In the months before their Series C, Munchery acquired a large number of low-quality customers. While this doubled their customer base, revenue increased just 30%.
The impact on Munchery’s numbers was profound:
- Monthly revenue per customer dropped from $75 to $53
- Month-over-month retention dropped from 56% to 38%
Comparing the newly-acquired customers to prior cohorts:
- First-month spend dropped from $45 to less than $25
- One-month churn increased from 65% to nearly 80%
Check out Munchery’s latest numbers or see how other businesses are changing by requesting access to Second Measure.