4 ms·
I'm no longer a customer of Groupon. The plural of "anecdote" isn't "data", but I don't know of any company where customer acquisition isn't a major cost. The t
by hvs 15y ago
I'm no longer a customer of Groupon. The plural of "anecdote" isn't "data", but I don't know of any company where customer acquisition isn't a major cost. The traditional business school number touted is that is costs 10 times as much to acquire a new customer as it does to maintain an existing customer.
EDIT: I know I may have counteracted my own argument, but my point was that customers are expensive, and the costs don't go away, even if they lessen.
- spanktheuser 15y agoIf you look at many subscription-based businesses (newspapers, cable providers, mobile voice/data companies), you'll often see businesses where the cost of acquisition is pretty low compared to the life-time value of a customer. Newspapers (pre-Web) are a particularly good example of this - most of their costs were in production/distribution. Acquiring a customer was relatively cheap and churn relatively low. So anecdotally, there are historical business models that feature low acquisition costs & low churn.