Up and Running

OCTOBER 7, 2019

Think of them like this: If you have a critical sales milestone your company needs to meet by the end of the year, KPIs should deliver incremental evidence that you’re either headed in the right direction, or you’re not. . Sales KPIs. Customer acquisition cost (CAC): find out how much it takes to acquire a customer (e.g.,

Founder 71

Founder Retention Metrics Technical Review 71

Both Sides of the Table

DECEMBER 27, 2011

The most obvious way to explain this is with sales people. 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. “COGS” represents the amount that each sale costs you.

Startup 418

Startup Revenue Technical Review Flash 418

The Startup Magazine

MAY 9, 2024

Both eventually went public, albeit WeWork via a special purchase acquisition company (SPAC). This strategic pivot is designed to address the issue of startups unsustainably broadening their customer base and product lines, which results in inefficiencies and escalates customer acquisition costs.

Burn Rate 88

Burn Rate Bankruptcy Startup Metrics 88

Steve Blank

FEBRUARY 26, 2020

For a Series A round you want to prove you have built a repeatable and scalable sales/revenue model and understand all parts of the business model. Series B is about proving your net revenue model (can you be profitable?). You need to begin to “instrument” your customer acquisition process with analytics. 2M in 18 months.

Cofounder 431

Cofounder Seed Stage Valuation Metrics 431

ConversionXL

APRIL 7, 2021

Here’s the irony though— even though potential customers may be in the market for a solution like yours, you still need to deploy the traditional sales/marketing strategies to convince them to make a purchase. When sales made a list of logos they wanted to sell, or the list of ‘dream customers’ to close.

IP 98

IP Marketing Technical Review Software Review 98

ConversionXL

APRIL 3, 2018

Facts don’t change minds – true for both sales and customers. Tara Robertson – How to 10x Growth by Optimizing Customer Marketing & Retention. Retention is the most important thing – if that’s poor, nothing else matters. Start with retention. Optimize for retention, not just acquisition.

Retention 106

Retention Artificial Inteligence Channel Email 106

A Smart Bear: Startups and Marketing for Geeks

JULY 23, 2013

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. Marketing, sales, legal, account management, on-boarding, technical guidance, training.

Business Model 335

Business Model .Net Revenue IPO 335

David Teten

DECEMBER 16, 2015

Net Income (Loss). For early stage companies, the metrics that matter might typically center around activation, engagement and retention. Customer Acquisition Cost (CAC). Sales Pipeline. Conversion to Sales %. Net MRR Churn %. Gross Profit. Payroll Expenses. Available Cash. Remaining Runway. Users/Customers.

Metrics 60

Metrics Analytics Balance Sheet .Net 60

Version One Ventures

DECEMBER 6, 2018

Before raising your B round, you’ll need to be able to show how you can scale sales and marketing and that you are starting to really understand your business. Retention rate: What percentage of users can you retain quarter over quarter? It’s even better to be net negative (expansion dollars > churn dollars).

Acquisition 150

Acquisition Distribution Metrics Retention 150

David Teten

AUGUST 6, 2015

It’s misleadingly precise to have two digits to the right of the decimal in a CAC/LTV multiple for year 3 of your forecast (“Customer Acquisition Cost”/”LifeTime Value of Customer”). A model that shows X% growth over time with no embedded correlation to sales/marketing is a huge red flag. 15) Bridge historical and projected data.

Balance Sheet 60

Balance Sheet Software Review Forecast Acquisition 60

ConversionXL

OCTOBER 30, 2019

Now try to think of the last time you experimented with something other than your acquisition strategy. Article after article, course after course, conference talk after conference talk addresses acquisition experimentation—getting more conversions at the top of the funnel. Every tip is acquisition-centric. Acquisition.

Retention 101

Retention Metrics Churn Rate Acquisition 101

ConversionXL

MAY 8, 2019

He argues that, if factors like price and product quality are perceived as equal, the seller who’s created a relationship with a buyer will win the sale. calls to action and sales-focused product pages alone. But you can’t skip this stage simply because it’s furthest from a sale. You can build that relationship with content.

eCommerce 131

eCommerce Marketing Audience Non-Compete 131

ConversionXL

AUGUST 12, 2016

That’s the sound of potential customers leaking out of your sales funnel. After fighting tooth-and-nail to launch your SaaS business, the last thing you want is a leaky sales funnel to undermine all your hard work. However it comes with it’s own set of challenges, like retention and churn. Customer Acquisition Cost (CAC).

