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Focus on ROI, Not CAC
Prioritizing lifetime value (LTV) over customer acquisition cost (CAC) leads to better user acquisition strategies. A tendency to obsess over CAC can result in attracting lower-quality users, as emphasizing CAC may push teams to pursue cheaper acquisition channels. Instead, the focus should be on achieving a higher return on investment (ROI) by targeting the best users, even if it means increasing CAC in the short term. This granular approach allows teams to discern which channels yield more value, thereby optimizing user quality and overall ROI.