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The Twenty Minute VC (20VC): Venture Capital | Startup Funding | The Pitch cover image

20Growth: Revolut's Chief Growth Officer on The Growth Playbook Revolut Used to Scale to $2.2BN in Revenue | How Revolut Launch and Grow Products | Why the Best PMs Don't Need A/B Tests & Why CAC is a BS Metric with Antoine Le Nel

The Twenty Minute VC (20VC): Venture Capital | Startup Funding | The Pitch

NOTE

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.

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