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"Customer Acquisition Costs have risen so much, that it’s reached a tipping point where companies are finding its actually cheaper to find new customers the old-fashioned way." haydencapital.com/wp-content/upl… "CAC is the new rent.”
– Daniel Gulati
– Daniel Gulati
"Keeping a customer is much cheaper than trying to acquire a new one – and worse yet, likely at a much higher priced CAC than you paid years ago for the original customer you’re trying to replace." NPV is so much better when you don't need as many adds "gross" to grow "net" adds.
Some of the best ways to grow are: (1) not to shrink (2) to grow ARPU (AKA, negative churn) and (3) via organic (first party) distribution. Third party channels often deliver customers with lower quality based on a NPV analysis. Owning much of your distribution makes life better.
