Wasted Resources & Skyrocketing Customer Acquisition Cost (CAC): effort into prospects unlikely to convert or retain is fundamentally inefficient. It means paying for leads that never become profitable customers, drastically inflating your CAC and diminishing your overall ROI.
High Churn Rates: The Leaky Bucket Syndrome: Customers acquired without phone number list genuine intent or a deep alignment with your solution often churn quickly. This constant loss negates acquisition efforts, forces continuous re-investment in new leads, and prevents the compounding growth that comes from a stable customer base.
Brand Dilution & Reputation Damage: Misaligned or ill-fitting customers are more likely to be dissatisfied, leading to negative reviews, strained customer support resources, and a diluted brand reputation. This erodes trust and makes it harder to attract ideal customers in the future.
Distorted Growth Metrics & False Positives: Apparent "growth" in revenue or customer numbers can be dangerously misleading if it's undermined by poor retention and low Customer Lifetime Value (LTV). It's a treadmill where you have to run faster just to stay in place.
Pouring marketing spend and sales
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