
Stop Squeezing The Sponge
Ecommerce Playbook: Numbers, Struggles & Growth
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Is CAC Degrading?
The problem happens when a business has an expectation of short-term profitability. It starts to become less efficient to acquire new customers. What brands will often do to offset that is they'll maybe send a extra email at first. That's like the lightest version of this. Just get a little more out of the customers that they have. Then it starts to become like a promotion. Oh, shoot, we're missing revenue. Somebody run a sale to our customers to squeeze a little more from them. But all you've done really in that sale is take all those customers and you brought the revenue that they would have generated over a slower, longer period of time forward. You didn't really
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