How You Get To $5M In Revenue in Under Three Years
Published on Nov 20, 2015
How we drove our online retailer into the multiple millions in revenue in under three years using kick-butt CRM
MORE DECKS TO EXPLORE
PRESENTATION OUTLINE
The Big Idea: Highest ROI
- Identifying best customers
- Creating more of them
Once you have achieved PMF, then the highest ROI activity
Photo by Victor Bonomi
Why?
Dollars do double duty
Every dollar you spend on retaining a 'best' customer not only increases their LTV, it increases the LTV of all future customers you acquire
Photo by marc falardeau
Customers: Not Created Equal
As you may or may not know, not all customers are created equal. Some are low LTV
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How we did it
- RFM
- Ranked customers
- Top quintile: 50%+ of revenue
- SAAS? LTV
STEP TWO
Create more of them
Once you've identified your best customers, you move on to Step Two -- creating more of them.
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Retention Example
- Best Customers order every 60 days
- @ 70 days > 10%
- @ 90 days > 15%
- @ 110 days > 20%
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Results
- 400+% ROMI over three months
- "Tripwire" marketing: automate!
- SAAS? Last login red flag
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More Examples
- Retention > latency tripwires
- Development > find your bridges
- Acquisition > account for full LTV
The best way to approach...
New Mindset
- Job: "Right Solution" > "Right Customers"
- Focus: Acquisition > Churn
- Revenue > Cash Flow
- VC > Bootstrapper or PE
What I'm basically talking about here is a new mindset. After achieving PMF, your job has moved from finding the Right Solution to finding the Right Customers.
And this last point is why I believe this customer-centric approach is particularly relevant to the microconf audience.
And this last point is why I believe this customer-centric approach is particularly relevant to the microconf audience.
Photo by michael hilton
