Customer math for a new business
seths.blog
Customer math for a new business
" an honest assessment of customer acquisition cost looks at the length of your sales cycle, how many customers are truly new customers (as opposed to returning customers), and the total costs and resources required to support marketing efforts that lead to new customer acquisition. "
Andrew Chen • How To (Actually) Calculate CAC at andrewchen
Jordan Bester added
For starters, how much can you earn from a newly acquired customer down the line, and how much can you afford to spend to acquire that customer?
Valentin Radu • The CLV Revolution: Transform Your Ecommerce with Customer Value Optimization
how much does it cost the firm (on average) to acquire new customers, and how much is it spending (on average) to retain its existing customers?
Neil Bendle • Marketing Metrics: The Definitive Guide to Measuring Marketing Performance
"So many companies base their projections on the cost of acquiring a customer at the beginning. The problem is at the beginning, you're serving your ideal customer - the one that really wants your product. Usually your marginal customer gets more and more difficult to acquire."
Ben Thompson • Platforms, Ecosystems, and Aggregators
sari added
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
... See moreEric Ries • The Lean Startup: How Today's Entrepreneurs Use Continuous Innovation to Create Radically Successful Businesses
Find out the cost to serve each customer and the revenues associated with each customer for a given period. Do the subtraction to get profit for the customer and sort the customers based on profit.
Neil Bendle • Marketing Metrics: The Definitive Guide to Measuring Marketing Performance
Understand the steps that people go through to become clients Understand how many potential clients are at each stage Calculate the probability of future income streams
Robert Craven • Grow Your Digital Agency
Jordan Bester added