per Eric Ries author of "The Lean Startup" Any
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Posted On: 01/12/2017 4:34:17 PM
per Eric Ries author of "The Lean Startup"
Any startup must ask the ask the question "where does growth come from?" In Chapter 10 he refers to the "Engine of Growth" as a tool for understanding growth
"New Customers come from the actions of past customers"
(fuel for the engine)
1- word of mouth - satisfied customer enthusiasm!
2- side effect of product... i.e. receiving $$ via PP, friend invite via FB, see a new car on the road
3- funded advertising - applying the margin of revenue
4- repeat purchase or subscription
Measurements (focus on increasing only one at a time)
1- "sticky engine of growth" or speed of growth is measured by the rate of new customer acquisition minus the "churn rate" or customers who fail to remain engaged with the companies product. (not just new customers!!!)
Essential to look at both how to acquire new customers AND retain current customers.
2- Viral growth, is not simply "word of mouth", its the "measurement of the number of new customers who will use the product based upon the number of new customers who have newly subscribed". Think of face book and how many friend invites for each newly subscribing person!!
3- Paid advertising... must use % of profit margin for this.
Which one is NTEK focused on? How well are they doing it?
Any startup must ask the ask the question "where does growth come from?" In Chapter 10 he refers to the "Engine of Growth" as a tool for understanding growth
"New Customers come from the actions of past customers"
(fuel for the engine)
1- word of mouth - satisfied customer enthusiasm!
2- side effect of product... i.e. receiving $$ via PP, friend invite via FB, see a new car on the road
3- funded advertising - applying the margin of revenue
4- repeat purchase or subscription
Measurements (focus on increasing only one at a time)
1- "sticky engine of growth" or speed of growth is measured by the rate of new customer acquisition minus the "churn rate" or customers who fail to remain engaged with the companies product. (not just new customers!!!)
Essential to look at both how to acquire new customers AND retain current customers.
2- Viral growth, is not simply "word of mouth", its the "measurement of the number of new customers who will use the product based upon the number of new customers who have newly subscribed". Think of face book and how many friend invites for each newly subscribing person!!
3- Paid advertising... must use % of profit margin for this.
Which one is NTEK focused on? How well are they doing it?
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