ConversionXL

SEPTEMBER 1, 2020

Inside an organization there are only cost centers. Meaning: C = Customers (traffic x conversion rate) CLV = Customer revenue – (CAC + cost of serving that customer) CAC = Customer Acquisition Cost G = Growth. Customer retention rate; New customer stickiness. Customer retention rate; New customer stickiness.

Customer 132

Customer SMS Retention Acquisition 132

YoungUpstarts

OCTOBER 31, 2017

by Robbie Kellman Baxter, author of “ The Membership Economy: Find Your Super Users, Master the Forever Transaction, and Build Recurring Revenue “ In today’s competitive market, customer engagement (or lack thereof) could determine whether your company sinks or swims. Customer Success goes beyond Customer Service.

Customer 171

Customer Retention Software Review Metrics 171

Startup Professionals Musings

MARCH 25, 2023

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 $1 trillion. Long-term stability requires revenue growth and profit. Both have worked. Traditionally, it was simple.

Valuation 235

Valuation Revenue Viral Retention 235

Up and Running

OCTOBER 7, 2019

A data-driven approach can help you make accurate and timely business decisions to meet market demands and improve cost-efficiency. Revenue growth rate: measures the month-over-month percentage increase in revenue and is the most common and important metric for startups. “What gets measured gets done.” . Marketing KPIs.

Founder 71

Founder Retention Metrics Technical Review 71

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

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. And you might be a little generous about getting them to re-up if your variable costs are low.

Customer 173

Customer Technical Review Retention Acquisition 173

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

The Startup Magazine

MAY 4, 2023

Disabled access credit (DAC) helps business owners scale down on costs associated with providing access to disabled employees. It offers a credit of up to $10,000, which you can claim if your business revenue crosses $1 million. If so, you can claim a tax credit and offset those costs. Here are a few ways to consider.

Small Business 123

Small Business .Net Retention Employee 123

A Smart Bear: Startups and Marketing for Geeks

OCTOBER 4, 2016

The single most important SaaS metric is retention , because cancellations indicate lack of product/market fit, no matter the cause (price, features, severity of need, duration of need). So, retention is most-important, regardless of stage. The unicorns are dying not for of lack of revenue, but for lack of profit.

Metrics 270

Metrics Retention Revenue Equity 270

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

Berkonomics

DECEMBER 22, 2016

R&D efforts may remain separate for a period or forever, but R&D management is consolidated as soon as possible to avoid territorial disputes and retention of inefficient development processes. Facilities may become redundant or oversized after these efforts, allowing for consolidation of facilities as well.

Acquisition 48

Acquisition Retention .Net Sales 48

YoungUpstarts

OCTOBER 10, 2012

If you can harness the knowledge, natural enthusiasm, and peer influence of your very best customers — I call them “Rock Star” customers — they’ll market, sell, and help develop breakthrough products for your firm better than your internal resources can do, and often at a fraction of the cost. But it does require some new thinking.

Customer 154

Customer Fractional CTO Canada Technical Review 154

David Teten

DECEMBER 16, 2015

The most common financial metrics ffVC asks companies to compare vs. budget are: Gross Revenue. Net Income (Loss). For early stage companies, the metrics that matter might typically center around activation, engagement and retention. Monthly Recurring Revenue (MRR). Net MRR Churn %. Average Revenue Per Account.

Metrics 60

Metrics Analytics Balance Sheet .Net 60

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

Steve Blank

MARCH 4, 2014

These groups are adapting or adopting the practices of startups and accelerators – disruption and innovation rather than direct competition, customer development versus more product features, agility and speed versus lowest cost. For most companies it feels like innovation can only happen by exception and heroic efforts, not by design.

IRR 335

IRR Startup Business Model Agile 335

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. Revenue When I look at an income statement I start by focusing on the revenue line. You need to understand the “quality” of the revenue.

Stock Options 227

Stock Options Startup Dilution Venture Capital 227

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 more mature organization may project future revenues based on their actual sales pipeline, with a probability adjusted percentage based on stage.

Balance Sheet 60

Balance Sheet Software Review Forecast Acquisition 60

View from Seed

NOVEMBER 18, 2020

You can read various articles out there which will give you the cursory facts about Airbnb like their overall revenue or profitability or how their business has faired here in 2020 in the COVID environment. But even with this profitable Q3, on a trailing twelve months (TTM) basis Airbnb has a GAAP net loss of >$1 billion.

North America 401

North America IPO Prospectus Europe 401

Tim Keane

MARCH 9, 2011

The overarching idea, of course, is to reduce the cost of capital while maintaining appropriate flexibility for the venture.  2]   Aligning interests in structure: cost and risk. Example one: Sustainable net operating income with some growth in a stable market.  Business success is the ultimate goal.

