"Streaming giants are struggling with a big churn conundrum: Only a third of users stick around." bloomberg.com/news/articles/…
25iQuiz: Is the cost of a free trial COGS or CAC? Is that expense above the gross margin line or below?
25iQuiz: Is the cost of a free trial COGS or CAC? Is that expense above the gross margin line or below?
"A business that ignores even small changes in churn often ends up dead. As with any metric, it is better to be roughly right in calculating churn than to be precisely wrong. It is also important to understand that there are sneaky ways to hide churn..." google.com/amp/s/25iq.com…
There isn't any GAAP rule since the accounting rules assume all businesses are manufacturers from decades ago. 😉 Hopelessly out of date.
Tren: Someone on a free trial is a prospect. They are in a sales funnel, but not converted to paid. Giving a prospect free service is CAC.
Tren: Someone on a free trial is a prospect. They are in a sales funnel, but not converted to paid. Giving a prospect free service is CAC.
