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Business types
The document discusses different business types and stages of growth. It outlines 5 common stages of growth: 1) Empathy, 2) Stickiness, 3) Virality, 4) Revenue, and 5) Scale. It also introduces some key metrics to measure business performance, including customer retention rates, churn rates, customer acquisition costs, revenue per customer, and customer lifetime value. Overall, the document provides an overview of different business models and a framework for understanding the typical stages of a company's growth cycle.
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Business types
- 1. Business Types &Stages IT industrial
- 2. Different types E-commerce 2 sideMarket Software as a Service (SaaS) Mobile App (mobile free app) Media User Generated Content (UGC)
- 3. Stages 1) Empathy • Problemvalidation: getting inside your market’s head to discover real needs you can solve. These tend to be qualitative discussions and open questions. • Solution validation: This happens in both qualitative and quantitative approaches, and in some cases curated MVPs or regional tests.
- 4. Stages 2) Stickiness • Achievinga minimum viable product that engages customers in a meaningful, valuable way. • Get more subscribers, more users, more touch points, more repeatable customers, more …
- 5. Stages 3) Virality • Growingadoption through inherent, artificial, and word- of-mouth virality. • Main marketing activities start here: social networks, events, public relations and …
- 6. Stages 4) Revenue • Convincingusers to pay with optimal pricing, then pouring some of that money back into customer acquisition. • Break-event point can be here. • You can stay here and enjoy some money. • Your business can be stable.
- 7. Stages 5) Scale • Growingthe organization through customer acquisition, fight with big competitors, and participating in a new market ecosystem. • Growing verticals and horizontal, related products; bundling third-party offers (e.g., car rental in a vacation rental site, shipping in a craft market-place , etc.)
- 8. Introduce some metrics 1.Customers that buy more than 1x in 90 days 2. Churn Rate 3. Customer Acquisition Cost (CAC) 4. Revenue Per Customer Per Month 5. Customer Lifetime Value (CLV)
- 9. 1. Customers thatbuy more than 1x in 90 days customers that buy more than 1x in 90 days you are in this mode your customer will buy from you Focus on 1 - 15 % acquisition once low acquisition cost, high checkout 15 - 30 % hybrid 2 - 2.5 per year increasing return rate, market share more that 30 % loyalty more than 2.5 per year loyalty, selection, inventory size
- 10. 2. Churn Rate Yourchurn rate is the amount of customers or subscribers who cut ties with your service or company during a given time period. These customers have “churned.” ! examples: ! ! Churn rate can calculate monthly, seasonly or annually. ! 2-5% monthly churn rate is normal. that means: ! a company loses a quarter of its customers every year. ! churn-rate.com Media E-Commerce Social Network Unsubscribe Rate % of lost customers % of deactivate users
- 11. 3. Customer AcquisitionCost the all costs divide to number of customers during a given time period 4. Revenue Per Customer the all revenue divide to number of customers during a given time period 5. Customer Lifetime Value (CLV) (100 / churn rate) * revenue per customer if CAC under 1/3 CLV thats pretty good!
- 12. Conclusion Business Type & Stage E-commerce 2side Marketplace SaaS MobileApp Media User Generated Content Empathy Stickiness Virality Reveneu Scale