13. Customer Relationships Flashcards
1
Q
Useful metrics (as opposed to vanity metrics)
A
- what is the cost to acquire a single customer?
- how much revenue can be extracted from one customer?
if the cost to acquire is less than the lifetime value then you’re on a good path
2
Q
Ways you can create demand?
A
- Paid Demand - you pay (e.g., ads, trade show booth)
- Earned Demand - your reputation (e.g., brand reputation, positioning as expert)
3
Q
pirate metrics
A
Acquisition - how many people come to your front door? what does that cost?
Activation - how many people transform into a customer?
Retention - how long does someone remain your customer?
Revenue - how much money can you make?
Referral - how many customer referrals do you get?
