How can I model the paid growth engine? [Offtoa Help Center]

How can I model the paid growth engine?

First, make sure you are modeling your sales using “customer acquisition.” To do this, select assumptions/revenues/sales models in the menu. If the top of your screen does not read “Sales Model » Customers by Marketing and Sales Effort,” press the blue “Select a New Sales Model” button at the bottom of the screen and then select “BU 3: Use Marketing and Sales to Drive New Customer Acquisition.”
In the paid growth engine, emphasis is on spending money to attract new customers. Unless you can transform the business into a sticky (by maintaining current customers and growing their revenues) or viral (by having current customers refer other customers) growth engine, you will only stay in business if you can continue to spend a small percentage of your profits on attracting future customers. Therefore, you should set the assumptions on this page as follows. In general, to focus on a sticky model of growth:

Expense Item or Employee Type: This is the most important item in the paid growth model. It defines the source of the funds to drive your growth.
Customer Acquisition Cost (CAC): This is the secret of your success. You want to drive this as low as possible.
Sales Cycle: Obviously the shorter the better.
Average Order Size (AOS): This should be as high as possible.
Periodicity: N/A
Retention Rate: The higher the better.
Viral Coefficient: N/A
Viral Cycle Length: N/A

Related Questions:

What is a sustainable growth engine?