Customer acquisition costs can severely impact a business’s sustainability. Some merchants limit these costs to the first sale's gross margin or focus on the lifetime value of customers. Taylor Holiday, CEO of Common Thread Collective, advocates for a 'negative CAC' strategy. Common Thread Collective operates under an employee stock ownership plan (ESOP), providing shares to employees. However, Holiday notes the ESOP's challenges, including misunderstandings among employees and complications for business sale processes. Despite the potential benefits, he expresses hesitation towards the approach for future endeavors.
Acquisition costs can significantly impact business viability; some businesses limit these costs to initial gross margins, while others consider long-term customer value.
Taylor Holiday, CEO of Common Thread Collective, believes in a strategy called 'negative CAC', which aims for profitability through efficient customer acquisition marketing.
Common Thread Collective has adopted an ESOP model, allowing employees to earn shares through their payroll contributions and fostering a sense of ownership and investment in the company.
Holiday expresses concerns over the ESOP, noting challenges such as a lack of employee understanding and potential complications during a business sale.
#customer-acquisition-cost #employee-ownership #business-strategy #ecommerce-marketing #negative-cac
Collection
[
|
...
]