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The only 2 ways to build a $100 million business

Version One Ventures

Generally speaking, there are two ways (and only two ways) to scale a business to hit that $100 million threshold: Your business has a high Life Time Value (LTV) per user, giving you the freedom to spend a significant amount of money in customer acquisition. In addition, churn tends to rise as a company grows.

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Common B2B Challenges and How To Solve Them

ConversionXL

Companies experience a high churn rate because of bad product adoption. Our research showed that LTV was much higher compared to other verticals we have worked in the past which made the decision to change our approach a no-brainer. MQL cost significantly increased.

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Critical Key Performance Indicators (KPIs) for Founders

Up and Running

Customer churn rate: shows the percentage of customers lost in a given period (e.g., Revenue growth rate: measures the month-over-month percentage increase in revenue and is the most common and important metric for startups. Customer acquisition cost (CAC): find out how much it takes to acquire a customer (e.g.,

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Visualizing the Interactions Between CAC, Churn and LTV

A Smart Bear: Startups and Marketing for Geeks

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). The black horizontal line represents time and the unlabeled vertical access represents relative profit.

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Why Metrics Get Worse With Scale

Seeing Both Sides

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.

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9 Case Studies That’ll Help You Reduce SaaS Churn

ConversionXL

How Groove Reduced Churn by 71% By Defining “Why” Customers Quit. churn rate meant the company’s growth was unsustainable. Leverage what you learn to intervene with high-risk users and lower your churn rate. How Zendesk Reduced Churn With Human Touch. Now to the case studies…. The Execution. image source.

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How to Craft (Or Pivot) Your Agency Value Proposition

ConversionXL

Churn rate was high for a service that many organizations saw as a “nice to have.” Choose to expand vertically or horizontally. 3 ways to find proposition pivot or expansion opportunities. Image source ). Conduct client development interviews. I knew we needed to change things up to survive. There’s plenty of pie to go around.

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