I’m hearing from many founders that this year's big goal is profitability. One metric to watch is customer acquisition costs. As you grow, the cost tends to follow the law of diminishing returns. The good old ways (i.e. 2 years ago) meant ramping up your CAC as long as customers were buying. Now you have to ask yourself, “How can we get more out of what we’re doing?” One of my clients had the goal of profitability by the end of 2024. We knew getting more leads at the top of the funnel wasn’t the answer. While working together, we focused on optimizing your funnel, improving sales and marketing efficiency and focusing narrowly on their ideal customers. Here’s what we worked on: ✅ Modelling the data to determine which part of the funnel will impact lead-to-customer conversion rates. ✅ Reducing the time it took for demo requests to be followed up through automation. ✅ Coaching reps on better discovery to get deeper into pain points. ✅ Improving meeting attended conversion rates for leads that came from outbound. ✅ Add different payment terms and schedules to ease the burden of upfront costs. After 60 days, they improved their discovery-to-proposal conversion rate by 27%. There wasn’t a silver bullet that solved everything. But every change compounded. In the world of profitability, it’s about getting more out of what you’re already doing. If that’s on your mind too, DM me to chat!
Daniel Ku’s Post
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One of the conversations we have over and over again with founders is this one around how to get further funding from their investors. And the conversation we have with investors is that their founders aren't great at sharing information about their financials. What we find is most founders are unknowingly creating this road block with their investors, so how do you communicate more successfully with your investors? Understand your key business metrics and talk to them consistently. The key metrics will be different from business to business but typical metrics could cover Topline revenue, split by geography or product if relevant Gross margin Net margin Number of customers Average revenue or spend per customer New customers or clients Customer churn (lost customers) Net new customers or clients (Gross new less lost customers) Customer acquisition cost The important thing here is not to just understand what the key metrics are driving the business but maintaining consistency in the calculation (unless there is a clear reason, clearly communicated for the change) and show trending over time so investors can understand what is happening in the business
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“I don’t know how to start tracking my growth metrics.” Let me eliminate that excuse for you right now with this simple guide. Here’s how it works: Key Metrics to Track → Churn Rate → Customer Growth Rate → Customer Lifetime Value (LTV) → Customer Acquisition Cost (CAC) → Monthly Recurring Revenue (MRR) Why You Need These Metrics → Optimize sales & marketing efforts → Track startup growth trajectory → Guide investor presentations → Evaluate product-market fit What to Do Next → Monitor the LTV/CAC ratio → Keep a close eye on churn to ensure growth → Focus on increasing MRR to show strong PMF If you follow this strategy, you’ll have a clear view of your startup’s health and growth potential. Now, get started! PS. Grab a high-res image at: https://lnkd.in/g7ShBpyx PPS. Join 5,000 people at: thestartupfinance.com
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Cut your CAC in half, double your profit – without spending a dime more. Businesses are burning cash on customer acquisition. Yet, 68% don’t even know their true CAC. Tracking it isn’t optional anymore – it’s your competitive edge. Ask yourself: Are you pouring money into channels that just don’t convert? Or worse, ignoring the data altogether? The game changes when you track every dollar from lead gen to sale. You’ll know what’s working – and where to stop wasting time. The path to profit isn’t always about selling more; it’s about spending smarter. Double down on what works. Ditch what doesn’t. Simple. #BusinessGrowth #CustomerAcquisition #MarketingStrategy #DataDriven
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Many, many years ago, I used to measure revenue the wrong way (and many businesses still do)... I used to focus on gross revenue and quarterly growth as indicators of success. Little did I know that solely relying on these metrics led to incomplete insights and missed opportunities. Gross revenue might show the finish line... But it doesn’t tell you what’s driving growth, or where inefficiencies are holding you back. To scale sustainably, you need metrics that reveal what’s happening beneath the surface. Key Metrics for Scalable Growth: 1️⃣ Net Revenue Retention (NRR): ↳ Tracks how much revenue you retain after accounting for churn. ↳ High NRR indicates sustainable growth fueled by existing customers. 2️⃣ Revenue Per Visitor (RPV): ↳ Measures the value of each visitor to your site or platform. ↳ Optimizing RPV ensures your traffic is working harder to generate revenue. 3️⃣ Average Order Value (AOV): ↳ Tracks the average amount spent per transaction. ↳ Increasing AOV boosts revenue without the need for additional traffic. The New Approach to Metrics: Instead of just tracking gross revenue or quarterly growth, focus on the metrics that show: ✅ How effectively you’re retaining and growing your customer base. ✅ Where bottlenecks are reducing the value of your traffic. ✅ How you can drive incremental gains that compound over time. Gross revenue might look impressive, but these metrics give you the clarity to make decisions that lead to sustainable, repeatable growth. Are you measuring the right metrics for scalable success?