Finance 83

Finance Bootstrapping Startup Equity 83

Version One Ventures

JULY 13, 2015

Revenue is the income that the company receives from facilitating connections in the marketplace. With revenue and GMV, we can calculate take rate via: Revenue = GMV * Take Rate. GMV retention: average percentage of Month 1 GMV generated by sellers/suppliers in Month 12. Net promoter score (NPS).

Due Diligence 60

Due Diligence Retention Metrics Revenue 60

ReadWriteStart

AUGUST 26, 2022

So first, we were much more sort of with a high growth rate, and we did not even care about how we got the revenue when we got it. And now we are much more careful about revenue quality revenues. When you put those two things together, you get high-quality customers, high LTV, and acquisition at super low costs.

Partner 132

Partner Cofounder Retention Acquisition 132

YoungUpstarts

APRIL 9, 2015

The term ‘bad profits’ was coined by a customer loyalty guru named Fred Reichheld, who also developed the Net Promoter System. ” Your company’s Net Promoter Score (NPS) is a useful tool to gauge what percentage of your profits are bad. Bad profits are like bad karma for companies. It just makes sense.

Customer 100

Customer Revenue Analytics Denver 100

ConversionXL

SEPTEMBER 25, 2018

They knew high-level numbers like sign-ups but couldn’t dig deeper into their onboarding flow or retention. Instead, they asked for vague information like “track our onboarding performance” or “track user retention.” Our journey takes places across the following stages: Acquisition, Activation, Retention, Revenue, and Referral.

Retention 107

Retention Metrics Analytics Channel 107

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

ConversionXL

NOVEMBER 22, 2022

Cost per click: Track ad spending to improve performance Where to track CPC 12. Customer acquisition cost: Prevent reckless spending Where to track CAC 13. Customer Lifetime Value: Learn how to increase retention Where to track customer lifetime value Conclusion. In GA4 go to Reports > Life cycle > Retention.

Metrics 105

Metrics Analytics Marketing Acquisition 105

ConversionXL

NOVEMBER 15, 2016

The goals of these companies could be quite different depending on the desired quantity, quality, and cost of customers. visit → sale (better indicator of revenue, but this increases the duration of the test). visit → sale (better indicator of revenue, but this increases the duration of the test). Gross margin.

Conversion 48

Conversion Churn Rate Retention Metrics 48

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

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

ConversionXL

AUGUST 13, 2019

It’s common for companies to put a revenue figure on what it means to be successful in SaaS. But only 400 software companies have made it to the $500M revenue mark. Chances are you’ve been told to focus on metrics like: Monthly Recurring Revenue (MRR); Lifetime Value (LTV); Customer Acquisition Cost (CAC).

Metrics 117

Metrics SQL Retention Churn Rate 117

YoungUpstarts

APRIL 19, 2015

Gauge word-of-mouth promotion with the Net Promoter Score. The Net Promoter Score (NPS) is a popular way of measuring customer loyalty through understanding word-of-mouth marketing. But using the Net Promoter Score as a predictive analytic tool can help prevent disasters and identify winners early. Be aware of bad profits.

Customer 100

Customer Analytics Revenue .Net 100

Agile VC

FEBRUARY 2, 2012

How They Make Money : Facebook’s primary revenue stream is of course selling advertising on Facebook.com, which in total accounts for 85% of revenue. The next chunk comes from Facebook’s platform, in essence “taxing” the revenues of app developers like Zynga, which represents 15% of revenue.

IPO 100

IPO South Korea Venezuela Revenue 100

Hearpreneur

SEPTEMBER 27, 2020

While one may see profits as a success, others may view it as customer satisfaction, employee retention, or innovation. For example, are you measuring revenue growth, or profitability? That mission could be impactful, to invest in it’s team or community, become net carbon zero or promote more diversity within its staff.

Entrepreneur 134

Entrepreneur .Net Metrics Revenue 134

ConversionXL

MAY 3, 2017

A customer survey conducted by BigCommerce revealed that 51% of SMBs expect social advertising channels (specifically Facebook Ads) will play a major role in accelerating revenue throughout 2017 and beyond. Facebook ads are based on an ad auction system , so increased competition drives the cost of using the platform up.

San Jose 133

San Jose Customer Database Campaign 133

Venture Chronicles

APRIL 20, 2014

A successful organization that fed impressive growth, reaching growth and revenue records year over year, the marketing organization relied on a proven B2B outbound marketing model that precisely measured lead capture rates. Ping Identity has gone through a top to bottom transformation in marketing over the last year.

B2B 45

B2B Marketing SEM Bandwidth 45

ConversionXL

FEBRUARY 3, 2022

The better the experience, the more they recommend the product to others: Wise then used Net Promoter Score (NPS) surveys to determine if users would recommend it to friends. Use incentives to optimize customer retention and advocacy through gamification. Revenue grew by 637%. The result? Image source.

Product 102

Product Marketing Social Media Channel 102

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

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 429

Cofounder Seed Stage Valuation Metrics 429