How much profit are you going to make from your next customer?
If you struggled to answer that, then you’re not looking at the right things when it comes to your company’s data.
From early-stage startups to huge corporations, the word on everyone’s lips is ‘data’. There is no shortage of information on how important data is, what you should be tracking, and what your data is likely telling you.
And yet so many of us are still doing it so wrong.
If you don’t know how much profit you’re going to make from your next customer, then you don’t have a grasp of your unit economics.
Unit economics looks at the revenues and costs in your business on a per unit basis. The ‘unit’ in question will vary per business model, but it is typically one customer.
If one customer costs you more to acquire than you’ll ever make back from them then your business will not be profitable at scale. These issues are particularly salient with subscription businesses where the cash flow takes a hit upfront after a customer subscribes but you only make up that acquisition cost after a number of months…if you ever get to that breakeven point.
So given that these measures are clearly so important what is it about the vast range of tools out there that is leading us astray?
With the current tools out there, if you don’t spend any time setting them up and customising them, then you’ll get a lot of data displayed that was easy to access but isn’t the most useful, particularly when it comes to making strategic decisions. The other option is to spend developer time on integration and further time on producing custom queries and analysis — this is costly.
You need to take step back. You need a way of understanding the unit economics across your business without it being a sap on resources. You need a way of displaying this information in an accessible way with very little technical integration required. You need a way of showing the statistical significance of your data and getting strategic insights at a high-level without needing to hire a quant. You need a way that CEOs, employees, and investors can begin to speak the same language and stand behind common goals that prioritise the long-term health and sustainability of the company.
We think that getting this right is so important, which is why we’re focused on building products that will help companies to get to grips with their unit economics and make the right strategic decisions.
Our first product is Vitals — a platform that will enable you to get a snapshot of the long-term health of your company at any point in time. We’ll show you what data points you need to care about. The output will be actionable — you’ll be able to set goals and empower your team to reach them.
Get in touch with us today to find out how you can get a Vitals dashboard for your company.
We look forward to hearing from you.