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Business Types & Stages
IT industrial
Different types
E-commerce
2 side Market
Software as a Service (SaaS)
Mobile App (mobile free app)
Media
User Generated Content (UGC)
Stages
1) Empathy
• Problem validation:
getting inside your market’s head
to discover real needs you can
solve. These tend to be qualitative
discussions and open questions.
• Solution validation:
This happens in both qualitative
and quantitative approaches, and
in some cases curated MVPs or
regional tests.
Stages
2) Stickiness
• Achieving a minimum viable
product that engages customers in
a meaningful, valuable way.
• Get more subscribers, more users,
more touch points, more repeatable
customers, more …
Stages
3) Virality
• Growing adoption through
inherent, artificial, and word-
of-mouth virality.
• Main marketing activities start
here: social networks, events,
public relations and …
Stages
4) Revenue
• Convincing users to pay with
optimal pricing, then pouring
some of that money back into
customer acquisition.
• Break-event point can be here.
• You can stay here and enjoy
some money.
• Your business can be stable.
Stages
5) Scale
• Growing the organization
through customer acquisition,
fight with big competitors,
and participating in a new
market ecosystem.
• Growing verticals and
horizontal, related products;
bundling third-party offers
(e.g., car rental in a vacation
rental site, shipping in a craft
market-place , etc.)
Introduce some metrics
1. Customers that buy more than 1x in 90 days
2. Churn Rate
3. Customer Acquisition Cost (CAC)
4. Revenue Per Customer Per Month
5. Customer Lifetime Value (CLV)
1. Customers that buy more than 1x in 90 days
customers that buy
more than 1x in 90
days
you are in this
mode
your customer
will buy from you
Focus on
1 - 15 % acquisition once
low acquisition
cost, high checkout
15 - 30 % hybrid
2 - 2.5
per year
increasing return
rate, market share
more that 30 % loyalty
more than
2.5
per year
loyalty, selection,
inventory size
2. Churn Rate
Your churn rate is the amount of customers or subscribers who
cut ties with your service or company during a given time
period. These customers have “churned.”
!
examples:
!
!
Churn rate can calculate monthly, seasonly or annually.
!
2-5% monthly churn rate is normal. that means:
!
a company loses a quarter of its customers every year.
!
churn-rate.com
Media E-Commerce Social Network
Unsubscribe Rate % of lost customers % of deactivate users
3. Customer Acquisition Cost
the all costs divide to number of customers during a given time period
4. Revenue Per Customer
the all revenue divide to number of customers during a given time period
5. Customer Lifetime Value (CLV)
(100 / churn rate) * revenue per customer
if CAC under 1/3 CLV thats pretty good!
Conclusion
Business
Type
& Stage
E-commerce
2side
Marketplace
SaaS Mobile App Media
User
Generated
Content
Empathy
Stickiness
Virality
Reveneu
Scale

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Business Types, Stages & Metrics

  • 1. Business Types & Stages IT industrial
  • 2. Different types E-commerce 2 side Market Software as a Service (SaaS) Mobile App (mobile free app) Media User Generated Content (UGC)
  • 3. Stages 1) Empathy • Problem validation: getting inside your market’s head to discover real needs you can solve. These tend to be qualitative discussions and open questions. • Solution validation: This happens in both qualitative and quantitative approaches, and in some cases curated MVPs or regional tests.
  • 4. Stages 2) Stickiness • Achieving a minimum viable product that engages customers in a meaningful, valuable way. • Get more subscribers, more users, more touch points, more repeatable customers, more …
  • 5. Stages 3) Virality • Growing adoption through inherent, artificial, and word- of-mouth virality. • Main marketing activities start here: social networks, events, public relations and …
  • 6. Stages 4) Revenue • Convincing users to pay with optimal pricing, then pouring some of that money back into customer acquisition. • Break-event point can be here. • You can stay here and enjoy some money. • Your business can be stable.
  • 7. Stages 5) Scale • Growing the organization through customer acquisition, fight with big competitors, and participating in a new market ecosystem. • Growing verticals and horizontal, related products; bundling third-party offers (e.g., car rental in a vacation rental site, shipping in a craft market-place , etc.)
  • 8. Introduce some metrics 1. Customers that buy more than 1x in 90 days 2. Churn Rate 3. Customer Acquisition Cost (CAC) 4. Revenue Per Customer Per Month 5. Customer Lifetime Value (CLV)
  • 9. 1. Customers that buy more than 1x in 90 days customers that buy more than 1x in 90 days you are in this mode your customer will buy from you Focus on 1 - 15 % acquisition once low acquisition cost, high checkout 15 - 30 % hybrid 2 - 2.5 per year increasing return rate, market share more that 30 % loyalty more than 2.5 per year loyalty, selection, inventory size
  • 10. 2. Churn Rate Your churn rate is the amount of customers or subscribers who cut ties with your service or company during a given time period. These customers have “churned.” ! examples: ! ! Churn rate can calculate monthly, seasonly or annually. ! 2-5% monthly churn rate is normal. that means: ! a company loses a quarter of its customers every year. ! churn-rate.com Media E-Commerce Social Network Unsubscribe Rate % of lost customers % of deactivate users
  • 11. 3. Customer Acquisition Cost the all costs divide to number of customers during a given time period 4. Revenue Per Customer the all revenue divide to number of customers during a given time period 5. Customer Lifetime Value (CLV) (100 / churn rate) * revenue per customer if CAC under 1/3 CLV thats pretty good!
  • 12. Conclusion Business Type & Stage E-commerce 2side Marketplace SaaS Mobile App Media User Generated Content Empathy Stickiness Virality Reveneu Scale