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The One Number (45) That Explains Constant Contact’s Success – Chris Yeh

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Genius Ideas

  1. Because Constant Contact retains customers an average of 45 months, at an average subscription rate of $39 per month, they make money even with a high customer acquisition cost.
  2. Sometimes a high acquisition cost is necessary to reach customers not available through SEO.

tl:dr

Small and medium sized businesses can’t afford to pay a lot monthly for a service.  They may also be difficult to reach online because they may not even know to searching for your product or service.  Employing higher touch customer acquisition techniques can be expensive.  High lifetime revenue via a long retention time can enable a company to employ those techniques.  Read how Constant Contact does just that.


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