So many time I’ve told my girlfriend that a particular startup is dead (or in most of the aspects, have no future). There is so many ways a startup could die. From having no money, to having too much money. From having too many specialist to too many generalist. During one of the coffee breaks I had with my interns I told him Captivoo is dead. We were on the topic of the future of the company…
So it has been a week of working full time on Captivoo, my startup. I never knew that so much could happen in a week, and the experience to be so different from what I’ve imagined. I’ve decided to capture random snippets of thoughts and work schedule on my this blog to hold myself accountable to the growth of Captivoo. There will be at least one blog post every week as I reflect on my past week and plan for the next.
If you are reading this, feel free to laugh and learn from the mistakes I will be making along the way as a founder.
While working on the reporting module of the CRM system, I’ve compiled a list of metrics that businesses should care about while improving their customer retention.
So why should you care about customer retention in the first place? Here’s why:
- It is 5-7 times more expensive to acquire a new customer than to keep an old one.
- Loyal customers are worth up to 10 times as much as their first purchase.
- Increasing customer retention by just 2% can translate into a 10% cost reduction.
- Some retailers indicate their top 15% of ‘loyal’ customers comprise 50% of their sales revenue.
Let’s take a look at our first metrics… The Customer Retention Rate of course!
Recently, one of my long term partner in business brought up an idea and wanted to collaborate with me to launch a new product. It is not the first time anyone wanted me to “be the technical co-founder”. More often than not, I will hear the person out and then dismiss the idea; either because the product simple does not solve a problem or the team lacks a little something that makes it work. This time, I love the product and the team. Here’s why.