I’ve spent the better part of the last two decades selling marketing technology. Of the 11K martech solutions that exist today, the common thread they share is maximizing new business win rates.
I’m unaware of a single martech solution that considers the quality of the customers acquired. For example, what percentage of the customers we are acquiring are renewing, expanding, getting value, and driving inbound?
For subscription revenue businesses, on average, it takes eighteen months to pay back the cost of acquiring a customer. If the customer does not renew in 12 months, whelp, on average most companies will lose money on that customer. 🤷♂️
With this in mind, shouldn’t our martech tools help us acquire customers who have demonstrated a high propensity to pay back our customer acquisition cost (CAC)?
