Customer math for a new business
seths.blog
Customer math for a new business
How does the business acquire, retain, and monetize the customers to get to a desirable revenue output?
A message for Growth team naysayers.
four key numbers from your business: Current Customers New Customers Per Month Monthly Churn Rate Monthly ARPA (Average Revenue Per Account)
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Imagine another pair of businesses. The first makes $1 on each customer it signs up; the second makes $100,000 from each customer it signs up. To predict which company will grow faster, you need to know only one additional thing: how much it costs to sign up a new customer. Imagine that the first company uses Google AdWords to find new customers on
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