Steve Blank

DECEMBER 2, 2013

Here’s what happened when an extraordinary Digital Health team gained several critical insights about their business model. Having a multisided market with five segments is a pretty complicated business model. The first was reducing what they thought was a five-sided market to a simpler two-sided one.

Customer 328

Customer Churn Rate Customer Development Lean 328

ReadWriteStart

MARCH 3, 2021

Growing a business is always challenging, but it’s often the hardest in the earliest stages of development. You’ll be operating with limited resources, limited knowledge, and quite possibly, a business model poised to change in the immediate future. Boost Customer Retention.

Early Stage 125

Early Stage PPC Retention Churn Rate 125

Up and Running

NOVEMBER 12, 2018

Defining the problem you’re trying to solve is an important part of your business plan because it’s the first place where you’ll demonstrate that idea is viable—that you can actually make money with your business model and idea. Share of the Market (SOM) : Your SOM is who you will reach in your first few years of business.

Business Plan 63

Business Plan Curation Balance Sheet Intellectual Property 63

Up and Running

FEBRUARY 12, 2019

Outline your business model. Your business model tells an investor how your idea will (or does) convert into being economically viable. The best way to show you how to communicate your business model is to show you an example of a good one. Your business model should answer the questions: What do you sell?

Sweat Equity 122

Sweat Equity Churn Rate Elevator Pitch Forecast 122

ConversionXL

AUGUST 12, 2016

A flowing sales funnel is crucial in any business, but even more so with SaaS businesses… Unlike other business models, revenue is generated over an extended period of time. LTV = ARPA * % Gross Margin / % MRR Churn Rate. Customer Acquisition Cost (CAC). Optimizing Customer Lifetime Value.

Software Review 48

Software Review Metrics Revenue Acquisition 48

ConversionXL

OCTOBER 30, 2019

Now try to think of the last time you experimented with something other than your acquisition strategy. Article after article, course after course, conference talk after conference talk addresses acquisition experimentation—getting more conversions at the top of the funnel. Every tip is acquisition-centric. Acquisition.

Retention 101

Retention Metrics Churn Rate Acquisition 101

Up and Running

JANUARY 24, 2014

Outline your business model. Your business model tells an investor how your idea will (or does) convert into being economically viable. The best way to show you how to communicate your business model is to show you an example of a good one. Your business model should answer the questions: What do you sell?

Sweat Equity 138

Sweat Equity Churn Rate Forecast Business Model 138

Startup Lessons Learned

MARCH 21, 2013

Start with metrics in mind To help with this, the book looks at dozens of metrics—such as churn, customer lifetime value, viral coefficient, acquisition cost, uptime, and engagement—and suggests where that metric should be before you can move on to the next stage of your business. to 3% a month.

Analytics 167

Analytics Lean Metrics Churn Rate 167

Lightspeed Venture Partners

NOVEMBER 19, 2012

The company launched six months ago and so far has grown to 110 subscribers, with all customer acquisition coming from PR and referrals. They are seeing an 85% monthly renewal rate. All e-commerce businesses should be examined through the lens of customer acquisition cost and lifetime value. The others all passed as well.

Pre-Money Valuation 166

Pre-Money Valuation Alabama Valuation Churn Rate 166

ConversionXL

OCTOBER 30, 2019

Now try to think of the last time you experimented with something other than your acquisition strategy. Article after article, course after course, conference talk after conference talk addresses acquisition experimentation—getting more conversions at the top of the funnel. Every tip is acquisition-centric. Acquisition.

Retention 48

Retention Metrics Churn Rate Acquisition 48

David Teten

DECEMBER 3, 2019

Technographics vendors such as Builtwith , Datanyze , HG Data , Stackshare, and Stacklist help CEOs identify the right tech platform on which to build their business; they’re also helpful for investors to due diligence a company’s tech stack choices. Similarly, Corsis uses benchmarking data to understand technology spend patterns.

Technical Review 78

Technical Review Software Review Analytics Private Equity 78

Cracking the Code

OCTOBER 10, 2008

You validated our business model and added huge value to our efforts. 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.

Software Review 48

Software Review North America Europe Metrics 48

Up and Running

APRIL 27, 2012

These students are typically attracted to Internet and technology start-ups, given that these share favourable industry characteristics such as significant addressable markets, low barriers to entry, modest initial capital requirements and relatively low costs of customer acquisition. These entrepreneurs soon find out it is not.

Metrics 68

Metrics Nigeria Ratchet Churn Rate 68

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

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

maplebutter.com

JANUARY 8, 2013

I’m not afraid to pick up the phone, cold call someone, use LinkedIn to find someone who’s recently left a company that might be considered competitive and ask them for advise around the business model and marketplace. Acquisition / Lifetime Value, etc. Now our biz model is lighter, more flexible. So build a strong base.

Technical Review 44

Technical Review Startup Cofounder Software Review 44

ConversionXL

MARCH 5, 2014

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. In David Skok’s post, he says: “Life Time Value > Cost of Acquisition. (It

Customer 133

Customer Churn Rate Retention Acquisition 133

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. Are you doing an acquisition? The customer acquisition cost that I talked about. Then referral rates and opt-out rates.

Technical Review 60

Technical Review Software Review Due Diligence Exit Strategy 60