The blended number is fine. The next customer isn’t.
Average acquisition cost stays reassuring long after the marginal one has stopped making sense, and the gap opens widest exactly when you're scaling.
SBy Steve··4 min read
A familiar pattern: marketing spend has doubled over four quarters, the reported cost of acquiring a customer has moved only modestly, payback still sits inside the target window, and yet cash is tighter than the model said it would be. Nothing in the dashboard is wrong. The number being watched simply isn’t the number that governs the decision being made. Average acquisition cost answers the question what did the customers we already have cost us? Every budget decision asks a different one: what will the next customer cost, and is…
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Important: General information only. Rialto Bridge articles describe patterns and considerations that may apply to a business; they are not financial, legal, tax or accounting advice, and they take no account of your particular circumstances. Consider your own situation and seek advice from a qualified professional before acting.