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A guide for mentees: Unit Economics for Mentees

What Unit Economics shows, how to fill it in and what happens next.

English

What this guide covers

What it is

What one customer is worth

Four monthly numbers show a customer’s value and how fast their cost comes back.

Your numbers

Revenue per customer per month300Gross margin70%Customers lost per month5%Cost to win one customer1,500

Results

Value of one customer4,200Stays about 20 months Value to cost2.8 : 1Rule of thumb: 3 : 1 or more Cost earned back in7.1 monthsRule of thumb: within 12 months

Price 20% higher 3.4 : 1 Margin 20% higher 3.4 : 1 Churn 20% lower 3.5 : 1 Cost to win 20% lower 3.5 : 1

Why it helps

Growth can hide a loss

A business can grow and still lose money on every customer.

Best guesses are fine you can measure them later
Your own numbers nobody grades them
One lever one thing to try this month

Filling it in

Fifteen minutes, in two steps

Enter four numbers, then choose the lever you will work on.

Enter four monthly numbers

Revenue, margin, customers lost and the cost to win one.

Watch the results change

They update as you type, with a rule of thumb beside each.

Choose one lever

Pick price, margin, keeping or winning customers, and say how.

Enter four monthly numbers

Revenue, margin, customers lost and the cost to win one.

Your numbers

Revenue per customer per month300Gross margin70%Customers lost per month5%Cost to win one customer1,500

Results

Value of one customer4,200Stays about 20 months Value to cost2.8 : 1Rule of thumb: 3 : 1 or more Cost earned back in7.1 monthsRule of thumb: within 12 months

Price 20% higher 3.4 : 1 Margin 20% higher 3.4 : 1 Churn 20% lower 3.5 : 1 Cost to win 20% lower 3.5 : 1

Watch the results change

They update as you type, with a rule of thumb beside each.

Your numbers

Revenue per customer per month300Gross margin70%Customers lost per month5%Cost to win one customer1,500

Results

Value of one customer4,200Stays about 20 months Value to cost2.8 : 1Rule of thumb: 3 : 1 or more Cost earned back in7.1 monthsRule of thumb: within 12 months

Price 20% higher 3.4 : 1 Margin 20% higher 3.4 : 1 Churn 20% lower 3.5 : 1 Cost to win 20% lower 3.5 : 1

Choose one lever

Pick price, margin, keeping or winning customers, and say how.

Unit EconomicsSaved

Step 1 of 2

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Before you send

Every step is filled in. Send answers

1Enter four monthly numbers

Your numbers

Revenue per customer per month300Gross margin70%Customers lost per month5%Cost to win one customer1,500

Results

Value of one customer4,200Stays about 20 months Value to cost2.8 : 1Rule of thumb: 3 : 1 or more Cost earned back in7.1 monthsRule of thumb: within 12 months

Price 20% higher 3.4 : 1 Margin 20% higher 3.4 : 1 Churn 20% lower 3.5 : 1 Cost to win 20% lower 3.5 : 1

2Watch the results change

Your numbers

Revenue per customer per month300Gross margin70%Customers lost per month5%Cost to win one customer1,500

Results

Value of one customer4,200Stays about 20 months Value to cost2.8 : 1Rule of thumb: 3 : 1 or more Cost earned back in7.1 monthsRule of thumb: within 12 months

Price 20% higher 3.4 : 1 Margin 20% higher 3.4 : 1 Churn 20% lower 3.5 : 1 Cost to win 20% lower 3.5 : 1

3Choose one lever

Unit EconomicsSaved

Step 1 of 2

PreviousNext

Before you send

Every step is filled in. Send answers

On Mentornity

Find it, fill it in, send it

Your mentor’s tool waits on your home page until you send it.

Find it on your home page

Tools to fill in shows what was sent, and by whom.

Stop whenever you like

Your answers are saved as you go.

Check, then send

Before you send, you see any step left empty.

Find it on your home page

Tools to fill in shows what was sent, and by whom.

Tools to fill in (1)

Unit EconomicsFrom Rachel Bennett To do See all

Stop whenever you like

Your answers are saved as you go.

Unit EconomicsSaved

Step 1 of 2

PreviousNext

Before you send

Every step is filled in. Send answers

Check, then send

Before you send, you see any step left empty.

Unit EconomicsSaved

Step 1 of 2

PreviousNext

Before you send

Every step is filled in. Send answers

1Find it on your home page

Tools to fill in (1)

Unit EconomicsFrom Rachel Bennett To do See all

2Stop whenever you like

Unit EconomicsSaved

Step 1 of 2

PreviousNext

Before you send

Every step is filled in. Send answers

3Check, then send

Unit EconomicsSaved

Step 1 of 2

PreviousNext

Before you send

Every step is filled in. Send answers

What happens next

You talk it through together

Your mentor reads your numbers, comments and agrees next steps with you.

Only you two program admins do not see the answers
Comments on any part of it
Next steps who does what, by when
Still editable change answers after sending

Bring rough numbers, not perfect ones

Fill it in before you meet, and your mentor will help you check the guesses.

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