In this presentation Matthew Trifiro talks about the revolution brought by the "anything as a service" business, where you subscribe to receive a service instead of buying products. He starts with a few examples on how he can now subscribe to receive toothpaste on a regular basis or any other product. He then proceeds to define some of the important metrics for this any of business:
- Monthly Recurring Revenue (MRR) - the revenue generated monthly by a customer.
- Customer Lifetime Value (CLV) - the total sum of revenue a customer generates.
- Customer Acquisition Cost (CAC) - the total sum of money spent to acquire a customer.
- Retention Rate - percentage of customers that come back and make a purchase in the following month.
By using these metrics, Matthew shows how to increase the conversion rate at every point and the velocity of the overal conversion funnel.