The Dangers of LTV
Founder's Journal
Marketing InEfficiency
Relying on the assumption that customer acquisition costs will drop as marketing spend increases is unrealistic. In reality, marketing channels become less efficient and more costly over time. As businesses compete for a limited resource - customers - the cost of acquiring them tends to increase. This leads to exhausting the best quality customers, forcing companies to either pay more to acquire good quality customers or settle for lower quality customers who churn faster or contribute less revenue.
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