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The key to unlocking profits when marketing your business
Manage episode 404882608 series 3498357
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Are you struggling with generating revenue?
Do you understand the metrics behind profitability? Knowing your customer acquisition cost vs the lifetime value of that customer will help you understand the path to profits.
It'll also help you learn whether a campaign is doomed from the beginning.
The CAC to LTV ratio changes based on the industry. We'll break down 3 examples.
1. Businesses with a good chance of repeat purchases.
2. Business with a high chance of repeat purchases.
3. Business with a low or no chance of repeat businesses.
Understanding which category you fall into, will help you understand how the CAC vs LTV ratio applies to you, and how that impacts your strategy.
If you want to watch this episode on YouTube so you see the charts and visuals you can do so here:
https://youtu.be/M8NYyPxkx7c?si=zHDEVfyF2MxQ88yr
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