,
4 tweets,
1 min read
Read on Twitter
1/ The primary drivers of business models:
a. More revenue per customer
b. Lower customer acquisition cost (CAC)
c. Lower customer churn/higher customer retention
d. Higher gross margin
One layer down: secondary drivers (eg, engagement) positively impacting primary drivers.
a. More revenue per customer
b. Lower customer acquisition cost (CAC)
c. Lower customer churn/higher customer retention
d. Higher gross margin
One layer down: secondary drivers (eg, engagement) positively impacting primary drivers.
2/ Because services are digital, businesses can use scientific method to improve the primary drivers. Many businesses sell services to help companies look at their data (telemetry) and discover via experimentation what can create positive changes in the business model.
3/ These data science tools are avilable to every business but knowing when and how to use them is still significantly a black art. You can't save all data and do every experiment yet due to cost. As everyone learns to use a given data science method, only customers benefit.
4/ All sources of competitive advantage are time stamped. They inevitably and swiftly disappear as competition eliminates the source. Only businesses that renew their sources of competitive advantage survive. This same rule applies to data science and digital commerce.
