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