When they cost more to serve than they bring in, customer switching cost is vanishingly low, your competitor has revenue from other things and you don't.
> When they cost more to serve than they bring in, customer switching cost is vanishingly low, your competitor has revenue from other things and you don't.
What? "Other things"? This is really vague. Who says competitors have lower CAC? It's rather likely competitors pay more for a new customer, due to, very simply, brand.
When they cost more to serve than they bring in, customer switching cost is vanishingly low, your competitor has revenue from other things and you don't.