Is your company's growth starting to plateau? It happens to every business, and it happens often because growth is never linear. The key to pushing past these growth plateaus is generally the same: Double-click on the revenue drivers, find exciting trends, and identify initiatives to unlock those. Two questions to ask yourself to make this process fast: 𝟏. 𝐃𝐨 𝐈 𝐡𝐚𝐯𝐞 𝐚𝐧 𝐚𝐜𝐪𝐮𝐢𝐬𝐢𝐭𝐢𝐨𝐧 𝐨𝐫 𝐫𝐞𝐭𝐞𝐧𝐭𝐢𝐨𝐧 𝐢𝐬𝐬𝐮𝐞? Map your revenue by cohort and understand what is the weak spot. Is it not enough new revenue or a decline in older cohort revenue? 𝟐. 𝐀𝐫𝐞 𝐦𝐲 𝐮𝐧𝐢𝐭 𝐞𝐜𝐨𝐧𝐨𝐦𝐢𝐜𝐬 𝐠𝐞𝐭𝐭𝐢𝐧𝐠 𝐰𝐨𝐫𝐬𝐞, 𝐬𝐭𝐚𝐲𝐢𝐧𝐠 𝐭𝐡𝐞 𝐬𝐚𝐦𝐞, 𝐨𝐫 𝐢𝐦𝐩𝐫𝐨𝐯𝐢𝐧𝐠? Think LTV:CAC as a unit economic KPI. If your unit economics aren't getting worse, then ask yourself why you didn't invest more. If they are getting worse, dig deeper—do you see more favorable unit economics across other dimensions (breakdown by channel, geography, product line, customer type—and any combination of those)? This approach will help you unlock growth in 90% of cases. It will help you get the team focused on the right problems and start executing against those. The key is to build, learn, and measure on a weekly basis so your team has solutions to overcome the next growth plateau before it arrives. And for the other cases, you will need the help of your Product and Brand leaders. Do you have stories on how you unlocked growth?
Love this! #1 reminds me of something an old boss of mine would always ask as we approached any optimization exercise: "Is the leak within the funnel, or in the bottle?"
Growth Strategy Consulting
5moAgree! Regarding 2, if your CAC is increasing, I will investigate the CPM/CPC cost trend in addition to double-checking the acquisition channels. Sometimes, for specific industries, seasonality changes can quickly impact the cost.