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As a CPA, I think it’s important to bring awareness to taxes and accounting for small business owners. We will strive to improve PCX capabilities to reduce construction cost for clients while decreasing lead times. We have so far nailed all other aspects of our business and churn remains the only battle we have yet to win.
As a CPA, I think it’s important to bring awareness to taxes and accounting for small business owners. We will strive to improve PCX capabilities to reduce construction cost for clients while decreasing lead times. We have so far nailed all other aspects of our business and churn remains the only battle we have yet to win.
But we rarely think about the specifics of how we are going to reach prospects, and how much that’s going to cost. Since this will be easier to explain with an example, let’s start by looking at the cost of acquiring a customer using Google AdWords. your CPA jumps to $800. your CPA jumps to $800.
To become profitable using a freemium business model, this simple equation must hold true: Lifetime value > Cost per acquisition + Cost of service (paying & free) Said in plain english, the lifetime value of your paying customers needs to be greater than the cost it took to acquire them, plus, the cost servicing all users (free or paying).
If you have the data and resources, you can identify where people are stopping short and run tests to increase your conversion rate. Or if shipping costs are too high, experiment with alternative methods. This could be by reducing the cost, reducing the risk, or adding value. Cost per acquisition (CPA).
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