Irrespective of the business model you pursue, you have two very important high growth levers: efficient customer acquisition and strong customer retention.
Conducting a thorough cohort analysis process can help you achieve both and ignite explosive sustainable growth. In this article, I explain why and how.
With a company-wide focus on customer success you can achieve your growth and exit valuation goals. If you make your customers incredibly successful, they will churn less, buy more and spread the word. Referrals will further reduce customer acquisition costs and CAC payback period. You recoup your investments quicker and can reinvest the money in order to further fuel your growth engine. A virtuous cycle!
As Marc Andreesen once put it: "The only thing that matters is product/market fit". Fuelling the growth engine and entering the high growth phase does not make sense if a company has not yet found product/market fit.
But as product/market fit is not binary the question arises how to measure product/market fit?
Founders may gather and analyse quantitative and qualitative information and need to use their intuition in order to assess whether they can start scaling heavily.