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Impact of Increasing Customer Acquisition Costs on Private vs. Public Companies
As customer acquisition costs have doubled over the past few years, private companies are more significantly affected compared to public companies due to their lack of competitive advantages. Public companies, especially in the SaaS sector, are in a mature category with strong leadership, high customer demand, and established market presence. The increase in customer acquisition costs has led to a 50% decrease in growth rates for public companies and a doubling of the payback period. Sales and marketing costs have become the most expensive process in B2B companies, particularly the process of converting in-market accounts into new customers.