Version One Ventures

SEPTEMBER 19, 2012

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.

Churn Rate 168

Churn Rate Viral Acquisition Cofounder 168

Up and Running

SEPTEMBER 22, 2021

If not, now is the perfect time to get in on this effective and easy-to-implement user acquisition channel. Referral marketing is a user acquisition channel that allows you to leverage your existing user base for growth by incentivizing them with rewards. This is why referral programs are a great low-risk channel.

Programming 141

Programming Churn Rate Design Campaign 141

ReadWriteStart

OCTOBER 2, 2023

Use this voice consistently across all marketing materials and communication channels. Customer churn rate: Customer churn rate is the percentage of customers who cancel their monthly SaaS subscriptions. Customer acquisition cost (CAC): CAC is the money a company spends to acquire a new customer.

Design 105

Design Product Churn Rate Architecture 105

ConversionXL

NOVEMBER 17, 2022

It involves collecting and measuring data from interactions with your website, ecommerce store, social media channels, and mobile apps to make decisions based on audience or user behavior. For example, which channels drive the most traffic to your product page? Customer acquisition cost (CAC). by smartphone, tablet, or desktop).

Analytics 106

Analytics Metrics Channel Campaign 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.

Marketing 97

Marketing Campaign Software Review Email 97

ConversionXL

AUGUST 21, 2014

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 Research. image source.

Retention 106

Retention Churn Rate Metrics Software Review 106

Up and Running

JUNE 21, 2017

But keeping track of where a customer came from is very hard, especially when you start diversifying your marketing channels to campaigns that don’t have a direct conversion. Once you have goals defined, you can easily filter your data to know which channels are driving these conversions.

Marketing 98

Marketing Analytics Campaign Metrics 98

ConversionXL

AUGUST 12, 2016

LTV = ARPA * % Gross Margin / % MRR Churn Rate. Customer Acquisition Cost (CAC). Because pumping hard-earned money into a marketing channel with negative returns will kill your SaaS. Customer Acquisition Cost refers to the resources that a business uses in order to acquire an additional customer.

Software Review 48

Software Review Metrics Revenue Acquisition 48

ConversionXL

OCTOBER 11, 2022

The average ecommerce store devotes more than 80% of its marketing budget to customer acquisition. A good retention rate means people continue to choose you over a competitor, deepening customer relationships and reducing churn rate. Omnichannel marketing is providing a joined-up, frictionless experience across channels.

Retention 111

Retention eCommerce Channel Community 111

The Equity Kicker

SEPTEMBER 26, 2013

Adding users via channels that will never become economic. High churn rates. High return rates. revenues per user > cost of acquisition + cost of delivery). High referral rates. incentivised traffic, users recruited under false pretences). Selling products without a clear path to positive gross margin.

Churn Rate 91

Churn Rate .Net Acquisition Channel 91

David Teten

DECEMBER 3, 2019

A tool like Quuu identifies relevant, shareable content to keep your social media channels active. . 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.

Technical Review 78

Technical Review Software Review Analytics Private Equity 78

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

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

However, with every new technology, channel, and distraction served up by the internet, that journey becomes less linear, and the traditional funnel becomes less relevant. Social media, on the other hand, are browsing channels. Cost per acquisition (CPA). Conversion rate per channel. Lifetime value (LTV).

Customer 140

Customer Marketing Social Media CPA 140

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. . #6 Passion While everyone wants to make money, good VCs look for more in an entrepreneur than the desire to cash out.

San Francisco 48

San Francisco Churn Rate Silicon Valley Engineer 48

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

MARCH 15, 2016

And only a little over 25% of SaaS companies with less than 10K users spend money on user acquisition. So, the channel selection (vs. Churn rate is proportional to the distance between sign-up and value. Onboarding is about retention, not acquisition. So, what does that mean? Facebook, for example) is strategic.

Mobile 48

Mobile Retention Email Software Review 48

maplebutter.com

JANUARY 8, 2013

I just launched a small online retail business last week, and feel a bit lost about marketing ideas and how to get the most out of social media channels. Acquisition / Lifetime Value, etc. How can I lower my apps churn rate? customer acquisition, like Launchrock, you called that something, what was that again?

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