The channel was cheap because you weren’t buying much of it

Doubling spend in your lowest-cost acquisition channel rarely doubles customers, and the reason usually has nothing to do with execution.

By Steve 5 min read
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A familiar moment in a management meeting: the acquisition report shows one channel bringing in customers at a fraction of the cost of the others. The conclusion writes itself. Move the money. Six months later, spend in that channel has tripled, customer numbers are up perhaps forty percent, and blended acquisition cost is worse than when the conversation started. Nobody did anything wrong. The mistake was in the number, not the execution. The reported figure was an average cost per customer at the volume you happened to be buying. The…

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