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Acquisition Channels

Customer acquisition channels with conversion funnels and payment models. Each channel contains subchannels with individual parameters.

Conversion Funnel

Reach → Clicks → Installs → Sales

Clicks=Reach×Conv. to Clicks100Installs=Clicks×Conv. to Installs100Sales=Installs×Conv. to Sales100\begin{aligned}\text{Clicks} &= \text{Reach} \times \frac{\text{Conv. to Clicks}}{100} \\\text{Installs} &= \text{Clicks} \times \frac{\text{Conv. to Installs}}{100} \\\text{Sales} &= \text{Installs} \times \frac{\text{Conv. to Sales}}{100}\end{aligned}

Each subchannel has 4 funnel stages with conversion rates between them.

Used in: Channel sales calculation → newCardsThisMonth.

Affects: New cards → active cards → all model metrics.

Payment Models

CPM — per 1,000 impressions

Cost=Reach1000×Rate\text{Cost} = \frac{\text{Reach}}{1000} \times \text{Rate}

Payment per thousand impressions (reach).

Used in: channelsCost → totalMonthlyCost.

Affects: Channel expenses → CAC, P&L.

CPC — per click

Cost=Clicks×Rate\text{Cost} = \text{Clicks} \times \text{Rate}

Payment per click.

Used in: channelsCost → totalMonthlyCost.

Affects: Channel expenses → CAC, P&L.

CPI — per install

Cost=Installs×Rate\text{Cost} = \text{Installs} \times \text{Rate}

Payment per app install.

Used in: channelsCost → totalMonthlyCost.

Affects: Channel expenses → CAC, P&L.

CPO — per sale

Cost=Sales×Rate\text{Cost} = \text{Sales} \times \text{Rate}

Payment per completed sale (card issuance).

Used in: channelsCost → totalMonthlyCost.

Affects: Channel expenses → CAC, P&L.

Derived Channel Metrics

Subchannel CPI

CPI=CostInstalls\text{CPI} = \frac{\text{Cost}}{\text{Installs}}

Cost per install for the subchannel.

Used in: Display in channels table.

Subchannel CPO

CPO=CostSales\text{CPO} = \frac{\text{Cost}}{\text{Sales}}

Cost per sale for the subchannel.

Used in: Display in channels table.

Ramp-up (efficiency buildup)

Effectiveness Coefficient

Effectiveness=f(Months Since Start−Delay)Instant:E=1.0Linear:E=PExponential:E=P2where P=Months After Delay+1Ramp-up Months+1\begin{aligned}\text{Effectiveness} &= f(\text{Months Since Start} - \text{Delay}) \\\\\text{Instant:}\quad E &= 1.0 \\\text{Linear:}\quad E &= P \\\text{Exponential:}\quad E &= P^{2} \\\\\text{where } P &= \frac{\text{Months After Delay} + 1}{\text{Ramp-up Months} + 1}\end{aligned}

A subchannel can have a delay and ramp-up period. Actual sales = sales × effectiveness. Profiles: instant, linear, exponential.

Used in: Actual channel sales calculation.

Affects: newCardsThisMonth → entire model.

Referral Program

K-factor

K=Referral Rate100×Avg. Invites×Invite Conversion100Referral Users=Active Customers×K\begin{aligned}K &= \frac{\text{Referral Rate}}{100} \times \text{Avg. Invites} \times \frac{\text{Invite Conversion}}{100} \\\text{Referral Users} &= \text{Active Customers} \times K\end{aligned}

Viral coefficient: what percentage of users invite friends, average number of invitations per user, and what percentage of invitees convert.

Used in: salesFromReferral calculation → newCardsThisMonth.

Affects: New cards → activeCards → all metrics.

Referral Program Costs

Active Referrals=Referral Users×Activation Rate100Converted Referrals=Active Referrals×Purchase Conversion100For each reward:Reward Cost=Eligible Count×(Referrer Amount+Referee Amount)Referral Expenses=∑Reward Costs\begin{aligned}\text{Active Referrals} &= \text{Referral Users} \times \frac{\text{Activation Rate}}{100} \\\text{Converted Referrals} &= \text{Active Referrals} \times \frac{\text{Purchase Conversion}}{100} \\\\\text{For each reward:}& \\\text{Reward Cost} &= \text{Eligible Count} \times (\text{Referrer Amount} + \text{Referee Amount}) \\\\\text{Referral Expenses} &= \sum \text{Reward Costs}\end{aligned}

Costs include rewards for both the referrer and the referee. Reward triggers: purchase, retail purchase volume, P2P transfers, conversions, etc.

Used in: referralCost → totalMonthlyCost, CAC.

Affects: Total expenses → P&L, acquisition cost.

Related Topics

Channels SetupAcquisitionTeamOperationsUnit Economics