A note from Sary

Allowable Acquisition Cost (AAC) is the marketing component of Lifetime Value. 'The higher the average customer's Lifetime Value, the more you can spend to attract a new customer, making it possible to spread the word about your offer in new ways. The first sale is sometimes called a "loss leader"-an enticing offer intended to establish a relationship with a new customer. Banks and financial services firms will often encourage qualified prospects to open an account by giving them hundreds of dollars in free waivers, gifts, or, in some cases, cash.

Sary The Personal MBA, page 189 · November 1, 2023 Save to shelf
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