Truth 1 – Slashing CAC isn’t everything But, Michael, isn’t slashing the Customer Acquisition Cost our life’s purpose? You even post that on your IG stories! (Don’t hate me for the filter, thanks. Shoutout to the guys at myscreenbreak.com that enable reading blog posts on paper)
Thank you for this piece - it echoes a lot of sentiments that I have regarding performance between FB and Google. Surprised nobody else is talking about these points - I guess it's easier to create a SEO-optimised blogpost about how to run GA and read reports from GA, rather than a long rant about how GA is not that effective in terms of helping you seeing the full picture.
Regarding high CAC: (1) B2B firms tend to have much higher CACs (and post-acquisition customer valuations) than B2C firms; (2) the notion of “high” CAC is only relevant compared to the profitability of customers after they have been acquired; as long as customers’ post-acquisition value (PAV) is well above CAC, then it is completely fine for a firm to have a high CAC.
Thank you for this piece - it echoes a lot of sentiments that I have regarding performance between FB and Google. Surprised nobody else is talking about these points - I guess it's easier to create a SEO-optimised blogpost about how to run GA and read reports from GA, rather than a long rant about how GA is not that effective in terms of helping you seeing the full picture.
Regarding high CAC: (1) B2B firms tend to have much higher CACs (and post-acquisition customer valuations) than B2C firms; (2) the notion of “high” CAC is only relevant compared to the profitability of customers after they have been acquired; as long as customers’ post-acquisition value (PAV) is well above CAC, then it is completely fine for a firm to have a high CAC.