The 5 Key Metrics to incorporate in your Pitch Deck
The popular television series, Shark Tank India has left an impressionable note in the minds of various entrepreneurs around the country. Such has been the case that many of these entrepreneurs are actually looking for investments from Angel Investment networks or Venture Capital firms. So, are you looking for an investment to expand your business?
“A journey of a thousand miles begins with a single step!” While the path to your investment might be colossal, the littlest of effort to get things started will be working on an impressive pitch deck. How would you do that? It revolves around having a business with a mighty idea, and providing the right statistics to back the idea. So, how will you present these statistics on your pitch deck?
Only 58% of successful pitch decks have a slide on the financials of the business. Hence, to make things easy for you and the investors you are pitching to, it is always wise to have a business intelligence platform that will present the key metrics of your business through interactive dashboards. So, let us look at some of the key metrics any investor would like to look at before investing in your business.
- Customer Acquisition Cost (CAC)
How many marketing activities did you conduct in the past financial year to build your market share? All of these activities have helped your business to acquire customers, and retain these customers. In a nutshell, the Customer Acquisition Cost (CAC) of any business is the the summation of all kinds of expenses related to sales and marketing like monetary discounts, loyalty credits, flashy offers, spend on marketing activities, etc.
For any investor, a business with moderate to low CAC attracts their attention and you should provide all kinds of analytics on the breakdown of your CAC through a business intelligence platform.
2. Customer Retention Rate (CRR)
While 44% of businesses focus on customer acquisition, only 18% of businesses focus majorly on customer retention. Customer Retention Rate (CRR) refers to a key metric that defines how your business is performing when it comes to retaining and keeping the customers active. Some of the major contributors to this metric are revenue analysis of repeat customers, QoQ analysis of repeat purchases, net promoter score (NPS) of your customers, etc.
An incremental change of 5% of CRR can increase any company’s profitability up to 95%. Hence, all investors tend to look at this metric and demand deep-dive analytics on the same.
3. Lifetime Value (LTV) of your Customers
Did your last investor ask you about the Lifetime Value (LTV) of your customers? If you were startled by this concept, you should know that investors look at the ability of any business to increase the LTV of their customers. 76% of businesses also agree that LTV is an important concept and have different kinds of enablers like loyalty programs to incentivize customers on each purchase, upselling programs through coupons and promo codes, cross-branding initiatives, etc.
With a business intelligence platform, you can have interesting analytics on the LTV and do a cost-benefit analysis on the same to showcase how sustainable your business will be in the long run.
4. Conversion Rate
Every business has an objective to fulfill and generate revenue through the same. The conversion rate is an important metric that defines any company’s ability to sell its products and services. While the revenue of the company along with customer cohorts contribute to this metric, the predictive analysis of any business intelligence platform will help you to show potential revenue and the uptick of the conversion rate over the years.
This kind of analysis backed by historical data helps businesses make effective decisions and also attracts investors to invest in the business.
5. Profit Margin
It is needleless to say that any investor will look at the profits of your business before investing. What more can you do about your profit margin? You can work around different kinds of reports like Year-on-Year (YoY) analysis, compounded growth rate, product profitability matrix, etc. that can help you to break down your business and make it more transparent to your potential investor. With this kind of transparency, you can easily cater to a greater number of investors and woo them to invest in your business.
In conclusion, all of these metrics will require data visualization and a combination of different kinds of charts and graphs to present to your investors the way they want the same. Hence, it is always wise to use a business intelligence platform to enhance the same and get better results. With Prism, the business intelligence platform from eWards, you can get all of this done and use the AI and ML-enabled platform for deeper and predictive analytics.
