Finding a sure shot model to deliver on revenue targets is a holy grail for sales. Ethan Teng is heading growth at Recurly and has delivered some spectacular success. He discussed his co-horted growth model to measure the end to end customer lifecycle – “ from acquisition, activation, engagement, retention, monetisation, and resurrection – and identify the biggest opportunities and points of leverage” in the GrowthTL;DR podcast.
He then wrote this in-depth manual for anyone to follow elaborating his 7 step formula.
You understandably start by gathering some data like visitors to the website, visitors to the trial signup page – the progression leading to customers won (Step 1). You should also be able to track your ARPU, CAC, LTV and Time to close and time to payback (Step 2).
Next decide on your revenue mix (Step 4). The spreadsheet that he shares will help you identify the biggest revenue lever/s. It will also enable you to formulate a roadmap (Step 5). You need to keep updating your model as you go along (Step 7).
It is an involved read. As you dive in, the best is to plug in the data as you go along to get the best out of the article.
Where I learnt this #431
7 steps to hit your 2020 revenue goal