How to determine if your advertising is making or losing money
There is a simple way to determine if your advertising is making or losing you money. Follow this proven formula to increase your business profits with each customer you acquire.
There is a simple formula to determine if your advertising is making or losing you money.
When you use this proven formula, you are able to increase your company’s profitability with each customer you acquire.
Surprisingly, many businesses overlook this valuable method.
Is it too hard? No. Does it cost money? No.
Often, the problem is that local businesses are too busy to pay attention to these important numbers.
Part 1 of the Profitability Equation
The number we want to explore today is called “The Average Lifetime Customer Value.” It is the first half of a powerful equation you will want to know.
If you know this number (and equally as important... what goes into it), you are armed to make intelligent decisions on—
- How much you are willing to spend to acquire this customer
- Which customers are not worth fooling with... and which are
- How you can increase the profit you make on each customer.
Quick Tip: A customer can be worth more to you than just how much they spend with you. More on this in a moment.
Let Me Show You How This Works
Watch the brief video below that explains—
1. The concept of Average Lifetime Customer Value
2. What components go into this number
3. How to determine this number
4. How knowing this number gives you a decided advantage in the marketplace.
When you watch the video, you might just conclude, “Why aren’t we doing this? Or doing it consistently?”
The video is a visual explanation of an important concept found on p. 8 of the 15 Proven Ways To Grow Your Business. Click on the link to download your free copy today.
With this number, you can make informed decisions, leading to greater profitability with each customer.
Without it, you are destined to stay busy, busy, busy... but have very little profitability to show for it.
Do you really want that?
The Second Part to the Profitability Equation
There is a second part to this profit equation—your customer acquisition cost.
This is an equally powerful number to know. If you use this number in combination with your average lifetime customer value number, you can compete more effectively with even some of the biggest companies in your industry.
----> Read more here on how to determine (and control) your customer acquisition cost.
Both these concepts are explained in more detail in the 15 Proven Ways To Grow Your Business. Click on the link to download your free copy today.
