10 count nov17-2012-presentation4

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10 count nov17-2012-presentation4

  1. 1. LTVVS CPA Defining your Customer
  2. 2. Let’s say you have an idea for transcriptionservice for Masters/PhD/University Researchersas your Primary Customer. • Market Size 8MM • On average each researcher will do 10hrs of research that requires transcription/year = 80MM hrs of transcription in that market in North America. • You charge 15$/hr of audio. • Average Length of Study 4 years = 10hrs/yr x 15$/hr x 4yrs = $600/customer (average) Margin 50% = $300 • LTV/Education Customer = $300. (Do they add to network effects? Referrals?) Latent value can be assumed but not included here. The World Exchange Plaza Toll Free: 1 866 964 6931 Providing enterprise level order fulfilment, real-time 1150-45 O’Connor Street Facsimile: 1 866 391 5954 provisioning and life-cycle management with custom Ottawa, Ontario, K1P 1A4 Email: info@10Count.ca software solutions. Canada Web: www.10Count.ca Rob: Rob@10count.ca | Matt: Matt@10count.ca
  3. 3. CPA: Cost Per Acquisition • Lets say we’re using the FB example above. The cost per click is $1.00. • That means I get 300 clicks before I’m loosing money if we look at LTV alone • Can I pay for advertising (acquisition method) and still get a return ? • If your Cost Per Acquisition is lower than Your LTV step on the Gas. You have yourself a money making business. The World Exchange Plaza Toll Free: 1 866 964 6931 Providing enterprise level order fulfilment, real-time 1150-45 O’Connor Street Facsimile: 1 866 391 5954 provisioning and life-cycle management with custom Ottawa, Ontario, K1P 1A4 Email: info@10Count.ca software solutions. Canada Web: www.10Count.ca Rob: Rob@10count.ca | Matt: Matt@10count.ca
  4. 4. CPA Continued:This is where smart marketing/product development comes in:Key Free CPA mechanisms: • Organic Search • Word of Mouth • Virality and Network Effects The World Exchange Plaza Toll Free: 1 866 964 6931 Providing enterprise level order fulfilment, real-time 1150-45 O’Connor Street Facsimile: 1 866 391 5954 provisioning and life-cycle management with custom Ottawa, Ontario, K1P 1A4 Email: info@10Count.ca software solutions. Canada Web: www.10Count.ca Rob: Rob@10count.ca | Matt: Matt@10count.ca
  5. 5. LTV vs CPA is our Key MetricOnce we have an idea: • We’ve validated people are looking for it or are interested • We’ve defined some acquisition methods and have a handle on LTV • Lets RockBuild! See: Bootstrapping a Business The World Exchange Plaza Toll Free: 1 866 964 6931 Providing enterprise level order fulfilment, real-time 1150-45 O’Connor Street Facsimile: 1 866 391 5954 provisioning and life-cycle management with custom Ottawa, Ontario, K1P 1A4 Email: info@10Count.ca software solutions. Canada Web: www.10Count.ca Rob: Rob@10count.ca | Matt: Matt@10count.ca

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