The blended CAC is £340. The next customer costs £900.

Average acquisition cost tells you what growth has cost so far. A different number decides how fast you can grow from here.

By Steve 5 min read
Abstract bridge artwork for The blended CAC is £340. The next customer costs £900.

A growth plan arrives with three figures on it: acquisition cost of £340, lifetime gross profit of £2,400, payback in seven months. On those numbers the conclusion writes itself: spend more. So spend goes up two and a half times, and eighteen months later acquisition cost has settled somewhere near £900, payback has stretched past eighteen months, and nobody can quite say when it happened. Nothing was mismeasured. The plan simply used an average to answer a question that only a marginal number can answer. The blend contains customers you…

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