Customer Acquisition Cost: Why You May Be Spending Way Too Much

Determining how much to spend to acquire a new customer is critically important. Almost all companies want to add new customers, growing top-line revenue, but only should do so if they're growing in a smart way. Bad growth, where the unit economics don't make sense, is not worth pursuing and can kill a company in the long-run. That said, the analysis behind determining how much to spend to acquire a new customer should generally be conducted as it would be when acquiring any other asset – with a detailed review of the asset's cash flows. It's surprising then that some industry commentators (i.e. the blogosphere) seem to take such a basic view of the relationship between Customer Lifetime Val

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I'm a lifelong learner, and enjoy thinking about and discussing business ideas, economics and culture. This blog is where I occasionally post some of my thoughts re: all of the above.

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