebook’s revenue from advertising was over $55 billion, which was a 50% year-over-year increase.

Social Media 246

Social Media Media Reputation Viral 246

ConversionXL

JUNE 24, 2014

The number of visitors directly correlates to revenue – whatever business you are in. Going social improves the quantity and quality of data your marketing team receives, enabling you to make more informed decisions about everything your business does – including marketing & customer retention strategies.

Social Network 130

Social Network Viral Social Media B2C 130

ConversionXL

SEPTEMBER 2, 2019

The number of visitors directly correlates to revenue—whatever business you are in. Going social improves the quantity and quality of data your marketing team receives, enabling you to make more informed decisions about everything your business does—including marketing and customer retention strategies.

Social Network 73

Social Network Viral Social Media B2C 73

Startup Lessons Learned

DECEMBER 14, 2009

In a previous post , I covered the three main drivers of growth: Paid, Sticky, and Viral. A business that strives for something like this should absolutely be charging money from day one, in order to establish baselines for their two key metrics: CPA (the cost to acquire a new customer) and LTV (the lifetime value of each acquired customer).

Customer 156

Customer San Francisco Viral Lean 156

Startup Professionals Musings

AUGUST 24, 2013

It highlights the story of how United Airlines in 2008 paid no attention to social media as Dave’s story of his crushed guitar and poor customer service went viral around the world. Maximize customer retention. United Airlines is still recovering from that debacle. Build your brand and expert visibility. You need to be there.

Social Media 271

Social Media Media Startup Reputation 271

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

Occam's Razor

MAY 2, 2017

Outcomes: Revenue | Ideas Funded Behavior: Path Length | Cart Abandonment Rate Acquisition: Assisted Conversions | Share of Search. Every ecommerce site has to obsess about Revenue. Always adapt to what’s most important and sensible for you (and remember that nothing is free, every measurement decision you make has a cost!).

Metrics 141

Metrics Acquisition eCommerce Analytics 141

ConversionXL

FEBRUARY 9, 2016

” April, 2012 – Andrew Chen writes Growth Hacker is the new VP Marketing , which goes viral (2.4K This means users love it, that there’s lots of retention and engagement, even at small numbers. Now, people begin defining growth hacking as a process, a systematic approach, a “viral loop”, etc.

Retention 48

Retention Metrics Acquisition Conversion 48

ConversionXL

APRIL 6, 2016

Example: “Do you know what a good night’s sleep costs you? Underlines improve clickthrough on Bing for both algorithmic results and ads (so more revenue) and improve time to successful click (better UX). Revenue is usually a good metric to use to evaluate effectiveness of test. Why retention matters?

Retention 48

Retention Algorithm Software Review Conversion 48

SoCal CTO

OCTOBER 5, 2010

10 Tips for Adding Game Mechanics to a Non-Gaming Service - ReadWriteStart , September 21, 2010 Game mechanics have become a popular way of increasing user engagement and pushing user adoption, referral and retention, and many startups have sought ways to incorporate game mechanics into their sites. Why You Should Write. Status / reputation.

Technology 191

Technology Product San Francisco CTO Hire 191

Startup Professionals Musings

FEBRUARY 26, 2017

It highlights the story of how United Airlines paid no attention to social media while Dave’s story of his crushed guitar and poor customer service went viral around the world. Maximize customer retention. Last year, Facebook’s revenue from advertising was over $26 billion, which was a 50% year-over-year increase.

Social Media 120

Social Media Media Entrepreneur Reputation 120

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

Hippoland

AUGUST 8, 2018

Very simply, your cost to acquire a customer needs to be lower than the value of that customer (lifetime value). Diving in a bit more into some thoughts here: 1b) Ad-based revenue streams generally have terrible unit economics. Ads can also be cost-per-click or cost-per-action ads. This is obvious. Marketing first.

Founder 48

Founder Sales Cycle Affiliate Retention 48

Hippoland

AUGUST 8, 2018

Very simply, your cost to acquire a customer needs to be lower than the value of that customer (lifetime value). Diving in a bit more into some thoughts here: 1b) Ad-based revenue streams generally have terrible unit economics. Ads can also be cost-per-click or cost-per-action ads. This is obvious. Marketing first.

