Marketing’s Race to the Bottom: Why Margins Are the Wrong Business Metric
20-second read
Whoever spends the least amount of money to acquire the most customers wins.
Sure. Mathematically this makes sense.
But this is a really shallow way to look at business. Especially if you’re value prop to customers is some measure of change.
(“We’re changing the way [X] does [Y]!”)
If your brand is about changing the way your market thinks, behaves, operates, or solves problems, then adoption, fulfillment, influence, and connection are infinitely more valuable than maximizing margins.
Achieving that level of stickiness with your buyer typically costs more in the form of time, effort, and patience. And rightly so. It’s worth the most. At least it is to them.
Making less is worth it when the end result is change (and dramatically higher customer retention for all you dollars and cents people).
—Nate