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    Acquisition & Retention

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    Thoa Nguyen
    This document discusses metrics for customer acquisition and retention in business. It defines key metrics like customer acquisition cost (CAC) and customer lifetime value (CLTV). It also discusses segmenting customers into categories like new, standard, loyal, and churned customers and having different approaches for each segment. The document provides an example of acquisition and retention metrics for 6 months showing new and churned customers, average revenue per customer, monthly revenue, CAC, and churn loss. It also discusses measuring customer satisfaction through net promoter score (NPS) and using follow up questions to understand why customers promote or detract from the business.

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    Acquisition & Retention

    Uploaded by

    Thoa Nguyen
    11K views7 pages
    This document discusses metrics for customer acquisition and retention in business. It defines key metrics like customer acquisition cost (CAC) and customer lifetime value (CLTV). It also discusses segmenting customers into categories like new, standard, loyal, and churned customers and having different approaches for each segment. The document provides an example of acquisition and retention metrics for 6 months showing new and churned customers, average revenue per customer, monthly revenue, CAC, and churn loss. It also discusses measuring customer satisfaction through net promoter score (NPS) and using follow up questions to understand why customers promote or detract from the business.

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    Acquisition & Retention, growth metric for business

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    This document discusses metrics for customer acquisition and retention in business. It defines key metrics like customer acquisition cost (CAC) and customer lifetime value (CLTV). It also discusses segmenting customers into categories like new, standard, loyal, and churned customers and having different approaches for each segment. The document provides an example of acquisition and retention metrics for 6 months showing new and churned customers, average revenue per customer, monthly revenue, CAC, and churn loss. It also discusses measuring customer satisfaction through net promoter score (NPS) and using follow up questions to understand why customers promote or detract from the business.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    11K views7 pages

    Acquisition & Retention

    Uploaded by

    Thoa Nguyen
    This document discusses metrics for customer acquisition and retention in business. It defines key metrics like customer acquisition cost (CAC) and customer lifetime value (CLTV). It also discusses segmenting customers into categories like new, standard, loyal, and churned customers and having different approaches for each segment. The document provides an example of acquisition and retention metrics for 6 months showing new and churned customers, average revenue per customer, monthly revenue, CAC, and churn loss. It also discusses measuring customer satisfaction through net promoter score (NPS) and using follow up questions to understand why customers promote or detract from the business.

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    ACQUISITION & RETENTION

    GROWTH METRICS FOR BUSINESS


    WHAT IS ACQUISITION & RETENTION?

    Audience

    ACQUISITION RETENTION

    CAC: Customer Acquisition Cost CLTV: Customer Lifetime Value


    • Conversion funnel • Recurring revenue
    • Higher conversion rate • Up-sell / cross-sell
    • Lower cost of acquisition • Return users
    • Viral / WOM • Lower churn rate
    BETTER SEGMENTATION - BETTER APPROACH

    Not engage with ads, Not finished first Upgrade to a higher


    Undefined not on platform yet Inactive conversion -> Premium package -> stay
    audience -> click User complete first customer premium
    conversion

    Reached the Completed first Satisfied, refer new


    platform, no action New conversion -> keep Loyal customers -> keep
    Visitor
    yet -> start first customer converting customer satisfied
    action

    Not finished first Continue to convert Different / higher


    Undefined action -> complete Standard Referred expectation ->
    -> cross-sell / up-sell
    visitor first action customer customer manage expectation
    / referral
    & customer service

    Completed first No longer convert -> Adding the “HOW TO” question for
    action -> start Churned convert again each of these segmentations to
    User
    conversion customer figure out the appropriate approach
    ACQUISITION & RETENTION IN BUSINESS

    Average
    Monthly Total
    M New Churned revenue Monthly Gross Churn
    paying paying CAC Total CAC
    o. customer customer per revenue P&L loss
    customer customer
    customer

    1 3,300 520 210 3,610 $178 $642,580 $26 $13,520 $629,060 $37,380

    2 3,610 352 326 3,636 $156 $567,216 $24 $8,448 $558,768 $50,856

    3 3,636 1,215 856 3,995 $168 $671,160 $38 $46,170 $624,990 $143,808

    4 3,995 1,089 455 4,629 $149 $689,721 $36 $39,204 $650,517 $67,795

    5 4,629 898 328 5,199 $131 $681,069 $36 $32,328 $648,741 $42,968

    6 5,199 852 295 5,756 $123 $707,988 $34 $28,969 $679,019 $36,285

    ● Define clearly what does it mean as “churned customer” - how long would they be inactive before can be called “churned”.
    ● For SAS / B2B company, we should even have metrics like “potentially churn customer” to tracking customers who have not engage / using our
    service for awhile.
    HOW ABOUT REFERRAL / RECOMMENDATION?

    Question: How likely would you recommend


    our product / service to people you know?

    %PROMOTER - %DETRACTOR = NPS


    40% - 10% = 20% * 100
    NPS = 20

    Asking the right questions to find out the


    WHY?

    Detractors: what do you dislike? How can


    we help?

    Promoters: what do you like? How can we


    make it better?
    THANK YOU

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