Founder 48

Founder Sales Cycle Affiliate Retention 48

Startup Professionals Musings

JULY 18, 2012

It highlights the story of how United Airlines in 2008 paid no attention to social media as Dave’s story of his crushed guitar and poor customer service went viral around the world. Maximize customer retention. Last year, Emarketer estimated that Facebook’s revenue from advertising was $3.8 You need to be there. billion in 2012.

Social Media 198

Social Media Media Marketing Reputation 198

Cracking the Code

DECEMBER 1, 2009

Popular Media: the key to viral marketing. McKinsey highlight #1: the art of cost cutting or. The recession created opportunities! Software 2.0: How the use of internet is transform. ► 03/25 - 04/01. (1). Global warming: a plague for humanity? ► 03/18 - 03/25. (1). ► 02/11 - 02/18. (2). ► 01/07 - 01/14. (1).

Software Review 48

Software Review Technical Review Cloud Europe 48

abovethecrowd.com

JUNE 2, 2021

Paypal famously offered customers $5 to invite a friend, who would then also get $5 as part of a highly successful viral marketing campaign (they actually started at $20, and then reduced it to $10 and then ended at $5). Would that help retention and NPS (Net Promote Score)? With the 7% banker fee that is a 35% AVERAGE cost of capital.

IPO 82

IPO Customer Matching Silicon Valley 82

The Next Web

MARCH 2, 2014

Successful mobile games rely on virality and retention just as much as monetization to stay afloat. In the first 30 days of our anti-cyberbullying campaign, players were so excited about donating that 19 percent of our game’s net revenues ended up going to Cybersmile.

Mobile 142

Mobile Global Campaign Viral 142

andrewchenblog.com

JANUARY 28, 2010

To become profitable using a freemium business model, this simple equation must hold true: Lifetime value > Cost per acquisition + Cost of service (paying & free) Said in plain english, the lifetime value of your paying customers needs to be greater than the cost it took to acquire them, plus, the cost servicing all users (free or paying).

CPA 51

CPA Retention Viral Acquisition 51

ConversionXL

MARCH 15, 2016

It means that user retention becomes even more important. If users are not onboarded properly, the chances of retention are minimal. In fact, mobile app revenue for 2016 is estimated at $58 billion. It’s close to the revenue, it’s measurable, it’s directly linked to onboarding. So, what does that mean?

Mobile 48

Mobile Retention Email Software Review 48

Hippoland

OCTOBER 16, 2016

High infrastructure companies Traditionally, software investors have loved being in the software industry because the capital costs are low and also because you can get something into the market quickly. Do you have virality built into the product? You don’t see a lot of “self-taught” folks in this category.

Startup 48

Startup Vertical Early Stage Bootstrapping 48

Reid Hoffman

MARCH 19, 2019

And, as the industrial revolution showed us, there are some real costs to scale. Google realized that being the way to find the world’s information was a blitzscalable market, thanks to the network effects in its AdWords revenue engine. If O’Reilly had that same insight in 1995, it could have been an amazing blitzscaling opportunity.

Cofounder 28

Cofounder Business Model IPO Non-Compete 28

The Startup Toolkit

FEBRUARY 27, 2012

Folks who know nothing about your business will evaluate it based on the default metrics: traffic & revenue. It’s harder for people (including your own team) to intuit the implications of your retention rate. The lean startup book’s engines of growth is a great starting point for picking good metrics: Growing virally?

Metrics 46

Metrics Retention Viral .Net 46

klinger.io

JANUARY 17, 2014

As a analytics consultant I am working with a lot of startups and help them in the topics of metrics, analytics, retention and growth. Conversion Rates, Landing Page Optimizations, Funnel Optimizations, Viral Loops, Quick questions and insights are they typical examples of usecases of exploration. 6th January 2014.

Analytics 67

Analytics Metrics Startup Database 67

Ben's Blog

MAY 15, 2020

Andrew : Why Loom and Zoom and Clubhouse and some of the other new social experiences benefit is that you can use the current boom in engagement and viral growth to build out your network. ” At least at Reforge, a lot of our revenue comes from company education budgets. Are we right or wrong about these things?”

Founder 36

Founder Conversion Technical Review Cash Position 36