# ask-a-growth-question

Hisham Syed

10/17/2022, 4:18 PM
Hello! So good to be connected with you lovely folks. 🙌
I work at a healthtech company called Ultrahuman. We are rapidly growing across India and UAE, and are working towards reducing CAC but still hitting our revenue goals.
Anybody has experience in high ticket size subscriptions that are B2C? Would love to connect and understand drivers for: • CAC optimization • Creatives

Stefan Despotovski

10/18/2022, 8:22 AM
Hey @Hisham Syed In order for you to reduce CAC you need to increase CLF (Customer Lifetime Value). This especially is important for B2C companies. For example: A $10.00 customer acquisition cost may be quite low if customers make a $25.00 purchase every week for 20 years. If the value of your customer increases then the CAC gets lower. Here are few tips you can try out: • Improve on-site conversion metrics: One may set up goals on Google Analytics and perform A/B split testing with new checkout systems in order to reduce shopping cart abandonment rate and improve the landing page, site speed, mobile optimization, and other factors to enhance overall site performance. • Enhance user value: By the highly conceptual notion of “user value,” we mean the ability to generate something pleasing to the users. This may be additional feature enhancements/qualities that consumers have expressed interest in. It may be implementing something to improve the existing product for greater positioning, or developing new ways to make money from existing customers. For instance, you may realize that customer satisfaction ratings have a positive correlation with retention rate. • Implement customer relationship management (CRM): Nearly all successful companies that have repeat buyers implement some form of CRM. This may be a complex sales team using a cloud-based sales tracking system, automated email lists, blogs, loyalty programs, and/or other techniques that capture customer loyalty. Hope this helps.