Software Review 48

Software Review Metrics Revenue Acquisition 48

View from Seed

AUGUST 30, 2016

Acquisitions are happening more and more, while companies like PillPack, Actifio, CarGurus, OnShape, Acquia, Applause, and others continue to march forward. SMBs account for 54% of all US sales. SMBs represent 55% of jobs and 66% of all net new jobs since the 1970s. The number of SMBs in the US has increased 49% since 1982.

Social Media 185

Social Media B2B North America Media 185

ConversionXL

SEPTEMBER 20, 2021

Given that most users abandon apps within 30 days post-installation, high downloads don’t lead to high audience retention, satisfaction, or revenue. Of course, a video with low ROI can still generate awareness, expand impact, and lead to sales. For ASO, this happens when you prioritize downloads over long-term value.

Analytics 134

Analytics Metrics Channel Video 134

Steve Blank

MARCH 4, 2014

Sales teams are commission-based, executive compensation is based on EPS, revenue and margin, business units on revenue and margin contribution, etc. Finance The goals for public companies are driven primarily by financial Key Performance Indicators (KPI’s). What Does this Mean?

IRR 335

IRR Startup Business Model Agile 335

ConversionXL

OCTOBER 30, 2019

Now try to think of the last time you experimented with something other than your acquisition strategy. Article after article, course after course, conference talk after conference talk addresses acquisition experimentation—getting more conversions at the top of the funnel. Every tip is acquisition-centric. Acquisition.

Retention 48

Retention Metrics Churn Rate Acquisition 48

ConversionXL

NOVEMBER 22, 2022

Click-Through Rate Definition The Conversion Rate Formula: How to Calculate Conversion Rate Bounce Rate: Everything You Want to Know and More How To Calculate and Increase Customer Lifetime Value PPC Click-Through-Rate: What it Means and How to Use It (and Improve It) How to Track and Improve Ecommerce Customer Acquisition Effectiveness.

Metrics 105

Metrics Analytics Marketing Acquisition 105

ConversionXL

MARCH 5, 2014

The origins of this myth can be traced back to the 1980′s when the Technical Assistance Research Project published research that stated the cost of customer acquisition vs the cost of customer retention was significantly higher. In David Skok’s post, he says: “Life Time Value > Cost of Acquisition. (It

Customer 133

Customer Churn Rate Retention Acquisition 133

Agile VC

NOVEMBER 9, 2015

It has grown remarkably, has favorable gross margins and customer acquisition payback, and a clear path to profitability. The other tiny portion (1%) comes from sales of hardware, like the tablet stands and POS like cash drawers that some businesses use to process Square payments. What are customer acquisition costs like?

IPO 165

IPO .Net Revenue Acquisition 165

ReadWriteStart

AUGUST 26, 2022

The startup didn’t work out, but I found ways to be around it, whether it was on the sales side in Goldman for a few years. So they have about 60 million customers now, and they have a view of the net present value of each customer when they’re onboarding them and their models to show it. Jonathan Siddharth. Sounds great.

Partner 132

Partner Cofounder Retention Acquisition 132

Up and Running

NOVEMBER 12, 2014

The SEC’s proposed rules (mandated by the JOBS Act of 2012) amend the Securities Act of 1933 and the Securities Exchange Act of 1934 to allow the offer and sale of securities through an internet crowdfunding campaign, similar in some respects to donation crowdfunding campaigns conducted on Kickstarter and Indiegogo.

Equity 125

Equity SEC Technical Review Security 125

Both Sides of the Table

JUNE 17, 2017

The most obvious way to explain this is with sales people. 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. COGS” represents the amount that each sale costs you.

Stock Options 227

Stock Options Startup Dilution Venture Capital 227

Tim Keane

MARCH 9, 2011

How to prepare a sales forecast for a business plan » March 09, 2011. Example one: Sustainable net operating income with some growth in a stable market.    If plenty of cash flow regardless of plan for sale/retention of business: Senior bank debt based on cash flow coverage and new assets. 

Finance 83

Finance Bootstrapping Startup Equity 83

Version One Ventures

JULY 13, 2015

Gross merchandize volume (GMV) is the total sales dollar value for goods sold or services purchased through the marketplace over a certain time. Given that GMV is one of the most important marketplace KPIs, founders should track its growth rate on a monthly and yearly basis, and understand its makeup by customer acquisition channel.

