Hernan Vazquez explains why Customer Acquisition Cost has a natural floor in competitive markets. Understanding this limit helps you set realistic expectations and know whether your acquisition strategy is actually profitable.
the number one metric that we do pay attention to is that gap. What is the difference between the cost to acquire a customer on advertising versus the lifetime value of a customer, right? Oh. And when you think about it, the cost to acquire a customer will always have a floor, right? Because when you are out there, when you're advertising, when you're pushing your content out there, you're also competing against millions of other people.
