| A | B | |
|---|---|---|
1 | Team Name: | Our Amazing Team |
2 | Timeframe: | Q1 2020 |
3 | ||
4 | Introduction | |
5 | This workbook is meant to help you take your PMR findings and translate them into hypotheses that you can provide using digital advertising. At the end you should come out with baseline figures for cost of customer acquisition, lifetime value, LTV:COCA ratio, and time to cost of customer acquisition recovery. These figures won't be rock solid (digital advertising is only one customer acquisition channel and you may incur other costs!) but will serve as a baseline for you to work from. Once further refined, these figures provide insight into the viability of your business, profitability potential, and how long it will take before the business reaches sustainability. | |
6 | ||
7 | Prerequisities | |
8 | Before starting this process you should have: - Complete qualitative and quantitative PMR - Proposed value propositions for your target audience - An understanding of your unit economics - Reserached customer lifetimes for competitors and/or alternatives | |
9 | ||
10 | Notes | |
11 | - Look for comments! If you're confused, there might be a comment on the cell to explain. - Check out the examples! Each worksheet has a corresponding example for a digital health startup. - Every cell that has a pure white background is for you to enter information. Other cells are caluclated. | |
12 | ||
13 | Step | Description |
14 | Step 1 | Define your goals for running digital advertising campaigns. These goals should be based around the learnings you're willing to pay for! |
15 | Step 2 | Design your tests that will contribute to your overall goals. These tests will be proven or disproven with digital advertising. |
16 | Run your ad tests! Iterate! Optimize! (Not included in this template - you need to do the work!) | |
17 | Step 4 | Synthesize the findings from your ad tests and relate them back to the hypotheses that you defined in Step 2. |
18 | Step 4 | Calculate your cost of customer acquisition based on the data collected in Step 4. |
19 | Step 5 | Calculate your customer lifetime value based on the projected profits and customer lifetime value hypotheses you have. |
20 | Step 6 | Calculate LTV:COCA ratio and recovery time from previous steps to determine business viability. |
21 | ||
22 | Questions? | |
23 | Contact me - I'd be happy to help. pcheek@mit.edu | |