Or, look at how many hours you will have to spend writing to create content for your SEO keywords that will drive traffi
Posted: Sun Dec 15, 2024 8:15 am
Or, look at how many hours you will have to spend writing to create content for your SEO keywords that will drive traffic. C
Each of these acquisition factors adds dollars and cents to the cost of acquiring a single customer.
Photo: pixaba
Before you invest in competitive keywords that can be costly, we recommend that you instead focus on selling to your existing customers.
Why? Because the more existing customers come back and buy again, the more money your average customer brings you.
And you don't have to worry about spending thousands on campaigns. But what good is canadian healthcare and medical email list CPA without LTV?
It just doesn't work.
In other words, what is a reasonable cost per acquisition? Is it industry-based? Are there industry benchmarks to look at? What seems reasonable?
None of that works.
Here we tell you why:
All companies are totally different. Even if they sell the same products or services:
The business models are different.
Customers are different.
The strategies are different.
Which means that no two acquisition costs and customer lifetime values are identical in nature.
And simply comparing your CPA to standards means nothing.
The plain truth is:
How can you know what to spend on acquisition if you don't know customer lifetime value?
The answer? You can't.
Customer lifetime value is key because selling to existing customers is 5x cheaper. You already have the customers, so why are you spending tons and tons of money on acquisition?
Why are you turning on new inbound campaigns and pumping out outrageous amounts of money into free content in exchange for customer data ( lead magnets) and custom designed landing pages?
Now, make a simple equation :
Count up all of your existing customers and your total annual revenue from them. Add them up and divide by the total to find your average. That number is the average amount a single customer spends in a year.
While this isn't an exact way to calculate LTV, it's an estimate to give you a general idea.
Each of these acquisition factors adds dollars and cents to the cost of acquiring a single customer.
Photo: pixaba
Before you invest in competitive keywords that can be costly, we recommend that you instead focus on selling to your existing customers.
Why? Because the more existing customers come back and buy again, the more money your average customer brings you.
And you don't have to worry about spending thousands on campaigns. But what good is canadian healthcare and medical email list CPA without LTV?
It just doesn't work.
In other words, what is a reasonable cost per acquisition? Is it industry-based? Are there industry benchmarks to look at? What seems reasonable?
None of that works.
Here we tell you why:
All companies are totally different. Even if they sell the same products or services:
The business models are different.
Customers are different.
The strategies are different.
Which means that no two acquisition costs and customer lifetime values are identical in nature.
And simply comparing your CPA to standards means nothing.
The plain truth is:
How can you know what to spend on acquisition if you don't know customer lifetime value?
The answer? You can't.
Customer lifetime value is key because selling to existing customers is 5x cheaper. You already have the customers, so why are you spending tons and tons of money on acquisition?
Why are you turning on new inbound campaigns and pumping out outrageous amounts of money into free content in exchange for customer data ( lead magnets) and custom designed landing pages?
Now, make a simple equation :
Count up all of your existing customers and your total annual revenue from them. Add them up and divide by the total to find your average. That number is the average amount a single customer spends in a year.
While this isn't an exact way to calculate LTV, it's an estimate to give you a general idea.