Customers
Customer Base
The customer base is the group of customers who repeatedly (often) purchase the goods or services. They are also considered to be loyal to your Brand or goods and services you provide. How often customers need to have repurchase of your service in order to be considered as Custome base is different for each market type and business itself.
Main features
- Ability to enter the beginning and end of the 3 customer segments
- Estimate growth based on organic and marketing channel
- Use attrition rate for estimating lost customer
- Forsee monthly and yearly forecast on the same sheet
- Apply seasonality index to tailor to your market trends
- Use Product multiplier to estimate monthly orders for 6 products.
Calculating the number of Customer
If you choose to estimate the revenue growth by the growth of the customer base in the configuration section, this section is used for providing assumptions regards the customer base.
In the Customer tab, you can set up up to three customers group with up to six services to sell. For example, you can set up a customer's group as;
In the Customer tab, you can set up up to three customers group with up to six services to sell. For example, you can set up a customer's group as;
- geographical region (domestic customers, regional customers, and international). You can differentiate different products and prices for different regions.
- Vertical (various industries)- Marketing agencies that focus on domestic, international clients.
- White label you sell the platform to another startup SEO company that wants to sell SEO services without investing in the application.
- Online businesses target companies that sell their services entirely online. (travel agencies, e-commerce, services)
The customer sheet is designed into 3 vertical sections. The first section is used for Input assumptions on a yearly level. The second section is used for viewing monthly forecasts, while the third section is used for an overview of client forecasts on a yearly level.
The customer sheet is designed into 3 vertical sections. The first section is used for Input assumptions on a yearly level. The second section is used for viewing monthly forecasts, while the third section is used for an overview of client forecasts on a yearly level.
The Customer growth model first takes into consideration estimated numbers of new customers from organic and paid growth. This is a good way to track how successful in attracting newcomers from your marketing campaigns and how much attraction comes organically.
A second important assumption is attrition rate, where estimate how much you lose customers. How can you measure the attrition rate? Firstly, you need to decide how long it has to pass without repeated sales for your customer to be considered as a lost customer. it usually depends on the market you are in and the type of service you provide. For example, if you run an online dating website with a monthly subscription then it is pretty straightforward. It is the number of the canceled subscriptions. On the other hand, if you sell sportswear through web site shop then you need to decide how long it needs to be without repurchase. Google website tracking visitors can help in evaluating attrition rate.
In the part of the Customer growth model, we look into the monthly seasonality table and apply the percentages from the configuration sheet. Once we estimate the number customers base at the end of each month, need to estimate product (service) multiplayer for each service. For example, you have run a freemium model of online SEO platform for website users. So, in order to estimate your monthly order that will come directly from your customer base, you need to estimate a service multiplayer.
1. Free SEO tools with every signup: 1.0X (all customers will get access)
2. Premium Tools for tracking competition: 0,4X (only 40% of your total customers will pay for this)
3. Business accounts with 5 accounts 0,2X (20% of your total customers will pay for this.
Customer calculation flow
Assumption Drivers
In the Customer Section of the financial model, you can forecast the acquisition of new customers based on organic and paid marketing levels, as well as churn rate. In the same sheet, you can enter relationships with offered services in order to forecast the number of ordered services from that customer and also apply seasonality driver in order to accommodate for seasonal fluctuations over the year.
Entering main driver assumptions
Overview Reports
Once you enter the assumption, on the same sheet you can inspect how your customer numbers appear on a monthly and yearly basis. For more detailed information about your customer base and the value of a customer, you may find it on the Customer Dashboard and Customers LTV view.
