So my last post I spoke about TAM, SAM and SOM. That was a fun game. Now to wake you up, what is your opportunity?
If you answered SOM you were correct.
Now if you're trying to convert your SOM you're doing great.
But how do you pursue your opportunity? Most will likely say they focus on cost to acquire customer (CAC).
Really they are doing this in isolation without context to their SOM (or realistic market share).
How would I do it?
I'd know my SOM, I'd know my CLV (customer lifetime value) and I'd having a moving number for my CAC. Because I'd want to know my maximum ability to push for opportunity.
As long as I knew my maximum daily spend and I knew how long someone would stay a customer I'd almost certainly remove any emotion from decision-making.
If you're focusing on acquisition, focus on maximising opportunity, know your CLV, and push for it. Foot on the gas.