See the Full Picture
In order to get to where you want to be, it’s important to know where you are. We like to use this simple grid based on various combinations of volume and efficiency that might help describe your current state.
As usual, the question becomes: how can you move up and to the right?
True scaling requires an understanding of the full economics of the business, partnering cross-functionally to ensure alignment and having the tracking and analytics infrastructure in place to connect the dots. Ignoring this approach can raise several risks:
• If you measure only lead volume and CPL¹, you might flood the sales team with leads that aren’t worth chasing or never convert to customers
• If you measure only purchases and ROAS¹, you might favor products with worse margins or repeat rates.
• If you measure only trial starts and CPA¹, you might stuff your product with poor-fit users who never turn into revenue or churn quickly.
Factor in opportunity cost and the issue compounds.
Marketing is a constant balance of (1) working to find that next growth lever and (2) becoming more efficient. It’s a dance that, when executed properly, is a beautiful, scalable thing.