For a potential fintech acquisition target we assisted ABN Amro Ventures in evaluating the assumptions around customer acquisition and retention costs. RedSnap assessed the sustainability of their cost per signup and conversion ratio, as well as the reasonableness of their customer acquisition cost for funded accounts and their monthly retention rate.
On top of that, we analyzed the projected increase in cost per signup and its sustainability, as well as the feasibility of maintaining a high retention rate for a separate offering. Our analysis included reviewing historical data, validating their claims, and benchmarking against market data.