If company B should end with the same result as Company A after 12 months they should acquire 154 new subscribers each month. More than 50% more than company A.
I am not going to give you a finite answer to the question I initiated this post with – however I encourage you to reflect what you think is easier and requires less resources. A socalled “low hanging fruit”
Acquistion of 50% more subscribers every month OR retaining 10% (in full numbers) more subscribers every month.
My recommendation is usually that if you focus on keeping your new acquired customers happy you will end up with a more profitable business than if you focus solely on acquiring new customers every month and thus tend to neglect existing customers.
Even small variations will give you a big difference after 12 months.
Use this spreadsheet to make your own test and help you decide where you should focus your efforts.
Jakob is former Head of Marketing at Upodi. Jacob knows a lot about a lot of things. Including (not excluding) fundraising, subscription based business models, IPA's and IPO's plantbased foods and barefoot running.
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