Strategy for Scaling

I got a very challenging problem as CTO on a +4Mi users company: how to scale a business. To add to the "dynamics," I discovered this on my first day, first meeting! (Sorry, I cannot mention their name). Believe me, I relish tackling big problems, especially because this is how I challenge my self for growth. Want to know more? The tech & product area lacked any metrics, KPIs, KVOs, etc. My first moment there was in a meeting with other directors, where the pressing question was: how are we going to scale? We then split into smaller teams, where I gathered more information from other areas, took their main KPIs from each area as reference at first, and built my own list using their targets.

I heard they pay a lot for CAC... 🤔 💡

Here's what I thought: although I didn't know much about the business yet, improving all core areas of the company seemed like a good start. I then came up with a list of technology KPIs, along with a cycle we should pursue to build and improve. That's the story behind my conclusion about the three elementary components to scale a business and the full cycle required to scale up a business.

Elementary components to scale a business

• Distribution (logistics, applications, web, etc)
• Product (services, applications, portals, web, etc)
• Customer Service (Customer Support, Ticket Evaluation, REC, etc)

Target Cycle

• High NPS -> High LTV -> Low CAC => SCALE Active Users 🚀
• Low CHURN -> High NPS -> High LTV -> Low CAC => SCALE Active Users 🚀
• Low CHURN -> ... => SCALE Active Users 🚀

At the end we could use low CAC to use same money spent before but to bring new users and scale the business. Sounds like a plan to you?

See how NPS is important to scale a business

graph TD
    A[High NPS] --> B[High LTV]
    B --> C[Low CAC]
    C --> D[SCALE Active Users]
    D --> E[Low CHURN]
    E --> A