{"id":2157,"date":"2020-03-26T19:58:26","date_gmt":"2020-03-26T14:58:26","guid":{"rendered":"http:\/\/hamad.blog\/?p=2157"},"modified":"2020-03-26T19:58:30","modified_gmt":"2020-03-26T14:58:30","slug":"customer-acquisition-during-recession","status":"publish","type":"post","link":"https:\/\/hamad.blog\/2020\/03\/26\/customer-acquisition-during-recession\/","title":{"rendered":"Customer Acquisition During Recession"},"content":{"rendered":"\n<p>I saw an interesting <a href=\"https:\/\/www.youtube.com\/watch?v=hd9DD4t85fM\">video by Garry Tan<\/a> where he mentioned that startups spend as much as 40% of the funds they raise on Google &amp; Facebook ads. That is a lot. In other words, 40% of all VC money is going to those 2 companies. This is obviously going to reduce in the coming months and so we could expect this to reflect in the earnings of these 2 companies.<\/p>\n\n\n\n<figure class=\"wp-block-embed-youtube wp-block-embed is-type-video is-provider-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio\"><div class=\"wp-block-embed__wrapper\">\n<iframe loading=\"lazy\" title=\"Q&amp;A with a PM Designer Engineer turned Venture Capitalist (Shelter in Place Edition)\" width=\"840\" height=\"473\" src=\"https:\/\/www.youtube.com\/embed\/hd9DD4t85fM?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; encrypted-media; gyroscope; picture-in-picture\" allowfullscreen><\/iframe>\n<\/div><\/figure>\n\n\n\n<p>During the upcoming recession caused by the COVID-19 pandemic, the advice that seems to be coming from everywhere is to have cash runway that lasts 18 months. <\/p>\n\n\n\n<p>In order for this to work, many startups are going to reduce their spending or risk survival. One option that all startups have is to allocate more time and resources to <a href=\"http:\/\/hamad.blog\/2019\/12\/16\/you-always-have-two-options-retention-vs-acquisition\/\">retain more customers instead of acquisition<\/a>, as the former is often cheaper. <\/p>\n\n\n\n<p>The startups that are going to continue to invest in customer acquisition need to know that the <a href=\"http:\/\/hamad.blog\/2020\/01\/24\/why-lifetime-value-ltv-is-a-survival-game\/\">lifetime value of customers<\/a> would most certainly be lower than what they were accustomed to. Because of this, an immediate recalibration would be required for ROI metrics. Acquiring customers on a better a ROI than before should be the norm for the next few months.<\/p>\n\n\n\n<p>These are difficult times for everyone including us but looking into pandemics of the past suggests that all this should be over soon. <\/p>\n","protected":false},"excerpt":{"rendered":"<p>I saw an interesting video by Garry Tan where he mentioned that startups spend as much as 40% of the funds they raise on Google &amp; Facebook ads. That is a lot. In other words, 40% of all VC money is going to those 2 companies. This is obviously going to reduce in the coming &hellip; <a href=\"https:\/\/hamad.blog\/2020\/03\/26\/customer-acquisition-during-recession\/\" class=\"more-link\">Continue reading<span class=\"screen-reader-text\"> &#8220;Customer Acquisition During Recession&#8221;<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_jetpack_memberships_contains_paid_content":false},"categories":[6],"tags":[143,144,22,377,495,119,494,323,75],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v22.4 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Customer Acquisition During Recession - Hamad Dar&#039;s Blog<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/hamad.blog\/2020\/03\/26\/customer-acquisition-during-recession\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Customer Acquisition During Recession - Hamad Dar&#039;s Blog\" \/>\n<meta property=\"og:description\" content=\"I saw an interesting video by Garry Tan where he mentioned that startups spend as much as 40% of the funds they raise on Google &amp; Facebook ads. That is a lot. In other words, 40% of all VC money is going to those 2 companies. This is obviously going to reduce in the coming &hellip; Continue reading &quot;Customer Acquisition During Recession&quot;\" \/>\n<meta property=\"og:url\" content=\"https:\/\/hamad.blog\/2020\/03\/26\/customer-acquisition-during-recession\/\" \/>\n<meta property=\"og:site_name\" content=\"Hamad Dar&#039;s Blog\" \/>\n<meta property=\"article:published_time\" content=\"2020-03-26T14:58:26+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2020-03-26T14:58:30+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/i0.wp.com\/hamad.blog\/wp-content\/uploads\/2020\/03\/Customer-Acquisition-During-Recession.jpg?fit=1200%2C600&ssl=1\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"600\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Hamad Dar\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:image\" content=\"https:\/\/i0.wp.com\/hamad.blog\/wp-content\/uploads\/2020\/03\/Customer-Acquisition-During-Recession.jpg?fit=1200%2C600&ssl=1\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Hamad Dar\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"1 minute\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/hamad.blog\/2020\/03\/26\/customer-acquisition-during-recession\/\",\"url\":\"https:\/\/hamad.blog\/2020\/03\/26\/customer-acquisition-during-recession\/\",\"name\":\"Customer Acquisition During Recession - Hamad Dar&#039;s