Poor CAC payback
The short answer? Don’t bring it up unless asked. Including it in your pitch deck can create a negative impression. However, at the seed stage, many companies haven’t nailed their CAC payback yet. It’s not a deal-breaker as long as you have a solid plan to improve it.
Here’s the strategy: Focus on other metrics and the strategies you're implementing to reduce CAC payback. If asked, be ready with a compelling story and possibly a prepared slide on how you’ll improve it.
Visualize the current scenario: "Here’s our current customer acquisition cost, and here’s how much we earn per customer per month." Then, outline the steps to reduce CAC. For example, you might open a partner channel to reduce ad expenses or leverage influencers with large networks as unpaid brand ambassadors.
Next, explain how you'll increase revenue from customers. Perhaps you’re launching new features in the next six months that will drive up average revenue per customer and lifetime value (LTV). Show how these strategies will make your CAC payback more efficient.
As long as you have a clear, actionable plan to improve CAC payback, you can still attract investors. Focus on your strategies and improvements, and turn a potential negative into a demonstration of your strategic planning and adaptability.
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