1. Target Audience
This guide is intended for:
Business managers who want to increase their company's EC sales
Product managers who want to increase their SaaS MRR/ARR
Marketing managers who want to increase the number of users of their social apps
Managers interested in the growth of web/mobile products
2. The changing digital marketing environment
Skyrocketing customer acquisition costs
From 2013 to 2022, customer acquisition costs have increased nearly threefold.
2013: Approx. $9
2022: Approx. $29
This sharp increase reflects increased competition for customers online.
Emerging trends
Simple digital advertising and content marketing sri lanka b2b leads is no longer enough for growth. A more sophisticated strategy is required.
3. Examples of fast-growing companies
B2C success stories
GOAT, an e-commerce company founded in 2015
2021 results: Transaction volume: 221.5 billion yen Market capitalization: 409.7 billion yen
B2B success stories
hopin, a SaaS company founded in 2019
Just two years after its establishment: Market capitalization in 2021: 800 billion yen
These companies are adopting strategies that go beyond traditional growth models.
4. Definition of Growth
Growth means executing four key components within a coherent overall strategy:
product
Customer Acquisition
Retention
Monetization
Growth Characteristics
Manage the entire customer journey
Product design incorporating a viral growth loop
Data-Driven Decision-Making
5. Growth Pitfalls
Many businesses fall into the following traps:
Overconfidence in tools: Even if you introduce MA and CX tools, their effectiveness will be limited without a strategy.
Separating product and distribution strategies: they should be closely related
Lack of data infrastructure: Without an appropriate data collection and analysis system, it is difficult to make targeted improvements.
Customer acquisition without regard for retention rates: Without customer retention, sustainable growth is difficult
Lack of commitment from management: Cross-departmental cooperation and sufficient resource allocation are necessary
6. The Importance of Product-Market Fit
Product-market fit is achieved when two conditions are met:
Achieving high retention rates
The number of new customers acquired each month is steadily increasing
Achieving this state is key to sustained sales growth.
7. Retention Rates Matter
The significance of high retention rates
Accelerating the customer acquisition loop
Increase in user LTV (Life Time Value)
Accelerating new customer acquisition through virality
Retention Rate Benchmarks by Industry
8. Analysis of retention curves
Retention curve shape
Sharp decrease: BAD
Generally flat: OK
Flat: GOOD
Smile Curve: GREAT
Actions to take for each retention curve
Eight segments to analyze
Persona
Acquisition route
Product Categories
function
How often the core action is performed
Number of core actions taken in the initial stage
device
region
Analyzing the retention curves for each of these segments can provide important insights.
9. Effective Customer Acquisition Strategies
Evaluating the number of new customers acquired
Decreasing status: BAD
Flat: OK
Linear increase: GOOD
Nonlinear increase: GREAT
Actions to be taken based on number of new customers acquired
Build a cohesive acquisition strategy, rather than thinking about products and acquisition channels, or acquisition channels and business models separately.
The importance of product-channel fit
It's important to adapt your product to the channel your customers are on. Since you can't control the channel, you have to adapt your product.
Channel Model Fit
Choosing the right channel for your business model is also important:
Low ARPU/Low CAC: B2C apps, viral marketing, SEO
High ARPU/High CAC: Enterprise, face-to-face sales
10. Roadmap for building a growth state
Establishment of analysis system Development of data analysis infrastructure
Improving retention and acquisition Improving products Optimizing the activation process Improving customer acquisition strategies
Improved monetization Shorter payback period
It is important to follow each step in order and continue to improve by returning to previous steps as necessary.
summary
A data-driven approach and a cohesive strategy are essential for the growth of ecommerce, SaaS, and social apps. Achieving high retention rates, choosing effective customer acquisition channels, and achieving product-market fit are the paths to sustained success.
By applying the principles in this guide and developing a strategy tailored to your business, you can thrive in a competitive digital marketplace.
Homula supports everything from building growth strategies to execution. If you are interested, please contact us here.
In the next article we will explain the activation process.
