Armand Thiberge

Yeah, I mean, I think there are many ways to calculate the churn.

And at Senninblue, we calculate the churn after three months.

So for us, the first three months, it's a trial period.

We don't really know about what's happening at the starting point.

I mean, the first month is around 30 percent.

What we are looking at is the lifetime value of a customer.

And what's happening in the first three months is not very important.

So what we look at and when we optimize all our acquisition channels, we look at who are the customers after three months.

Whatever is happening between the first three months, we don't count that.

And it's some unwanted revenue.

And yeah, it's a revenue, of course, but we are not focusing on that at all.

What we look at is more the marginal CAC because we think that the CAC is not the right measurement if you have 90% of customers which are free and 10% which are paid at the same company having the same CAC for all their customers.

the second business would be much more healthy because it would have a CAC which is more scalable.

So what we look at is our marginal cost of acquisition.

And when marginal, it means the cost to acquire a new, an additional customer.

We have a lot of free customers and this is the world of house and this is the beauty of the SMB model.

But we look at the marginal cost of acquisition.

So what is your marginal CAC?

Marginal CAC, it's $500, $600.

But again, it's not an average CAC.