Retention Optimization: How to Increase the Value of a Conversion

ConversionXL

Well, it’s retention. (No, Consider that 40% of an ecommerce store’s revenue is created by 8% of its customers and that 82% of companies agree that retention is cheaper than acquisition. Why Is Retention Important? Homejoy’s Retention Dilemma. Short-Term Retention.

Don’t get screwed: Focus on customer retention over acquisition

The Next Web

The post Don’t get screwed: Focus on customer retention over acquisition appeared first on The Next Web. Andrew Fullerton is the VP of Sales at Emarsys.

Trending Sources

A look at the Constant Contact acquisition

StartupCFO

The Deal: Acquisition: Endurance buying all of Constant Contact’s outstanding shares. Strategic Rationale : Endurance has done 40 acquisition since inception; M&A is a core competency for Endurance. Retention then (1/churn) is the main driver of customer lifetime value.

How To Develop Your Customer Retention Strategy

ConversionXL

Has your company’s customer retention rate increased, decreased or remained status quo over the past five years? Have you outlined and initiated a formal customer retention strategy? And yet…Forrester found that 70% of CMOs did not list retention as a top priority.

The 4 Phases For Developing A Customer Retention Strategy

ConversionXL

Has your company’s customer retention rate increased, decreased or remained status quo over the past five years? Have you outlined and initiated a formal customer retention strategy? And yet…Forrester found that 70% of CMOs did not list retention as a top priority.

The 4 Phases For Developing A Customer Retention Strategy

ConversionXL

Has your company’s customer retention rate increased, decreased or remained status quo over the past five years? Have you outlined and initiated a formal customer retention strategy? And yet…Forrester found that 70% of CMOs did not list retention as a top priority.

How to Project Customer Retention for a Subscription Business

Lightspeed Venture Partners

Recently, Eric Liaw sent us a very interesting May 2006 paper entitled “How to Project Customer Retention”, authored by marketing professors Peter Fader (Wharton) and Bruce Hardie (London Business School) and published in the Journal of Interactive Marketing in 2007. In it, the professors explain how previous attempts to project retention rates using line-fitting regression models failed, even after introducing quadratic or exponential functions.

Best Way to Track Customer Retention

Inc Startups

Dear Jeff, I own a fitness facility and obviously member retention is a major factor. The problem is I''ve seen customer retention calculated different ways. Your retention rate for the period was 90 percent. The same data lets you calculate customer acquisition rate.

Retention and Testing – misleading signposts and deadly slow speed limits

startupengineering

He was getting signups but not good retention, and was worried that the process of testing new features to fix the problem would take forever. Thought we’d share it: Well, retention is the right question – a lot of startups appear to go wrong by focusing on acquisition instead of retention. Here’s a comment to an entrepreneur.

Kindred Disciplines: Growth Equity and Growth Hacking

Non-Linear Growth

Growth hacking definitions abound , but generally emphasize a data driven, creative and flexibly opportunistic approach to customer acquisition. Growth hacking is now a mainstream term in tech circles, particularly those that are consumer-focused.

Five Tips For Startups To Reduce Customer Churn

YoungUpstarts

But as the company grows, it’s important to make the transition from acquisition to retention. Professionalisms customer acquisition customer retention John Rode sales sales lead managementBy John Rode, Senior Director of Demand Gen at Preact.

5 Ways to Improve Customer Retention

Inc Startups

Building these steps into your operations will help you to significantly improve customer retention and create significant value for your business. Here are five steps we recommended to increase customer retention: 1. Increasing the power of the service organization and the sales team to address customer complaints promptly and offer retention-oriented promotions are other ways to appease dissatisfied customers.

7 Easy and Effective Customer Segments to Target in Facebook Ads

ConversionXL

Facebook Custom Audience campaigns will help you cover the gap, and get some real mileage out of your acquisitions. Your goal is retention. You can increase a company’s profitability from 25% to 95% by increasing your customer retention rate.

What Acquihire Really Means

Feld Thoughts

If you are a Google watcher, aspire to have you company acquired by Google some day, or just want to understand Google’s approach to acquisitions (which Geis calls “semi-organic growth”) this is a must read book that is well worth the money. Geis covers a detailed history of Google’s acquisitions along with a framework for how to think about them. If you take it to its logical conclusion, acquihire starts to be a substitute for acquisition.

Marketplace KPI Dashboard

Version One Ventures

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. GMV retention: average percentage of Month 1 GMV generated by sellers/suppliers in Month 12.

How To Convert Free Trial Users Into Paying Customers

YFS Magazine

Grow Marketing & Sales conversion optimization conversion rates customer acquisition customer retention email marketing free trial freemium landing pages marketingMost marketers know, it is a tough task to boost conversations rates.

How to Project Customer Retention for a Subscription Business

Lightspeed

Recently, Eric Liaw sent us a very interesting May 2006 paper entitled “How to Project Customer Retention”, authored by marketing professors Peter Fader (Wharton) and Bruce Hardie (London Business School) and published in the Journal of Interactive Marketing in 2007. In it, the professors explain how previous attempts to project retention rates using line-fitting regression models failed, even after introducing quadratic or exponential functions.

Five Critical Ways To Become Indispensable In Business

YoungUpstarts

His company The Five Abilities, LLC is a management consulting firm in Seattle, Washington, where he helps salespeople learn habits that improve customer acquisition and retention results.

Conversion: The Most Important Internet Metric of All (Revisited)

abovethecrowd.com

Internet analytics can be roughly broken down into two simple activities – customer acquisition and customer optimization. Nearly every Internet company on the planet has invested in some form of the first activity, customer acquisition.

