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7 Powers with Hamilton Helmer
Acquired
The Importance of Customer Acquisition Costs in SaaS Systems
The way that these companies are financed are predicated on switching costs as a primary source of power. Once you get one of these SaaS systems in, there's just an expectation of repeat. The expected churn rates are fairly low. So what happens over time is that actually the value of the switching costs becomes arbitrage out by the acquisition cost.
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