"The purpose of a business is to create and keep a customer" - @ Peter Drucker - and I can't agree more! Customer retention is an integral driver of 'Customer Life Time Value' (think about this as total revenue earned per customer before she defects from the service multiplied by the 'margin' in the business) which … Continue reading ‘Retention’ – The Forgotten (Super) Growth Driver !!
Over the last 6 years, I have had the privilege to work along some of the best entrepreneurial minds in the country - this allowed me to understand what each one of them was doing differently or not so differently. The following post is a summary of my findings on what differentiates successful internet companies … Continue reading 3 Cs of Profitable Growth – ‘Key Metrics to ‘kill for’ or else get ‘killed’’
We as venture investors love highly scalable business models! - "But what does that mean in simple terms?" - has often been the question thrown right back at me. On the other hand, I continue to interact with entrepreneurs who choose a highly scalable business model over a relatively lesser scalable business model even though … Continue reading Business Model Scalability – Understanding & applying the concept to adopt the right business model
In my first post about ‘Importance of the Supply side’, I talked about the ‘Chicken and Egg’ problem (Found here - Winning the Marketplace - Part I 'Importance of the Supply Side') and how quality supply on-boarding, retaining and incentivizing is key to building a strong value proposition for the demand side. Retaining and scaling … Continue reading Winning the Online Marketplace – Part V ‘Revisiting Importance of the Supply Side’
The one thing I observe is common across most successful entrepreneurs is that that they doggedly watch their business metrics. And they do this to identify key challenges, seek help from investors / mentors quickly without mincing words. They then employ some of their best brains to address the right problems to come up with strategic initiatives … Continue reading Winning the Online Marketplace – Part III ‘Online Marketplace Business Metrics – The What, When and Why’
As you think about developing the core value proposition for the consumer ('demand' side) of your marketplace business (be it product or services), there are three essential aspects that the platform needs to solve for – (1) Discovery (2) Decision making (3) Delivery aka the three 'Ds'. Before we get into the specifics of how to solve for each of them, it’s important that to define these … Continue reading Winning the Online Marketplace – Part II ‘Developing a Value Proposition for the Demand Side’
Over the last 4 years as a venture investor, some of the most exciting moments include interactions with entrepreneurs hustling to launch & scale disruptive marketplace businesses. Each of these meetings have fundamentally revolved around two important questions for the entrepreneur - (1) The ‘Chicken Or Egg’ problem, which is essentially asking the question – … Continue reading Winning the Online Marketplace – Part I ‘Importance of the Supply Side’