Very well articulated Scott. Continuous sticky income is worth the wait at the decision stage and as you point out, they are brilliant advocates for additional services and other quasi allied organisations. One needs to focus on the ‘lifetime value of the client + their referral ability’ when analysing costs of client acquisition. Not many investors take this compounding effect into account. And f course, it works in reverse, goodwill can very easily become bad will.
Very well articulated Scott. Continuous sticky income is worth the wait at the decision stage and as you point out, they are brilliant advocates for additional services and other quasi allied organisations. One needs to focus on the ‘lifetime value of the client + their referral ability’ when analysing costs of client acquisition. Not many investors take this compounding effect into account. And f course, it works in reverse, goodwill can very easily become bad will.
Nice write-up. Worth digging further into this one I think.