September 2013
Beginner
368 pages
5h 56m
English
book
The Agile Startup: Quick and Dirty Lessons Every Entrepreneur Should Know
by Jeff Scheinrock, Matt Richter-Sand
Content preview from The Agile Startup: Quick and Dirty Lessons Every Entrepreneur Should Know
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CLV >= 2 × CAC
Now that you know the acquisition cost of new customers you can compare that to the customer lifetime value (CLV). The CLV is the total amount of money that an average customer will pay you. For example, if you charge $30 per month for your service and the average customer is retained for 10 months, your CLV is $300. If CAC > CLV, you won’t be in business very long. If CAC = CLV, then you won’t make any money on these sales, and again, you won’t be in business very long. This strategy might make sense in the short term to build a customer base, but it’s not sustainable in the long run. The best situation, and a metric to work towards, is for the CLV to be at least double the CAC (CLV >= 2 × CAC). This cushion gives you the ammo you will need to expand your marketing efforts and sustainably build a solid customer base. Obviously, the more cushion the better. These metrics will be hard to know with any certainty before you launch, so make educated guesses and monitor your progress closely. The bottom line is that you don’t have a feasible business if it’s too expensive to reach your customer given your prices and margins.
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O’Reilly covers everything we've got, with content to help us build a world-class technology community, upgrade the capabilities and competencies of our teams, and improve overall team performance as well as their engagement.Julian F.
I wanted to learn C and C++, but it didn't click for me until I picked up an O'Reilly book. When I went on the O’Reilly platform, I was astonished to find all the books there, plus live events and sandboxes so you could play around with the technology.Addison B.
I’ve been on the O’Reilly platform for more than eight years. I use a couple of learning platforms, but I'm on O'Reilly more than anybody else. When you're there, you start learning. I'm never disappointed.Amir M.
I'm always learning. So when I got on to O'Reilly, I was like a kid in a candy store. There are playlists. There are answers. There's on-demand training. It's worth its weight in gold, in terms of what it allows me to do.