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🔄 Struggling with churn or renewals? Let’s rethink the game! Join me and Jesse Dailey for a 🔥 webinar on the 2025 Renewal Playbook – your key to unlocking predictable growth. What’s in it for you? 🚀 Transform retention with connected GTM teams 📊 Build strategic renewal plans for predictable revenue 🤝 Engage economic buyers + defend accounts from competitors 🔗 Break silos + boost outcomes with connected data Renewals aren’t just CS—they’re a team sport. Done right, they drive massive growth. 👉 Register now: https://lnkd.in/gVXWcUKw
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You work so hard to acquire new customers—and it’s our goal to help you keep them. With enhanced Churn Analysis, you have the tools you need to ... 💰 Increase retention and renewal revenue 🔎 Identify win-back opportunities 📈 Easily view churn data and trends We've made it easier than ever for you to understand exactly why your current customers choose to stay or leave. We're also rolling out a new product called Deal Drawer (simplified participant and outreach management for your program) and an updated, more modern Survey experience. Learn more about each of these product updates here —> https://lnkd.in/gc6r-S9s
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You're missing out on potential customers if you don't do this... -> Make sure you're analyzing the necessary metrics weekly and aiming to change anything that isn't performing. -> Also make sure you're not analyzing useless metrics, take note of metrics that actually matter to your campaign. #marketingforsmallbusiness #constructiontips #digitalmarketingtips #constructionmanagement
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Would you launch a rocket without any prior tests? No. So why do businesses launch features/products without customer research? When times are tougher it’s management’s job to choose where to trim the fat. They’ll often go through a thought process like this: → We can’t cut back on the sales team, we can clearly see the ROI → We can’t cut back on the ad budget, we can clearly see the ROI → We can’t cut back on these R&D costs, we clearly saw the ROI in the past Why don’t we cut the customer/market research for this year and just use our previous data? CEO: 'Tremendous' CFO: 'Excellent' COO: 'Agreed' But this decision sets the business in motion down the wrong path. When you fail to keep up to date with your customer research: 🚫 You don’t know how customers will react to changes in the market. 🚫 Your marketing efforts don’t resonate in the same way. 🚫 You lose your edge on competitors who have invested. 🚫 You don’t understand pain points as well so churn increases. 🚫 You lose your positive WOM growth. 🚫 You miss future market opportunities to changing needs. 🚫 You make 100s of decisions on false pretences. The customer is always the most important stakeholder. Never lose sight of that.
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🚀 Best-in-class deal intelligence is here! Don’t just take our word for it—see how Ascend accelerated their deal cycles with Glyphic’s latest insights tool. Read the full story to discover how smarter deal insights removed customer blind spots and powered their pipeline: https://lnkd.in/e3eThdxd
How deal intelligence removed Ascend’s customer blindspots to accelerate their pipeline
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GTM strategy & RevOps consultant
9moBuyers aren't buying software like they used to even 2-3 years ago. Getting deeper into the pain points during discovery is key!