All right, so we're going to talk about the metric that's potentially more important than customer

acquisition costs because the macroeconomic environment that we're in is a little different now.

What do you think that might be Neil if you have customer

acquisition costs you have kak what do you think the counter might be I don't know but the

most important metric that we look at is LTV over anything else okay and we look at LTV and the profitability of the LTV over anything else. Okay. And we look at LTV and the profitability of the LTV.

Because that dictates what we do in all of our marketing and shockingly a lot of businesses don't really know

their real LTV. They kind of have idea, they say they're track it, but in a lot of cases is inaccurate and it's off.

Agreed. So what I would say at a high level is what LTV, LTV matters, but this kind of goes hand in hand with LTV and you probably know where I'm going with this and so I'm going to share this post over here

Elena and Verna I want to give her credit for this because this is kind of the basis for this podcast.

So this post is entitled, or not entitled, it's titled

Cost of Acquisition Kac Trap.

And this is from a newsletter, Elena's Growth Scoop.

And her argument here is that just focusing. a lennonnen s

growth scoop and her argument here is that just focusing on kak is the wrong move and

the move is to focus on payback period instead so there's a highlight over here that

I put in so let me just give you this example over here. Those

you that can't see the screen. So let's say you have two channels. Channel A generates a high volume of customers with a

kayak, so customer acquisition, cost of customer acquisition of $5.

So that's channel A, a cack of $5.

Channel B brings in fewer customers but has a cack of $1,000. And so what she says here is that cheap acquisition is cheap for a reason.

Consider that Channel B, despite its high-cAC, attracts customers who convert to paid in less than a month,

recoup their acquisition costs, and contribute significant

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