4.6 • 1.3K Ratings
🗓️ 18 June 2023
⏱️ 8 minutes
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0:00.0 | All right, so we're gonna talk about the metric that's potentially more important than customer |
0:04.8 | acquisition costs because the macroeconomic environment that we're in is a little different. |
0:10.8 | Now, what do you think that might be, Neil? |
0:12.8 | If you have customer acquisition costs, you have CAC. |
0:15.1 | What do you think the counter might be? |
0:17.0 | I don't know, but the most important metric that we look at is LTV over anything else. |
0:21.7 | Okay. |
0:22.7 | If we look at LTV and the profitability of the LTV, because that dictates what we do in |
0:26.6 | all of our marketing and shockingly, a lot of businesses don't really know their real |
0:31.6 | LTV. |
0:32.6 | They kind of have idea. |
0:33.6 | They say they're track it, but in a lot of cases, it's inaccurate and it's all agreed. |
0:37.7 | So what I would say at a high level is what LTV matters, but this kind of goes hand in hand |
0:42.5 | with LTV and you probably know where I'm going with this. |
0:44.9 | And so I'm gonna share this post over here, Elaine and Verna, I want to give her credit |
0:49.0 | for this because this is kind of the basis for this podcast. |
0:52.8 | So this post is entitled or not entitled. |
0:55.8 | It's titled, Cost of Acquisition CAC Trap. |
0:59.1 | And this is from her newsletter, Elena's Growth Scoop. |
1:02.1 | And her argument here is that just focusing on CAC is the wrong move and the move is to |
1:08.5 | focus on payback period instead. |
1:10.4 | So there's a highlight over here that I put in. |
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