One of the presentations about growth hacking at our Growth Hacking Meetup Berlin. This time in the offices of Boston Consulting Group Digital Ventures!

1. Profit Hacking @ Growth Hacking Berlin Meetup
Dr. Arndt Schwaiger

2. Dr. Arndt Schwaiger www.arndt-schwaiger.de
Dr. Arndt Schwaiger
 Entrepreneur
 Advisor and Business Angel
 Coach and Mentor (>250 Projects)
 Cooperation with Investors
 Business Studies & Computer Sciences
 Transfer Research -> Business

3. Dr. Arndt Schwaiger www.arndt-schwaiger.de
Might a Business Model work? Might it be profitable?
Product / Service
Monetarisation
SEO FacebookSEM Affiliate PR Referral Sales Virality ...
CAC < CLV
GROWTH
B2C / B2B
Customer Acquisition Cost (CAC)
Customer Lifetime Value(CLV)
and is the market big enough?

4. Dr. Arndt Schwaiger www.arndt-schwaiger.de
Freemium Website
Example B2C: Freemium Website and Facebook Ads
CTR = 0,1%
SEO FacebookSEM Affiliate PR Referral Sales Virality ...
Cost per Click (CPC)
Click Through Rate (CTR)
CPC = 1 €
Website visit = 1 €
CR Visit to Reg (CR Reg)CR Reg = 5%
Cost per Reg = 20 €
CR Reg to Sub (CR Sub)CR Sub = 10%
Cost per Sub = 200 € ASD = 3,5 months
SF = 9 Euro per month
Average Sub Duration (ASD)
Subscription Fee (SF)
CAC = 200€
200€ !< 17,5€
CLV = 17,5€
Margin (M) M = 5 Euro per month

5. Dr. Arndt Schwaiger www.arndt-schwaiger.de
Objective: CLV has to be greater than CAC
€
Time
CAC > CLV CAC < CLV
CAC
CLV
CAC min
CLV max

6. Dr. Arndt Schwaiger www.arndt-schwaiger.de
own Product / Service
Monetarisation
Biz Model?
KPI?
Customer Acquisition
B2C / B2B ?
Channels?
KPI?
Identification and Specification of the most important KPI
Identification of marketing and
sales channels plus KPI
1.
Identification of most important
business model KPI
2.
Measurement, estimation or
investigation of KPI values
3.
Calculation or estimation of
CAC and CLV based on KPI values
4.

7. Dr. Arndt Schwaiger www.arndt-schwaiger.de
Identification of Status Quo
€
Time
CAC > CLV CAC < CLV
CAC
CLV
Scenario 1
CAC
CLV
Scenario 2
CAC
CLV
Scenario 3
CAC min
CLV max

8. Dr. Arndt Schwaiger www.arndt-schwaiger.de
Identification of Opportunities (Target Condition)
€
Time
CAC > CLV CAC < CLV
CAC min
CLV max
Check: CLV max > CAC min?
2.
Avoid „riding a dead horse“
with CAC min > CLV max !!!
3.
CAC min
CLV max
?
Estimate CAC min and
CLV max based on optimistic but
still realistic values!
1.

9. Dr. Arndt Schwaiger www.arndt-schwaiger.de
Management Dashboard: Focus on Target Condition
CAC
CLV
€
Time
200
17,5
KPI M1 M2 M3 M4 M5
CPC
CTR
CR Reg
CR Sub
ASD
1€
0,1%
5%
10%
3,5
1€
0,1%
10%
10%
3,5
0,5€
0,1%
10%
10%
3,5
0,5€
0,1%
10%
10%
4
0,5€
0,1%
10%
20%
5
KPI Measurement1.
Evaluation2.
Focus3.
Optimisation4.
Review Result5.
100
17,5
50
17,5
20
25
50
25
It is normal to have also
some steps backwards!
!
Problems and solutions
are not always obvious ->
A / B testing, surveys, ...
!
Some metrics are
not easy to measure
!
M6
0,5€
0,1%
10%
20%
5
Margin 5€ 5€ 5€ 5€ 5€ 8€
40
25

10. Dr. Arndt Schwaiger www.arndt-schwaiger.de
Contact
Dr. Arndt Schwaiger
Email: as@arndt-schwaiger.de
Web: www.arndt-schwaiger.de