Lots of startups that are funded make these mistakes.
They fail to account for cost-of-acquisition vs life time customer value because the VC money keeps the snowball rolling forward fast enough that they think they're doing it by themselves. As soon as you shut off the marketing the whole thing crashes straight into the ground because of churn.
Modeling churn is a very important activity and modeling it correctly allows you to decide whether your ugly duckling is really a swan or actually just an ugly duckling.
What I do come across is that such insights are not welcome and that they make you an 'unbeliever'.
Hmmm, having worked for and run many non-tech based small businesses I guess I took it for granted that repeat customers and customer retention is important. Maybe the difference in insights is due to seeing the customers face to face.
Funny little culture this 'tech startup' culture...
They fail to account for cost-of-acquisition vs life time customer value because the VC money keeps the snowball rolling forward fast enough that they think they're doing it by themselves. As soon as you shut off the marketing the whole thing crashes straight into the ground because of churn.
Modeling churn is a very important activity and modeling it correctly allows you to decide whether your ugly duckling is really a swan or actually just an ugly duckling.
What I do come across is that such insights are not welcome and that they make you an 'unbeliever'.