Calculating Metrics that Matter for Sustainable Growth

Calculating w/money.Do you know how to scale your business sustainably? Are you tracking metrics like CAC (Customer Acquisition Cost) and CLV (Customer Lifetime Value)?

If you’ve never heard of these metrics, or are curious how you might improve your ability to evaluate a path towards sustainable growth, take the time to check out this piece in First Round titled “Growth at All Costs is Perilous — This is How to Scale Sales Sustainably.” While the piece is targeted primarily towards tech startups, the information here can help you understand how to develop a successful, profitable team.

Included with this article is a “simple metrics calculator” which allows you to “plug in your own numbers to calculate CAC and CLV, as well as confirm that the ratio and payback period are both on track.”

The piece also looks at sophisticated strategies for evaluating sales teams, as well as how to “map out caring” for customers after the sale. This is a big problem for a lot of agents who are rabid for the next new client without taking the time to nurture their existing book of business.

See what you can learn from cutting-edge mindsets in Silicon Valley:

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