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How can companies reduce CAC and increase revenue per user in a go-to-market strategy that emphasizes sales and customer success spend?
David Peterson
Partner at Angular Ventures
Yeah. Yeah. So, two thoughts come to mind.
One is, with products like the ones we're talking about, which may be bottoms up adopted, but are much more complex and provide candidly way, way more value to the end user, I think basically everybody can be charging more. Like you shouldn't be anchored to the price of Dropbox or Slack You should be charging way more than products like that.
Which I think you see, right, in a lot of these products. Like this new era of bottoms up adopted products, they're no longer $5 per user or $4 per user. Like people are charging $20, $30, $40, $50 per user. So, that is a different universe, from a price point of view, which helps you with your cost of acquisition.
Another thing to think about with a lot of these products is how widely they can be adopted within an organization, and how that can influence how you think about the cost of acquiring an initial user.
This is a little bit more relevant to a company like Airtable, which is this purely horizontal product than a product that is a little bit more vertically focused, or functionally focused.
But with Airtable, we would think a lot about, what is the land use case, or hook use case where we can get into an organization? And then, what are the natural ways that we might expand over time?
And what that lets you do is it lets you think about, well, the flipside of the cost of acquisition of this one team isn't just about the LTV of this team over time, it's all of the natural expansion we expect we'll see, because we've seen this before it at similar organizations as well.