Summary
I often see marketers fail because they don't fully understand the Lifetime Value (LTV) of their customers. Knowing your LTV can help guide how much you should spend to get new customers.
It's important to remember that the LTV can be different for each marketing channel. For instance, your customer LTV from Google might be $600, while from Instagram, it might only be $350.
Don't just use a single LTV number for all channels. Make sure to adjust based on each platform's performance to avoid problems in your marketing strategy.
Focus on increasing your LTV by encouraging repeat purchases. You could do this by sending more emails or introducing new products that fit well with your current offerings.
Understand why some customers don't return to buy more. Solving this can help improve their lifetime value and increase your overall revenue.
By boosting your LTV, you may be able to explore new marketing channels that you haven't tried before, which could further grow your business.
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How To Take Action
I would suggest you start by understanding the Lifetime Value (LTV) of your customers. It's important to know how much each customer is worth over their relationship with you. This will help decide how much you should spend on getting new customers.
A good way of doing this is to track customer behavior across different marketing platforms. Remember, LTV can change by channel. For example, customers from Google might be more valuable than those from Instagram. So, don't just use a single LTV for all channels, as it might cause marketing problems. Adjust your budget by considering each channel's performance.
Focus on increasing LTV by encouraging repeat purchases. Sending more emails with new product suggestions can help. This way, customers will keep coming back. It's also worth figuring out why some customers don't return after one purchase. Solving this issue can improve their lifetime value and your total revenue.
By boosting your LTV, you might be able to explore new marketing channels you've never tried before. This will help your business grow even more. Start with these strategies and soon you'll see great results for your business's future!
Full Transcript
the number one reason that I see marketers fail is not truly understanding the LTV marketers believe once you get a number of your lifetime value of your customer now I can spend up to $ X to acquire a customer what a lot of marketers get wrong is when you're optimizing your marketing per channel the lifetime value of your customer is a little bit different per Channel as well and marketers just take this arbitrary number if our LTV is $500 profitably we can spend $200 per Channel and your Google LTV was more like $600 and your Instagram LTV was like 350 you got a problem marketers also need to focus on maximizing the LTV in other words can you send more emails and get more repeat purchases can you figure out the number one reason people don't come back and buy your product can you figure out how to introduce new products and get them to buy more things within your ecosystem so that way they spend more money because if you can do a lot of those kind of things not only will your LTV go up it opens up usually in those cases new marketing channels that you haven't tested before
