Customer Acquisition Cost
also referred to as: cac · customer acquisition costs
4 statements across 3 episodes · 1 bullish · 2 bearish · 3 people on the record · first statement Dec 13, 2017 by Des Traynor · across every show →
Everything said about Customer Acquisition Cost, oldest first
Dec 13, 2017 negative
Engineering-driven paid search rarely works as a deterministic growth engine
“The engineer's approach to marketing is, like, We're going to hire a marketer, and they're going to find the keywords that are CAC LTV positive. That is, the customer acquisition cost is less than the LTV, and we're going to dump all of our fifty million dolla…”
May 8, 2019 negative
Halligan: CAC and LTV metrics are unhelpful in a startup's first year
“And then later, we really got obsessed with cost to acquire a customer, and total lifetime value of customer, and what's the return on that cost to acquire a customer. That's not very helpful in your first year of a startup, though.”
Dec 15, 2022
Epstein: Free organic distribution significantly outperforms paid customer acquisition
“If you are able to get users for free because other users of your product tell new users to come join, and you're competing with a company that has to pay to acquire their customers, Then you are going to grow much faster and capture way more of the market.”
Dec 15, 2022 positive
Epstein: Predictable revenue makes recurring models consistent startup winners
“We also see that recurring revenue consistently creates winners. And this is because it is highly predictable. Once a customer has committed to pay, they're going to continue paying until they explicitly say that they want to stop paying. They also have higher…”