Calculating Lifetime Value

Understand the concept of lifetime value and its importance for e-commerce success.

Learn the formulas for calculating LTV and identify the inputs needed for accurate calculations.

Explore the relationship between retention, churn, and LTV.

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OMTM (One Metric That Matters)

Focus on the single most important metric that aligns with your growth goals.

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OMTM (One Metric That Matters)

Focuses on a single key metric that best reflects the core value that your product or service delivers to customers.

Helps in aligning team efforts and resources towards improving that metric.

Changes as the business grows and different challenges become more pressing.

What is OMTM?

Imagine you're on a treasure hunt, and among the many clues, there's one that's the most crucial to finding the treasure. In the world of startups and growth, the OMTM is a bit like that vital clue. It's the single most important metric that a company should focus on at a particular stage of its growth or during a specific initiative. It's about cutting through the noise and concentrating all efforts on one metric that truly matters at that moment.

Why is OMTM Important?

In the fast-paced startup environment, resources (time, money, manpower) are often limited. OMTM helps in:

  1. Focused Growth: By zeroing in on one metric, teams can align their efforts and drive growth more effectively.
  2. Clarity: It simplifies decision-making and provides a clear direction for everyone in the company.
  3. Agility: As the company evolves, the OMTM can change, allowing the business to pivot and adapt to new challenges or opportunities.

How Do I Identify My OMTM?

  1. Understand Your Stage: A brand-new startup might focus on user acquisition, while a more mature company might look at customer retention.
  2. Ask the Right Questions: What's the biggest challenge or opportunity right now? What metric, if improved, would have the most significant impact?
  3. Review and Adjust: As goals are achieved or the landscape changes, revisit and redefine your OMTM.

In a Nutshell...

OMTM is all about laser-focused growth. It's the guiding star that directs all efforts towards a singular goal, ensuring that everyone is on the same page and moving in the same direction. By identifying and rallying around the One Metric That Matters, companies can navigate the complex startup journey with clarity and purpose.

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Frequently asked questions

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Ewoud provided me with the right tips to gain more focus in my work, set long- and short-term goals and make more strategic decisions. Thanks to Ewoud, my day-to-day work is clear and fixed, whilst working on goals that help our business grow.

Machteld van der Does
Machteld van der Does
Senior Allround Marketeer