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What is customer acquisition cost and why does it matter?

Intercom, Inc.

Multiplying clicks times cost per click tells us that we paid $500 for 10 customers with Ad 1, $1000 for 10 customers with Ad 2, and $2000 for 10 customers with Ad 3. For Ad 1 it was $5 per click, for Ad 2 it was $10 per click, and for Ad 3 it was $20 per click. Most businesses typically use a 1-, 3- or 5-year LTV calculation.

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The Definitive List of Top SaaS Blogs and Influencers

SaaSHolic

We’ve decided to put together a killer list, categorized and organized to help you find and consume world-class SaaS and subscription content from the best people and companies in the market. Scott Maxwell Scott has been a Venture Capitalist since 2000. He’s tweets frequently and is definitely worth following.

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The Definitive List of Top SaaS Blogs and Influencers

SaaSHolic

We’ve decided to put together a killer list, categorized and organized to help you find and consume world-class SaaS and subscription content from the best people and companies in the market. Scott Maxwell Scott has been a Venture Capitalist since 2000. He’s tweets frequently and is definitely worth following.