We thought the questions asked in the discussions area in our Crowdfunding Raise were superb so we wanted to replicate them here. Please let’s keep the discussions going and put forward your ideas to keep growing Crunch (and therefore your investment!)
Investor query (originally posted in Seedrs):
Congrats for all your achievement so far. Looks like an excellent product. Can you share any data on the unit model, ie customer acquisition costs, contribution margin, lifetime value / churn? Many thanks
Our response:
Firstly, thank you so much for your kind comments!
Thank you for your questions which I’ll answer as follows.
Some of your requests for unit data are very commercially sensitive, however, in the spirit of openness we have supplied the following information in as much detail to help you with your decision and at the same not to disadvantage Crunch with our competitors.
LTV: We measure LTV across all of our product ranges. For our two major products, the medium lifetime average is 4.2 years, and the average LTV of these two products is £4,300.
We currently do not have LTV for Freemium as it is just coming up to its first complete year of being live.
Churn: is measured across our paid and freemium products the average churn for this financial year is 1.41% per month. Which seems to be lower than some of our competitors.
Customer acquisition costs: This is measured across all products and prior to the introduction of the Freemium product, the average CAC for FY2018 to FY2020 was £528.50, after the launch of Freemium this reduced to £47.95. This shows one of the many benefits of our new business model.
I hope that answers your questions.
Thanks,
Stephen Head of Finance
