This presentation is for startups who understand who their customers are and have their product market fit.
We take a look at how you can scale and grow your acquisition and retention. Looking at some cool tips and techniques for both customer acquisition and retention.
37. Customer Retention Rate =
((# Customers at End of Period - # Customers
Acquired During Period))
/ # Customers at Start of Period)) X 100
HOW TO CALCULATE YOUR CUSTOMER RETENTION RATE?
52. Metric What it means if number increase?
Customer Acquisition Cost (CAC) All sales & marketing costs incurred in the period - divided
by total number of customers earned in the period
Marketing % of Customer Acquisition
Cost (M%-CAC)
Take all marketing costs - divided by all sales & marketing
costs used to compute CAC
Ratio of Customer Lifetime Value to CAC
(LTV:CAC)
To compute LTV, take annual payments from a customer,
adjust for gross margin and divide by cancellation rate or
churn. Then divide LTV:CAC to get ratio
Time to Payback CAC Divide CAC by how much customers pay you each month
Marketing Originated Customer % Take all the new customers you signed in the period and
look at what % of them started with a lead that marketing
generated