ReadWriteStart

AUGUST 26, 2022

The vast majority of their customer acquisition is word of mouth. When you put those two things together, you get high-quality customers, high LTV, and acquisition at super low costs. And you know, a cost goes out with an acquisition, so whether it’s hiring a salesperson, commissions, or paying Google. David Zhang.

Partner 132

Partner Cofounder Retention Acquisition 132

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

SVPG

APRIL 6, 2015

Quite a few of you wrote to me and said this was a hot topic at your company, and several asked about the same basic topic, but less from an engineering perspective and more from a product and design perspective. Reducing the churn rate can definitely be a hard problem, and there are likely any number of ways to approach fixing this.

Churn Rate 60

Churn Rate Leadership Design Mobile 60

Cracking the Code

DECEMBER 11, 2015

When Elon Musk received $200 million from the proceeds of the PayPal acquisition in 2002, he re-invested everything to build the next big thing: $100 million in SpaceX and $100 million in Tesla. You can read the full story here ) #8 Engine Developing a scalable sales and marketing engine is a key element of success for SaaS companies.

San Francisco 48

San Francisco Churn Rate Silicon Valley Engineer 48

Seeing Both Sides

OCTOBER 24, 2015

Since I see a few common patterns of mistakes, I thought I'd add to the LTV literature and point out the top three reasons many investors roll their eyes when they see entrepreneurs present inflated, poorly constructed LTVs: 1) Your churn rate is understated. A monthly churn rate of 1%? But you are not mature.

Churn Rate 20

Churn Rate Early Stage Revenue Metrics 20

Seeing Both Sides

FEBRUARY 9, 2015

Conventional wisdom suggests that the most important metrics for a startup - such as unit economics, cost of acquisition, lifetime value, churn rates - typically get better with time. Thus, more mature companies naturally have slower growth rates than younger ones. Customer acquisition is like drilling for oil.

Metrics 20

Metrics Churn Rate Acquisition SEM 20

ConversionXL

NOVEMBER 17, 2022

The company once had the market’s highest churn rate and lowest Net Promoter Score (NPS). By switching from manual analysis data to predictive analytics, Sprint could quickly analyze user behavior to spot customers at risk of churn and identify retention offers. Customer acquisition cost (CAC). For SEO analysis: Ahrefs.

Analytics 106

Analytics Metrics Channel Campaign 106

ConversionXL

AUGUST 21, 2014

In other words, growth slows, becomes stagnate or worse, churn is so bad, you’re losing more customers than you are gaining every month. That’s why you need to be simultaneously feeding your growth engine , while monitoring churn and your other startup metrics. churn rate meant the company’s growth was unsustainable.

Retention 106

Retention Churn Rate Metrics Software Review 106

ConversionXL

FEBRUARY 1, 2018

It’s no secret that email is the most effective acquisition channels for any marketer. Involuntary Churn Prevention. If you’re like most SaaS marketers, you’re using content marketing as an acquisition channel. The problem, though, is as your company grows, so, too, does your churn rate. Reactivation. Activation.

Marketing 97

Marketing Campaign Software Review Email 97

Up and Running

AUGUST 21, 2014

If you’re in a really crowded area, let’s pretend one of you is selling flowers and competing in the online flower market, it’s going to be really hard to rank in search engines. All that money that you spend in pay-per-click is going to go into your customer acquisition cost. Those keywords are very, very expensive.

Metrics 84

Metrics Startup Churn Rate Forecast 84

David Teten

DECEMBER 3, 2019

Some notable metrics are revenue growth rates, free cashflow, leverage ratios, historical financing amounts, returns on marketing spend, customer acquisition costs, lifetime value of customers, customer churn rates, and team social scores. ff Venture Capital hired two full-time engineers to build out Totem.

Technical Review 78

Technical Review Software Review Analytics Private Equity 78

Startup Lessons Learned

MARCH 21, 2013

If you're working on the Sticky Engine of Growth , you're focused on very different metrics from those that you care about in the Viral Engine of Growth. Here's what they have to say about churn rates in SaaS businesses: The best SaaS sites or applications usually have churn ranging from 1.5% to 3% a month.

Analytics 167

Analytics Lean Metrics Churn Rate 167

SVPG

MARCH 10, 2014

Such as the lifetime value of a customer, or the customer churn rate, or the customer acquisition costs across all sources. So maybe you instrument your engine to be able to report this data usage and then you can try to correlate. Most analytics are snapshots in time, such as what happened yesterday.

Analytics 63

Analytics Churn Rate Aggregator Acquisition 63

maplebutter.com

JANUARY 8, 2013

If you’re looking for a designer, engineer, or biz marketing guy – go to meetups / conferences that those people would go to. With that live, you’ll be able to show other smart engineers and advisors that you’re willing to take some risk and build something. Acquisition / Lifetime Value, etc. A+ engineering talent.

Technical Review 44

Technical Review Startup Cofounder Software Review 44

Up and Running

MARCH 11, 2015

That moves into the customer acquisition strategy. This includes again another acronym I’m going to share, CAC, the cost to acquire a customer, the customer acquisition cost. It’s rare that investors will invest in a company that’s all engineers, or all creative. Are you doing an acquisition? Think about that.

Technical Review 60

Technical Review Software Review Due Diligence Exit Strategy 60

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

Cracking the Code

OCTOBER 10, 2008

This is misleading because in a recurring revenue model, Customer A is much more valuable to the business (assuming typical churn rates) as they will likely generate $360,000 of revenue for the business with renewals over that same three year period. Cashflow is the other key metric. Philippe Botteri. Bessemer SaaS Law #2.

Software Review 48

Software Review North America Europe Metrics 48

ConversionXL

OCTOBER 30, 2021

In digital marketing, this will most likely be through search engines and social media. Cost per acquisition (CPA). Measure the retention value of your customers by looking at: Churn rate: The number of customers that stop paying in a given period (e.g., Base your strategy around ways people will find you.

Customer 140

Customer Marketing Social Media CPA 140