The two broad categories of customer focus that you can consider for a new product
What are acquisition and retention
The meaning of the acronym NPV
What is Net Present Value
The definition of the acronym SG&A
What is Selling, General and Administrative Expenses
The strategy that leads your loyal customers to buy more or different products from you
What is retention stimulate demand
A type of revenue that is above your previously planned revenue target
What is incremental revenue?
By reducing the amount of money spent on your sales team you would expect this to happen to your SG&A rate
What is decrease
The strategy that targets attracting new customers to your product and grows the market
What is acquisition stimulate demand
These two factors can impact top-line revenue
What are Sales volume & Unit price
Type of analysis that can show possible variations in NPV based on input values for key assumptions
What is sensitivity analysis
The strategy that aims to increase consumption of our products with multi-brand customers
What is retention earn share
A popular profitability metric used to evaluate how well an investment has performed, calculated by dividing an investment's net profit (or loss) by its initial cost
What is Return on Investment (ROI)?
This key factor determines the discount rate
What is risk
The strategy where you target converting competitive accounts into our customers
What is acquisition earn share
Which makes more business sense, product "A" with $500M incremental revenue potential and an NPV of $3M or product "B" with $45M incremental revenue potential and an NPV of $12M?
What is product B
The amount of money you will gain or lose if you sell a product for $15 instead of $10 but the COGs for the product increase from $5 to $9
What is 1 dollar more