Channel Eye has joined forces with Royston Guest, leading Business Growth Coach and CEO/Founder of Pathways Global, in our column, ‘Ask the Business Coach’
How much of my revenue should I spend on marketing is the wrong question. The right question is ‘what is a new customer worth to us?’.
- Know the lifetime value of a customer
- Know the payback period of a new customer
- Know how much you’re prepared to pay to acquire a new customer
- [1.17] When you understand the lifetime value of a customer and how much they are worth to you in years 1, 2, and beyond.
- [2.35] When you understand the lifetime value, you can begin to determine the payback period of your acquisition costs.
- [2.52] When you understand the lifetime value of a customer and know the payback period of your acquisition costs, only then can you think about what you are prepared to pay to acquire that new customer.
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