Webinar: Growth Optimization: Metrics & Frameworks by MasterClass Sr PM, Michael Berliner - Deepstash
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πŸ’Ž CAC/LTV ratio in combination with revenue

A lot of times,Β business health and growth can be at oddsΒ with each other because you can trade health for more growth. Looking at theΒ CAC/LTVΒ ratio in combination with Revenue is healthy because it considers both. It also gives you a common reference across the whole business.

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πŸ’Ž The throughput funnel

πŸ’Ž The throughput funnel

Β TheΒ throughput funnelΒ for a team is a function of:

  • Velocity: how many feature experiences are you putting out per engineer per week?Β Example at Airbnb: 1 test/engineer per week.
  • Success rate: for 100 experiments, how many are a statistically significant winner that you’re going to roll out?Β A good benchmark is a 20-30% success rate
  • Average Impact: if you have a 30% success rate, what’s the average impact over these?Β A more established company like FB might have a +1% average impact that drives a lot of revenue. More earlier stage companies should have a much higher average impact.Β 

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IDEAS CURATED BY

sylvainww

⛏️ πŸ’Ž Mining Best-in-class Mobile Growth Insights @ GrowthGems.co / Product Growth & Mobile Marketing @ Babbel Love learning and getting better at it. Stay savvy!

CURATOR'S NOTE

Gems on fundamentals about revenue growth and testing by an expert from MasterClass.

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