Blog\",\"isPartOf\":{\"@id\":\"https:\/\/hamad.blog\/#website\"},\"datePublished\":\"2020-03-26T14:58:26+00:00\",\"dateModified\":\"2020-03-26T14:58:30+00:00\",\"author\":{\"@id\":\"https:\/\/hamad.blog\/#\/schema\/person\/f36b0f8f719077674dab8fa1e795b945\"},\"breadcrumb\":{\"@id\":\"https:\/\/hamad.blog\/2020\/03\/26\/customer-acquisition-during-recession\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/hamad.blog\/2020\/03\/26\/customer-acquisition-during-recession\/\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/hamad.blog\/2020\/03\/26\/customer-acquisition-during-recession\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/hamad.blog\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Customer Acquisition During Recession\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/hamad.blog\/#website\",\"url\":\"https:\/\/hamad.blog\/\",\"name\":\"Hamad Dar&#039;s Blog\",\"description\":\"Thoughts of a digital marketer\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/hamad.blog\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\/\/hamad.blog\/#\/schema\/person\/f36b0f8f719077674dab8fa1e795b945\",\"name\":\"Hamad Dar\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/hamad.blog\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/9a5fecda6fe60ce66c140d05002b5914?s=96&d=mm&r=g\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/9a5fecda6fe60ce66c140d05002b5914?s=96&d=mm&r=g\",\"caption\":\"Hamad Dar\"},\"url\":\"https:\/\/hamad.blog\/author\/njmvsfxhhg\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Customer Acquisition During Recession - Hamad Dar&#039;s Blog","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/hamad.blog\/2020\/03\/26\/customer-acquisition-during-recession\/","og_locale":"en_US","og_type":"article","og_title":"Customer Acquisition During Recession - Hamad Dar&#039;s Blog","og_description":"I saw an interesting video by Garry Tan where he mentioned that startups spend as much as 40% of the funds they raise on Google &amp; Facebook ads. That is a lot. In other words, 40% of all VC money is going to those 2 companies. This is obviously going to reduce in the coming &hellip; Continue reading \"Customer Acquisition During Recession\"","og_url":"https:\/\/hamad.blog\/2020\/03\/26\/customer-acquisition-during-recession\/","og_site_name":"Hamad Dar&#039;s Blog","article_published_time":"2020-03-26T14:58:26+00:00","article_modified_time":"2020-03-26T14:58:30+00:00","og_image":[{"width":1200,"height":600,"url":"https:\/\/i0.wp.com\/hamad.blog\/wp-content\/uploads\/2020\/03\/Customer-Acquisition-During-Recession.jpg?fit=1200%2C600&ssl=1","type":"image\/jpeg"}],"author":"Hamad Dar","twitter_card":"summary_large_image","twitter_image":"https:\/\/i0.wp.com\/hamad.blog\/wp-content\/uploads\/2020\/03\/Customer-Acquisition-During-Recession.jpg?fit=1200%2C600&ssl=1","twitter_misc":{"Written by":"Hamad Dar","Est. reading time":"1 minute"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/hamad.blog\/2020\/03\/26\/customer-acquisition-during-recession\/","url":"https:\/\/hamad.blog\/2020\/03\/26\/customer-acquisition-during-recession\/","name":"Customer Acquisition During Recession - Hamad Dar&#039;s Blog","isPartOf":{"@id":"https:\/\/hamad.blog\/#website"},"datePublished":"2020-03-26T14:58:26+00:00","dateModified":"2020-03-26T14:58:30+00:00","author":{"@id":"https:\/\/hamad.blog\/#\/schema\/person\/f36b0f8f719077674dab8fa1e795b945"},"breadcrumb":{"@id":"https:\/\/hamad.blog\/2020\/03\/26\/customer-acquisition-during-recession\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/hamad.blog\/2020\/03\/26\/customer-acquisition-during-recession\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/hamad.blog\/2020\/03\/26\/customer-acquisition-during-recession\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/hamad.blog\/"},{"@type":"ListItem","position":2,"name":"Customer Acquisition During Recession"}]},{"@type":"WebSite","@id":"https:\/\/hamad.blog\/#website","url":"https:\/\/hamad.blog\/","name":"Hamad Dar&#039;s Blog","description":"Thoughts of a digital marketer","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/hamad.blog\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/hamad.blog\/#\/schema\/person\/f36b0f8f719077674dab8fa1e795b945","name":"Hamad Dar","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/hamad.blog\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/9a5fecda6fe60ce66c140d05002b5914?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/9a5fecda6fe60ce66c140d05002b5914?s=96&d=mm&r=g","caption":"Hamad Dar"},"url":"https:\/\/hamad.blog\/author\/njmvsfxhhg\/"}]}},"jetpack_featured_media_url":"","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/hamad.blog\/wp-json\/wp\/v2\/posts\/2157"}],"collection":[{"href":"https:\/\/hamad.blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/hamad.blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/hamad.blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/hamad.blog\/wp-json\/wp\/v2\/comments?post=2157"}],"version-history":[{"count":0,"href":"https:\/\/hamad.blog\/wp-json\/wp\/v2\/posts\/2157\/revisions"}],"wp:attachment":[{"href":"https:\/\/hamad.blog\/wp-json\/wp\/v2\/media?parent=2157"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/hamad.blog\/wp-json\/wp\/v2\/categories?post=2157"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/hamad.blog\/wp-json\/wp\/v2\/tags?post=2157"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}