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How To (Actually) Calculate CAC

Andrew Chen

[Andrew: Paid marketing remains an integral part of many products’ acquisition channels, and one of the key metrics is Cost of Customer Acquisition, which is a nuanced calculation with lots of gotchas. Key Question #1: How long between your marketing/sales touch points and when someone becomes a customer?

SaaS 111
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How to get your growth team to take off

Growth Hacker

You finally drafted what could eventually become your North Star Metric, suggested a few objectives , and are ready for takeoff. You are touching on marketing stuff, sales stuff, design stuff, and product stuff. Who the heck do you think you are? That's where the growth team flourishes.

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a16z Podcast: Why paid marketing sucks, Network effects, Viral Growth, and more

Andrew Chen

And we cover everything from the basics of growth and defining key metrics to know, to the nuances of paid vs organic marketing and the role of network effects and more. Sometimes aren’t these metrics ways to figure that out or is this all when you have product-market fit… like is there a pre- and a post- difference between these?

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The red flags and magic numbers that investors look for in your startup’s metrics – 80 slide deck included!

Andrew Chen

As I learned from the best in the industry – in particular from the Paypal mafia who had employed a metrics-driven viral approach to build some of their most iconic companies – I started to write about what we’d now call growth. Thinking about new user experience, engagement metrics, and other important concepts.

Metrics 111
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Leading and Lagging Indicators: What is the right way to measure performance?

Agile42

A classic example is driving sales to your ecommerce store. Conversion rate is a lagging indicator because it’s an outcome of what you had done to drive sales (e.g. Kissmetrics ) Outcome-based metrics, such as conversion rates, are easy to measure because the numbers are readily accessible. What measurements come to mind?

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Your Average CAC is Lying to You -- What to do Instead

Brian Balfour

I recently wrote about the most common mistakes with CAC (customer acquisition cost) that can derail growth efforts before you even get started because CAC is a metric that's foundational to growth strategy. Making CAC truly useful as an operating metric comes down to segmenting. Average marketing/sales cycle is less than 30 days.

Sales 71