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by tomplace
3701 days ago
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Hi Ig1. We shared top down as it's easier for people to visualize the size of the opportunity. Bottom up our revenue model projects CAC between $5-$8. We think this business is inherently viral because everyone everyone knows buys electricity, and people who find a simple way to save money are usually eager, even proactive, about telling their friends about it. We respectfully disagree with your assumption that the value prop diminishes over time or that we would have high attrition. The value is not in the relative price of the switched plans but in the total time & money savings to the customer versus staying with their more expensive incumbent supplier. The snapshot of a customer’s bill is only needed on signup, not ongoing. In fact our system is designed to be zero effort after signup. The whole point is for us to work in the background, saving our customers money without them having to worry about a thing. However we will employ site features and notifications to remind users of how much they’ve saved and will continue to save, as well as how much we’ve saved our customers in aggregate. Once a customer is in our system there is high incentive to stay and refer their friends, and little reason to leave. P.S. Thanks for Fizzbuzz! |
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