Firstly, thank you all for writing in. We love hearing from you — including the entrepreneurs that are upset with us for releasing their market shares. Also, we are NOT A MEDIA COMPANY and I am not a journalist. So if any company/entrepreneur is offended that I dint call them before writing about them. That’s just fine. This is a newsletter that combines proprietary data with proprietary opinion.
But do keep it coming — the good & the bad.
Moving on, TripAdvisor — Really did not see this one coming. Their attrition rates are the lowest in India. To me that’s indicative of one very interesting trend. That Indians are moving beyond the transaction to the experiential. No longer we are obsessed with the best deal and the lowest prices but we’re also investing in travel as an experience.
Everyone at office thinks I’m nuts but I feel attrition rates are important to show to the world. And more importantly to share with entrepreneurs. CAC isn’t necessarily the cost per download — more accurately and over time it’s — the cost per retained customer.
So where do these customers go? Who starts to fulfill the same needs?
The table above is a co-occurrence matrix. We shared it earlier but then I was told that some more back ground would be helpful. Essentially we try to measure that for every user who uses let’s say — AbhiBus — how many use RedBus? In this case that number would be around 67%. This exercise helps us understand who we are most likely to lose customers to.
Thanks for your time,
Ashish
- Team KG
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You can reach me on ashish@kalagato.com
