Personally, I think of companies as hierarchical equations where inputs at one level are outputs of the next. E.g., for a subscription co:– Revenue = Users * LTV– LTV = Conversion * Retention * ARPPU– Retention = D1 * W1 * M1 ……Eventually you get to ownable metrics.— Rob Dearborn (@RobDearborn) February 19, 2022
Personally, I think of companies as hierarchical equations where inputs at one level are outputs of the next. E.g., for a subscription co:– Revenue = Users * LTV– LTV = Conversion * Retention * ARPPU– Retention = D1 * W1 * M1 ……Eventually you get to ownable metrics.