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I think the section on customer acquisition cost really resonates with me. The corollary, I suppose, is that once you have some customer traction, looking at w
by andyidsinga 8y ago
I think the section on customer acquisition cost really resonates with me.
The corollary, I suppose, is that once you have some customer traction, looking at where those costs are is where you want to spend time with optimization. However, this begs some questions:
If I'm spending $500 for a $5000 customer - should I change anything at all to drive down that $500?
...which leads to: At what CAC:Cusotmer Value ratio should I start trying to drive down that cost relative to other costs in the biz?
Anyone have any real experiences from their biz' they can share on this subject?
- pedrocortes 8y agoThanks, glad you liked it. This it's something I've noticed people need to come back too when they focus too much on conversions. To answer your question that totally depends because in the end what you'll need is cash flow to maintain that reinvesting process and that's something (finances/management) I'm not an expert in :P
- andyidsinga 8y agoThanks for chiming in here. I've been reading some of your others articles. I like the very practical style and results focus.