CAC vs CLV Archives - Shaking up finance https://www.shakingfinance.com/category/cac-clv/ Sat, 23 Jan 2021 09:22:44 +0000 en-US hourly 1 https://wordpress.org/?v=6.8.3 https://i0.wp.com/www.shakingfinance.com/wp-content/uploads/2018/07/cropped-shaker.jpg?fit=32%2C32&ssl=1 CAC vs CLV Archives - Shaking up finance https://www.shakingfinance.com/category/cac-clv/ 32 32 148687912 A startup Black & Scholes https://www.shakingfinance.com/a-startup-black-scholes/?utm_source=rss&utm_medium=rss&utm_campaign=a-startup-black-scholes Sat, 04 Jan 2020 20:27:15 +0000 https://www.shakingfinance.com/?p=1358 PART1: why should you manage Uncertainty? In the startup world, the financial forecast is definitely uncertain. As a consequence, some people see the forecast as a reflexion of the entrepreneurial dreams only. But I remember a question I asked to an experienced consultant: “What is the best advice in the B2B world?” He answered “benchmarking“. […]

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]]> 1358 Should you apply a Freemium business model? https://www.shakingfinance.com/should-you-apply-a-freemium-business-model/?utm_source=rss&utm_medium=rss&utm_campaign=should-you-apply-a-freemium-business-model Thu, 10 Oct 2019 16:06:57 +0000 https://www.shakingfinance.com/?p=1113 The answer to this question should be binary: yes or no? A positive answer would be translated mathematically by freemium feature costs lower than direct acquisition costs. STEP 1: Calculate the present value of your freemium feature costs Your freemium feature will generally imply several categories of costs. Initial development costs: as a lump sum, […]

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]]> 1113 Viral growth: what is the value of customers? https://www.shakingfinance.com/viral-growth-what-is-the-value-of-customers/?utm_source=rss&utm_medium=rss&utm_campaign=viral-growth-what-is-the-value-of-customers Thu, 15 Aug 2019 17:54:02 +0000 https://www.shakingfinance.com/?p=899 Viral growth is a complex topic. In this article, we will introduce some financial formulas which will help you to value word of mouth in business. You should start with the most simple model: a customer recommending yearly a fixed number of new customers. Then, we can value Customer Acquisition Costs (CAC) savings related to […]

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]]> 899 Upsell strategy and CLV https://www.shakingfinance.com/upsell-strategy-and-clv/?utm_source=rss&utm_medium=rss&utm_campaign=upsell-strategy-and-clv Sat, 13 Jul 2019 22:14:54 +0000 https://www.shakingfinance.com/?p=905 You are already growing your number of customers as fast as you can. So, how could you create more value for your company? The answer: sell more to your existing customers! Recurring purchase businesses are prone to growing ARPU (Average Revenue Per User) or transactions. Why? Because we want to test your product or service. […]

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]]> 905 How to calculate the Customer Lifetime Value of an Asset Management client? https://www.shakingfinance.com/calculate-the-customer-lifetime-value-in-asset-management/?utm_source=rss&utm_medium=rss&utm_campaign=calculate-the-customer-lifetime-value-in-asset-management Mon, 04 Mar 2019 17:21:19 +0000 https://www.shakingfinance.com/?p=551 Some Fintech startups are betting on the growing Assets Under Management (AUM) of millennials. Among them, you will find robo-advisors, micro-saving applications and trading platforms for self-directed investors. This idea is obviously seductive. However, we could ask ourselves what is the real value of a millennial with an upside potential? As the Customer Acquisition Cost […]

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