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← Defining Customer Terms App Monetization Udacity

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Showing Revision 2 created 05/25/2016 by Udacity Robot.

  1. We've heard a bit about customers
    in the last few segments.
  2. Not surprisingly, customers will
    play a huge role in the success or
  3. failure of your business.
  4. Are they giving you money or
    aren't they?
  5. There are a few metrics you should
    keep in mind in terms of customers,
  6. loyalty, retention,
    and acquisition costs.
  7. Customer loyalty measures
    the performance of your customers,
  8. how often they purchase,
    how often they visit a site,
  9. basically have they made
    your product a habit.
  10. Customer retention then
    measures the number of users
  11. retained in a given time period.
  12. And this is particularly important for
    subscription-based models,
  13. which we'll learn more about later.
  14. You can calculate customer retention
    by taking the total number of customers
  15. at the end of the given period and
    subtracting the total number of new
  16. customers that you got
    during that period.
  17. And you divide that all by the customers
    that you had at the start of the period.
  18. Multiply that by 100 and
    you'll get a percentage.
  19. Customer acquisition cost,
    as the name implies,
  20. is how much you spend
    to acquire new users.
  21. You can calculate customer acquisition
    cost by taking the total acquisition
  22. expenses and dividing by the total
    number of new users in a given period.
  23. Now, what constitutes good for each
    of these metrics is really up to you.
  24. Obviously, a 100% customer retention
    percentage would be ideal,
  25. but it's also not very likely.
  26. You'll be referring to these
    metrics a lot later on,
  27. once you've implemented a monetization
    method and are looking to iterate on it.
  28. So take a moment to think about
    what success might look like
  29. for your product.
  30. You'll be referring to these
    metrics a lot later on,
  31. once you've implemented a monetization
    number and are looking to iterate on it.
  32. So take a moment to think about
    what success might look like for
  33. your product, what metrics might you
    use to measure customer loyalty,
  34. what percentage of customers do
    you reasonably hope to retain.
  35. Use this box to record your response.