Tag profitability

May 26, 2023

Cost of Acquisition (CAC) trap.

By Nikki L in Business Management, Finance, Sales Tag acquisition, cac, cost of acquisition, customer acquisition cost, growth, growth strategies, metric, profitability

by ELENA VERNA for Elena's Growth Scoop Cost of Acquisition (CAC) trap. And why you should optimize payback period instead. ELENA VERNA MAY 12, 2023 32 3 Share So many acquisition-focused teams tirelessly chase after reducing Customer Acquisition Cost (CAC) or making it just one-third of the Customer's Lifetime Value (LTV). Yet, they often find themselves disappointed with lackluster results. Because in this "money doesn't grow on trees" economy, where every dollar counts, the real hero is the velocity of the payback period. ROI is back, baby. Where can CAC-reducing goals go wrong? Many acquisition teams are mandated to lower the…

May 15, 2023

Usage-based pricing isn’t always best

By Nikki L in Revenue, Sales Tag optimize revenue, pricing model, pricing strategy, profitability, usage-based pricing

by Chris Reuter Usage-based pricing Usage-based pricing has been the darling of SaaS founders since Twilio, Stripe, and Snowflake broke through in the 2010s by generating monumental wealth for them and value for their customers. Ever since, investors and operators alike have tried to shoehorn consumption pricing into their products. However, there are some pretty hard and fast rules where it can be used effectively. 🪧 PSA: I’ll use the term usage or consumption pricing interchangeably from here on out, deal with it. First, the setting I’m not sure you’ve heard, but I’m from Maine. Coupling this with my experiences at a little company called IBM…