Excerpt from "Silicon Valley real growth hacker notes"
With the development of cloud services, SaaS, advertising and distribution platform and other services, although the development of a new product is getting lower and lower cost, but the amount of financing start-up companies has hit record highs.
Specific cause
Wang growth, growth is strong in order to win in the fierce competition, the company must increase the amount of financing to accelerate growth.
Winning reference criterion
Users get the eternal formula: LTV> CAC
DEFINITIONS
Users throughout the life cycle as the value (Life Time Value, LTV) business creation requires more than obtaining this cost (Customer Acquisition Cost, CAC) new users need, otherwise, the more pull to the user, the more the company lose money .
With the cooling of the capital market, more and more investors and entrepreneurs finally began to emphasize back to basics, re-examine the economics unit determined by LTV and CAC.
- CAC = (marketing + sales total cost Total cost) / the same period the number of new users
- LTV is calculated thinking: ① users will use your product how many months? ② the average monthly user from your body much money.
How to choose a new acquisition channel?
- Understanding of their product features, such as object-oriented, product form, industry, profit model, the unit economics
- Understanding of user groups
- Lists the possible alternative channels
- The initial access to screening
- Operations, optimize and expand user acquisition channels
