Rand Fishkin
๐ค SpeakerAppearances Over Time
Podcast Appearances
And now we have qualified customer ARPU, qualified customer ARPU,
Sure.
Qualified customer cost of customer acquisition, all of those numbers.
No, we want to we actually don't want to dump money into these channels because our sense is that the churn rate is way too high and we cannot afford to churn through, you know, a huge segment of our market and disappoint a lot of them.
And so instead, we are doing the opposite, where essentially we're being moderately conservative, I'd say, with marketing spend, not trying to fill the funnel dramatically more than what we already have, which is between 150 and 200 new free trials every day.
um and essentially say hey how do we uh get this product so that it is stickier and more addictive and better and you know serves these customers i think look if we get down to um
4% maybe or under gross churn or below 2% for qualified customer churn, then we would be feeling a lot more comfortable about dumping dollars.
Yeah, I think for them, their big answer from that, in my memory, is that they had a high recidivism rate.
So something like 30% of all signups, you know, in the last few years were people who had signed up with them before.
So basically they, you know, they were kind of like... Off and on holiday seasonal accounts.
Yeah, exactly.
It was kind of like, who is like that a little bit?
Costco is like that a little bit, right?
Where essentially like you have customers who are like addicted to you for a while and then they don't come for a long time and then they come back to you and go to you again for a while and then they leave and that kind of thing.
It's almost like the car sales market, right?
It's like, well, if we can make you into a loyal Toyota customer,
You know, Toyota might get money from you every five to 15 years.
Yeah, yeah.
I mean, predictability on that is is crappy and that's no fun.
Yeah, it was super tough and not a not a tremendously fun experience.