Growth isn’t guessing. It’s math. This one formula will help you crack it: I learned this lesson early in my career at McKinsey. During a major project, my team broke down the company’s entire business model into equations. It was the first time I saw how powerful it could be to reduce complex problems into simple math. ‘Driver Trees’ simplify business metrics into a clear, actionable blueprint. At the top is your main KPI, like revenue or profit. Below are the variables (CPC, CTR, AOV) driving results. Understanding these relationships helps you predict how small changes, like cutting $0.10 off CPC, affect your bottom line. Most teams operate in silos and speak different languages. → Marketing, clicks and CTR → Finance, EBITDA and ROI Driver Trees are your Rosetta Stone. They show exactly how a website click equates to dollars in the bank. This matters for two big reasons: 1. You stop wasting budget on channels that don’t move the needle. 2. You identify where small tweaks drive big profit spikes. Let me illustrate with a simple example: Revenue = Traffic × CVR × AOV Traffic breaks into sub-drivers like: • Paid Social = (Budget ÷ CPM) × CTR • Organic SEO, CRM Traffic, etc. A 10% boost in CTR can lower CPC, increase traffic, and ultimately lift revenue and EBITDA. At Aux Insights, we uniquely leverage Driver Trees to optimize PE-backed businesses. During due diligence, we uncover inefficiencies (e.g., underperforming ad channels) and shift focus to high-ROI opportunities. Post-acquisition, we diagnose the highest ROI tactics to efficiently move the EBITDA needle. We take this scientific approach further with a proven 5-step process. 1. Identify growth moves (e.g., paid ads, CRO). 2. Link tactics to KPIs (CTR, CVR, AOV). 3. Forecast impact with benchmarks. 4. Run A/B tests and measure real results. 5. Tie everything back to EBITDA. We built our name on approaches just like this. Helping brands, operators, and investors unlock 📈 returns. If this makes your inner math nerd do a happy dance, let’s talk! We’re HIRING former MBB consultants with growth marketing experience for EM and Case Partner roles. Tag a friend. Let’s chat. Apply below!
This is fire Jesse Pujji. It’s ridiculous how often and how easy it is to hide poor performance and accountability behind KPIs that don’t impact the business. I love that this gets marketing and sales on the same page, using the same language. Dope
Turning business metrics into simple equations is key to unlocking growth. Driver Trees make it so much easier to understand business dynamics and make informed decisions.
Love the visual for this, lays it out logically but really shows how all of these components play important parts.
This is the simplest and most powerful diagram for explaining growth marketing. Just...thank you.
This post is such a gem! 🔥
Jesse Pujji Driver Trees are an excellent way to bridge the gap between operational metrics and financial outcomes, especially in complex organizations. The focus on linking tactical moves directly to KPIs and ultimately EBITDA is a great reminder of the power of simplifying complex systems. How do you find teams best balance the depth of analysis with the speed needed for decision-making during due diligence?
The Driver Tree concept is brilliant—breaking down business metrics so clearly.
Clean chart! However sometimes just building awareness can boost performance on other channels where users are more ready to buy.
Founder/CEO @ Gateway X: Bootstrapping a venture studio to $1B. Previously, Founder/CEO of Ampush (exited).
7moWe're hiring for several roles at Aux Insights! auxinsights.com/careers