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Customer Acquisition & Monetization
Transcript of Customer Acquisition & Monetization
Customer Acquisition Cost (CAC) and Life Time Value (LTV)
Build it, they will come.... (major mistake)
Building Sales & Marketing Machines
Key Funnel Metrics (to reduce CAC)
Key Funnel Metrics (to increase LTV)
anatomy of a start-up
acquiring customers is at the intersection of art and science... get their attention and find a (cheap and effective) way to keep their attention
rule= LTV > x3 CAC
recover CAC in < 12 months
in a nutshell...
Customer acquisition and monetization is about ...
(1) what are the cost ingredients in making your product?
(2) how much does it cost to get people?
(3) how long does it take to get them? how fast will they grow? what strategies will increase their conversion rate?
(4) what is the best business model that you can achieve these goals?
CAC= what you pay to acquire 1 customer to by your product
CAC= (marketing campaign through a specific channel) / (# number of people acquired through that campaign)