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MORE FROM CALQULATE
Calqulate connects startups, investors, banks and lenders with financial data to speed up fundraising processes and lending decisions.
Learn more at calqulate.io
Reach out to Cameron at linkedin.com/in/cameronomurchu
GUEST BACKGROUND
Cameron is the Head of Growth at Calqulate, a financial analytics software startup. He has worked mainly in the finance vertical and his degree in science has given him a unique perspective on the business world, especially since A/B testing has become all the rage.
MAIN INSIGHT
New customers or new users do not mean growth all the time for the company. Growth also comes by stopping the acquisition of unprofitable customers.
KEY TAKEAWAYS
- Growth can be an increase in the price of your service or product
- The marketing and finance department meet at customer acquisition cost
- The marketing department burns money to make more money
- The ratio of customer acquisition cost (CAC) to customer lifetime value (LTV) is typically around 1:3 (For every dollar spent on CAC you get three dollars in return)
- Growth only comes when you can measure it
PRACTICAL STEPS
- Reduce rather than add – take a look at the things that you can take away before looking to grow your customers
- Identify if you want to grow or scale
- Growth – You’re going to put more money but you’ll get the same results
- Scale – Scaling is being efficient. You’re going to put in the same money but you’ll get better results.
- Start A/B testing the strategies
- Once you gather enough data, analyze which one is working by looking at the CAC to LTV ratio
TIPS FOR SUCCESS
- See if you can increase your product or service price
- Focus on sustainable growth
- As a marketer, it’s a great thing to be aware of the financial factors of the company so you can see if your efforts are bringing revenue to the company