Your spreadsheet looks pretty cool. I think though that you could really do with a little more explanation about why it's doing some of the things it's doing.
Take, for example, Customer Acquisition Cost Ratio (CACR) for the 2nd quarter (cell [H33])
Going by the formula that's:
[H33] = CACR for 2nd Quarter =
(
([CMRR for June] - [CMRR for prev March])
* 4
* ( [Gross profit for Q2] / [Total CMRR for Q2] )
)
/ [Marketing costs for Q1]
Why do we only use the numbers for March and June? What is that magic 4? Why are we dividing by the previous quarter's marketing?
Your post is your chance to explain why you are right and why we should trust your spreadsheet. Don't just wave your hands and say "it's complicated".
Appreciate the feedback. I learned how to calculate those numbers from Bessemer Ventures PDF, which I linked to in the article. Essentially you're taking the difference in CMRR for the quarter and annualizing it, then dividing by the marketing cost for the previous quarter.
Take, for example, Customer Acquisition Cost Ratio (CACR) for the 2nd quarter (cell [H33])
Going by the formula that's:
Why do we only use the numbers for March and June? What is that magic 4? Why are we dividing by the previous quarter's marketing?Your post is your chance to explain why you are right and why we should trust your spreadsheet. Don't just wave your hands and say "it's complicated".