Due Diligence 60

Due Diligence Retention Metrics Revenue 60

ConversionXL

JUNE 2, 2022

Some see it as a sales tactic, while others view it as a content marketing strategy. Account-based marketing is an approach where marketing and sales work together to nurture target accounts and convert or retain customers. It needs perfect alignment from sales, marketing, and executive leaders across the organization.

Customer 98

Customer Marketing Channel Acquisition 98

ConversionXL

SEPTEMBER 28, 2017

For websites, this can include “sales volume,” “number of visits,” “average cart value,” and a variety of other metrics. Visitors are important — no visitors, no sales — but they aren’t as important as sales. 3) Customer Acquisition Cost. KPIs are metrics, but not all metrics are KPIs; the terms aren’t mutually exclusive.

Metrics 121

Metrics Acquisition Conversion Revenue 121

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%? The sales platform is intensely devoted to nurturing its monthly active users (MAU). By focusing intently on a single measurement, known as a north star metric.

Metrics 120

Metrics Acquisition Revenue .Net 120

ConversionXL

JULY 11, 2016

The most important measure at TransferWise is the net promoter score. Build acquisition into your product (LinkedIn, TransferWise). The aim nowadays should be to create great content that directly converts into sales. Personalized sales message. Use marketing to amplify your product. Usually converts well: Teaching video.

PPC 48

PPC Analytics Video Non-Compete 48

ConversionXL

SEPTEMBER 30, 2020

A call from a member of your sales or customer service team can keep you top of mind. In our experience, 99% of B2B SaaS products should limit the trial to 14 days, max […] “If you have salespeople, it’ll shorten your sales cycle. If you have the capacity—for some clients, at least—you can go beyond email. Image source ).

Customer 121

Customer Sales Cycle Email Missouri 121

ConversionXL

MAY 3, 2017

Basically, folks who are already in the sales funnel. Facebook Custom Audience campaigns will help you cover the gap, and get some real mileage out of your acquisitions. Their campaign netted them seven times the ROI and 11 times as many new subscribers as their newsletter did. The newest entrants to your sales funnel.

San Jose 133

San Jose Customer Database Campaign 133

ConversionXL

NOVEMBER 15, 2016

Some are complex and require sales development and account executives to close, like Oracle’s marketing cloud. Could be wasting sales and customer success time if not). Some of the conversions you can optimize for with SaaS could be… visit → trial (quick to test, but doesn’t always correlate to sales).

Conversion 48

Conversion Churn Rate Retention Metrics 48

Hearpreneur

DECEMBER 3, 2021

This has challenged me to take new risks and investments that have helped put my business on the market and increase its sales. The corporate has created e-commerce stores that enable sales teams to target a broader customer base, hence generating new sources of revenue. And top stars can give you that visibility.

Entrepreneur 121

Entrepreneur Africa South America Europe 121

Venture Chronicles

APRIL 20, 2014

When you combine inbound marketing with account-based scoring, you get a very potent combination of predictable opportunity funnel that also benefits from lower customer acquisition costs. We know from this data that there are tipping points that occur in the opportunity (account) scoring that should and do cause additional sales activity.

B2B 45

B2B Marketing SEM Bandwidth 45

maplebutter.com

JANUARY 8, 2013

Product/Metrics (70%/30% time) * Get your product activation (sign-up + meaningful action) to 60% * then, Get your product retention to 20% weekly. Do that – nothing else but one product / company / focus and get to $1M in sales with atleast $15% net profit. I also like to get a sale $$$ ASAP. do something else.

Technical Review 44

Technical Review Startup Cofounder Software Review 44

ConversionXL

FEBRUARY 3, 2022

We’ll also share how to achieve marketing goals at this stage, using your existing customers and experimentation to increase sales and loyalty. The growth stage is the period of the product life cycle with the sharpest increase in sales thanks to a boost in-market presence.

Product 102

Product Marketing Social Media Channel 102

ConversionXL

NOVEMBER 13, 2019

Client retention hinges on relationships—and the people who maintain them. Maybe that’s gotten me into trouble in some cases, where I’ve had to reinvent things that had already been figured out, but I think it netted out to be a benefit for our innovation.” The familiar name of an agency CEO is a proxy for trust.

SEO 110

SEO Hiring PPC Leadership 110