…transaction size so that the product becomes more compelling for the demand side. Liquidity is key. Making sure that transaction volume is thriving is more important to a new marketplace than getting the largest revenue per transaction.
-Increases in ACV aren’t free. Usually in order to increase ACV, it means some other metric of importance gets worse, for instance the sales cycle gets longer, the close ratio comes down, and the number of leads needed to complete a sale increases. In order to achieve higher ACV’s, you have to focus on larger clients which inevitably means more layers of management to achieve an approval, more time required to identify the decision maker, more layers of bureaucracy to fight through, etc.