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!
While there seems to be a common understanding on how to calculate most KPIs, I see some inconsistent approaches as to calculating unit economics for platform businesses. This heterogeneity leads to confusion and unnecessary time spent discussing what the correct approach is. With this article, my co-author Richard Meyer-Forsting and I want to share some of our insights we gathered over the years and explain how we believe unit economics for a platform business need to be calculated.