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.

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.

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.

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.

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.

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.

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.

What You Need To Know About The Churn Rate And How To Fight It

YoungUpstarts

There are 3 major metrics that will determine the overall success of a SaaS vendor: Customer Acquisition Cost (CAC). Professionalisms Bluesnap churn rate customer acquisition customer management customer retention SaaS software-as-a-service

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.

IPO 170

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.

.Net 171

Enhancing SaaS Business Growth via Incremental Improvements

The Startup Magazine

As such, most entrepreneurs focus all their energies on customer retention. Getting Customers, according to the above model involves six key steps: Prospects acquisition (S1 – Prospect). For the first phase (Getting Customers), this includes the Customer Acquisition Cost (CAC).

SQL 102

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.

What is an employee retention or M&A carveout plan?

Startup Company Lawyer

Due to aggregate liquidation preferences that may exceed the acquisition price in an M&A deal, common stock may be rendered worthless. In response to the problem of worthless common stock, some companies have implemented employee retention plans, which are also referred to as M&A carveout plans. Below are some common structures for employee retention plans and issues related to each alternative. Straight Retention Plans.

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.

Five Secrets A 25-Year Headhunter Wants You To Know

YoungUpstarts

We had near-perfect retention up until we sold the company, despite being located in the roaring Silicon Valley job market of the late 1990s. Professionalisms hiring practices hiring talent human resources Jeff Hyman talent acquisition talent management

Freemium vs. Free Trial: Which Gets You More Paying Customers (Not Just Freeloaders)?

ConversionXL

If freemium still seems like a barrier to acquisition, you’ve got plenty of money in the bank, and you’re crossing your fingers for a buyout by Google or Facebook, a fully free product may make the most sense. Those near-term sales, while enticing, may erode a brand and hurt retention.

[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 208

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.

How to Measure Content Marketing ROI: A Simple 4 Step Process

ConversionXL

Keep in mind, however, that there are other, more complicated ways content provides an ROI: Better customer retention. Acquisition Blog Digital Analytics beginnerKnowing how to measure content marketing ROI, like measuring optimization ROI , is hard. And complicated. Or is it?

From Loyalty Programs To Fan Clubs, A Paradigm Shift

YoungUpstarts

Local businesses in Singapore report up to 5x increase in repeat business , up to 7x increase in fan acquisition rates and 10x increase in word of mouth. Thinking Aloud Aneace Haddad customer relationship management customer retention loyalty program Taggo

How to Measure Content Marketing ROI: A Simple 4 Step Process

ConversionXL

Keep in mind, however, that there are other, more complicated ways content provides an ROI: Better customer retention. Acquisition Blog Digital Analytics beginnerKnowing how to measure content marketing ROI, like measuring optimization ROI , is hard. And complicated. Or is it?

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.

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.

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.

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?

Sell on Amazon: Go solo or join the ecommerce giant?

ConversionXL

He also hosts the highly-acclaimed Ecommerce Influence Podcast, where he shares advanced acquisition and retention strategies for fast-growing online brands. Should you sell on Amazon.com?

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

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.

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.

Is Your SaaS Go-to-Market Strategy Tsunami-Proof?

ConversionXL

According to ProfitWell , customer acquisition costs (CAC) have increased by over 55% in the last 5 years: At the same time, customer willingness to pay for features has dropped by 30% during that same period: So, on one hand, we have rising costs; on the other, we have a lower willingness to pay.

10 Areas Where You Can Win With Predictive Analytics

Startup Professionals Musings

Companies need the same service on partner and acquisition candidates, even vendors. Customer retention with churn modeling. Every business wants to predict which customers are about to leave, and for what reasons, so they can target their retention efforts. Without predictive targeting, a retention campaign may cost more than it gains. Traditional business intelligence (and data mining) software does a very good job of showing you where you’ve been.

The 10 Most-Read Articles of 2018

ConversionXL

You’re likely familiar with different growth frameworks, like AARRR (Acquisition, Activation, Retention, Referral, Revenue). It all starts with Acquisition, and one of the biggest acquisition channels is organic search.

The unprofitable SaaS business model trap

A Smart Bear: Startups and Marketing for Geeks

Even with a great retention rate (e.g. time to earn back the revenue to cover all your customer acquisition expenses) 75% annual retention. Drastically reduce the cost of customer acquisition.

So you just raised your A round, now what?

Version One Ventures

With that said, you’ll need to understand what sales and marketing channels work (and scale), what your customer acquisition costs are, and how much a typical user is worth over their lifetime with your company. . For example, if you are building a consumer business, you should be watching for the following metrics: LTV/CAC: Ideally, your Lifetime Value: Customer Acquisition Cost ratio is over 4:1. Retention rate: What percentage of users can you retain quarter over quarter?

RetailMeNot Names Tarleton as its New Chief Marketing Officer

SiliconHills

Tarleton will be in charge of “all consumer brand advertising, customer acquisition and retention, search engine marketing, public relations, internal communications, business-to-business marketing, and customer relationship management,” according to a news release. RetailMeNot Tuesday named Marissa Tarleton as its new chief marketing officer for North America.

Eight Reasons Why Your Subscription Model Customers May Be Jumping Ship

YoungUpstarts

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.

Increase Repeat Purchases with Cohort Analysis

ConversionXL

In my daily work with ecommerce brands, I see two types of companies: The first type focuses on acquisition and conversion. The second relies on retention. Overall acquisition costs for both B2C and B2B have gone up by 50% in the past five years.

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.

Mixpanel vs. Google Analytics: The 2018 Guide

ConversionXL

Google Analytics is the standard for measuring acquisition—identifying the sources of traffic to your website or app. You’ll be able to see which acquisition channels are best for long-term retention or lifetime value, not simply those that drive initial conversions.

Savvy Entrepreneurs Use Data Mining To Look Forward

Startup Professionals Musings

Companies need the same service on partner and acquisition candidates, even vendors. Customer retention with churn modeling. Every business wants to predict which customers are about to leave, and for what reasons, so they can target their retention efforts.