Last Episode # 202 Best Time To Be a Small Business 📲

Stop playing the guessing game!!

Single Most Important Metric You Should Know As a Business Owner is…..

Cost Per Acquisition (Cost per acquired lead)

Source

First of all you should know and let’s say if you don’t how can you determine how much to spend on marketing?

How do you know how much should you spend to acquire that customer?

Let’s say that you are a Dental clinic and the lifetime net value of a customer is $1,000 so I can illustrate how to use this to back into your cost per acquisition thresh hold. Now, depending on the type of company, margins, and a few other factors, the general rule of thumb is to allocate on average, 15 percent of the customer lifetime value to acquisition cost.

This means for this example, we are willing to spend $150 to acquire a new customer from any marketing channel.

Another Example:

Let’s say that you are a Roofing company and the lifetime net value of a customer is $8000

Using the general rule of thumb is to allocate on average, 15 percent but you can take 5% of the customer lifetime value to acquisition cost. which will come down to: $400

You can start at $400 and overtime with optimization and tweaking the campaigns bring that cost down.

This will vary channel to channel and here is how you will get better at bringing this cost down. Example you will find when you start tracking it, you will get to compare the data among different channels. But if you don’t even know or if you are not tracking it then you are playing a guessing game.

Guide Method – Lead Generation Strategy

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Ali Salman

Ali Salman is an online marketing strategist who have worked with Coca-Cola, Extreme Pita, Mucho Burrito, KIA, Honda and other Fortune 500 companies. Ali Salman now heads Rapid Boost Marketing – Canada’s fastest growing search marketing agency. RBM clients include Fortune 500’s and medium size businesses across North America. Ali as RBM CMO leads his team in building and managing quality, high-performing and cost-effective interactive campaigns and programs for our company’s customers and partners. In his career, he has significantly improved campaign performance for large brands such as Government of Alberta, Liberal Party, Workopolis, Cathay Pacific, as well as medium to large retailers and high-tech B2B-enterprise niches.
Ali and his team develop online promotional concepts that spark viral growth through search and social media for RBM clients, devising strategies that use search engines and more to reach key demographic segments in the ways they’re most likely to be receptive. Ali Salman also oversees corporate marketing initiatives for Rapid Boost Marketing, including strategic communications counsel, public and analyst relations and client education programming.

http://www.rapidboostmarketing.com