6 Reasons Why Wearables Are The Future Of Fitness

Inc Startups

Wearables provide important data, gamification aspects and socialization that should be embraced by gyms to increase membership acquisition and retention

Five Mistakes Organizations (Unknowingly) Make That Drive Customers Away

YoungUpstarts

In other words, you’re directing too much money toward acquisition and hardly any toward retention. The key to business, I think, is being great at both and at using those you’ve retained to help with your acquisition curve.

Gail Goodman – The Long, Slow SaaS Ramp of Death

Business of Software Blog

How will you drive retention and referrals? How will you drive retention and referrals? LTV = (ARPU * retention) * gross margin / (-) cost of acquisition. BoS Insights customer acquisition customer retention gail goodman metricsThis is a summary of Gail Goodman’s Business of Software 2012 presentation. The Silver Bullet? The inexperienced assume there is a silver bullet to success. Viral. Network effect.

4 New Customer Loyalty Rules Drive Business Success

Startup Professionals Musings

I believe his four basic rules should always come first: Customer retention is priority number one. Marketing-driven customer acquisition. Word-of-mouth driven customer acquisition. In the past, retention and loyalty were often used interchangeably.

How to plan to make a successful acquisition

Berkonomics

One of my company CEO’s recently described his rule for acquisition success, and it resonated with me as a great goal for planning during acquisition exercises.

Insuring Directors And Officers Through M&A And IPO Events

YoungUpstarts

Corporate transactions including mergers and acquisitions (M&A) and initial public offerings (IPO) bring necessary capital and resources to a growing company. And in the last few years, these cases have prompted D&O insurers to put specific M&A retentions into their policies.

Being Acquired? Here’s How You Negotiate Your Retention

Inc Startups

Lemkin talks carrots and sticks when negotiating retention during your startup''s acquisition Jason M.

18 Ways to Make Your Financial Model Stand Out to Investors

David Teten

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”). The median investor looking at your proposal is in her 40s. Her eyes are going, not to mention her brain.

This Golden Goblet contains the secret to subscription commerce, I swear

The Next Web

Recurring revenue is a wonderful concept and, when a subscription business is firing on all cylinders, recurring revenue compounds beyond the costs of customer acquisition. Longstanding customer retention.

Customer Acquisition Strategies

Journey of a Serial Entrepreneur

I am in the process of building a slide deck these days and was doing some research online for slide decks that dealt with the issue of customer acquisition & marketing. Customer Acquisition & Monetization – Keys to your Business Model.

Small Business and Startups: Tips for Reducing Refunds

crowdSPRING Blog

How often does your business have an opportunity to increase bottom-line profitability, improve customer retention, and generate positive word-of-mouth with a zero-dollar investment in marketing or advertising?

How To Calculate & Increase Customer Lifetime Value

ConversionXL

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. Determining Your Customer Acquisition Costs.

[Infographic] Five Long Term Recruitment Trends In Southeast Asia: LinkedIn

YoungUpstarts

Hiring trends are evolving rapidly, and in some cases even veteran talent acquisition professionals have been flatfooted as they seek to deal with the changing talent landscape. It came a close second to improving employee retention which was a percentage point higher.

Asia 14

Why Misunderstanding Startup Metrics Can Cost You Your Business

Both Sides of the Table

Perhaps the most misused terms I see these days from entrepreneurs involve CAC (customer acquisition costs) and LTV (life time value) and a lack of understanding these critical components is driving many companies to premature failure. Customer acquisition cost.

The Business Model Canvas Can Get Your Startup Funded

Startup Professionals Musings

Every entrepreneur needs to know and communicate the total costs associated with their solution or product, including cost of goods sold, customer acquisition costs, capital costs, operational expenses, and partner costs.

When to ask for annual prepayment

StartupCFO

So, annual prepayments should not be done to improve conversion and retention rates. With a SaaS business model, you pay to acquire the customer on day 1 and only recover that acquisition cost over time as you collect subscriptions. When you get paid upfront, there is no cash gap unless your acquisition cost is greater than one year’s subscription revenue. Source: [link].

Customer Experience Controls Business Growth Today

Startup Professionals Musings

Here are four basics that always apply: Customer retention is priority number one. Marketing-driven customer acquisition. Word-of-mouth driven customer acquisition. In the past, retention and loyalty were often used interchangeably.

AARRR is from the Pirate’s Point of View

Market by Numbers

I posted the graphic in a blog post which garnered lots of attention, including an important comment from Dave himself: btw, note that AARRR isn’t exactly sequential… in fact, i’d emphasize Activation & Retention *first*, then go after Acquisition & Referral, then optimize for Revenue.

Corporate Development 101: What Every Startup Should Know

OnStartups

Our charter was simple: add significant market cap value through acquisitions, investments, and partnerships. Could be for potential partnerships — maybe an acquisition. Is there any point in talking with corporate development unless I am thinking about an investment or acquisition? -

Pacific Crest’s 2011 SaaS Survey

For Entrepreneurs

There is some great data on topics such as growth rates, cost of customer acquisition, churn/retention, expense models, capital efficiency, etc. Pacific Crest, an investment banking firm with a strong focus on SaaS, has surveyed a 70 SaaS companies with very interesting results. The full survey, which was put together by David Spitz and his team [.]. Building for Success SaaS CAC SaaS churn SaaS pricing

Senior Product Management Roles

The Product Guy

Senior Product Manager – Consumer @ ClassPass (New York City) Keywords: Engagement, Mobile, Product Management, Retention [link]. Senior Product Manager – Growth/Acquisition @ ClassPass (New York City) Keywords: Acquisition, Growth, Mobile, Product Management, Startup [link] Filed under: product jobs Tagged: product management. If you are a great product person looking for a great product job, or vice versa, check out our job board.