I recently read "Hacking Growth" and found the concept of "Growth Equations" very interesting, so I'm looking for more examples and writing about this. I'm particularly interested to see examples of growth equations applied to different business models, and discuss how granular it is helpful to go. For example, for a direct-to-consumer ecommerce brand, it could be as simple to say: (# Sales Units) x (Average unit value) = Sales Revenue. But that's not very insightful or actionable. So perhaps it's more helpful to look at something that better helps understand how to move the lever for the business, such as: ((Sales Units) x (Av. Value)) - (CAC) = Gross Profitability? Then, of course, you could subdivide from there, breaking "sales units" down into which units come from paid, organic, referral or repeat customers, and look at the CAC separately for each. Or you could break out the funnel for how you get to those sales units, such as visits to product and conversion rate to sale. But then it gets very granular and complicated. What do you think?
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