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Focus on ROI, Not CAC
The interplay between brand strength and market competition crucially influences user growth. In some markets, a strong brand can lead to organic growth, while in others, competition may create a diminishing return, leading to higher user acquisition costs. A successful strategy prioritizes expanding the lifetime value (LTV) over customer acquisition cost (CAC). Relying too heavily on CAC can result in acquiring lower-quality users, detracting from overall business objectives. Emphasizing ROI over CAC enables the acquisition of higher-quality users, thereby improving profitability and promoting sustainable growth.