The Ultimate Guide to Finding Your Best Customers and Most Profitable Traffic Sources
Posted: Wed Dec 04, 2024 10:48 am
Would it be great to be able to see your customer’s exact lifetime value (LTV) based on the traffic source or marketing channel that brought them to your website and converted them into a customer?
For example, let's say we know that people who sign up to our partner network through an email campaign have a CV of $100, and those who sign up through our Facebook ads have a CV of $50.
It would be nice to have that information, right?
Let’s take it a step further and say you spend $60 on acquiring a customer on Facebook, but only $10 on acquiring them via email. Even though the average lifetime customer value in list of barbados consumer email these two categories combined is $75 ($50 + $100 / 2 = $75), you’re overspending on Facebook customer acquisition and potentially missing out on email opportunities.
Do you realize that this type of information can change the way you market and promote your business? Once you know that people who come to you via email are worth twice as much as those who sign up through Facebook, it will make a lot of sense to double down on the most effective and canal de comercialización rentable .
By now, you're probably thinking, "Can't I get this information from Google Analytics or my advertising platform?"
If you only sell one-time payment products and only care about the value of the initial sale, then the answer is basically yes. On the other hand, if you sell a membership where you're going to collect payments on a recurring basis (monthly, quarterly, etc.) or you want to track a customer's LCV over time (after the initial sale happens), then the answer is no.
With a recurring revenue business model, you get paid on an ongoing basis. The initial sale is the start of a (hopefully) long-term relationship that will lead to many ongoing payments. Therefore, someone who stays with you for 12 months will have a significantly higher VCL than a member who pays you for one month and then churns.
For example, let's say we know that people who sign up to our partner network through an email campaign have a CV of $100, and those who sign up through our Facebook ads have a CV of $50.
It would be nice to have that information, right?
Let’s take it a step further and say you spend $60 on acquiring a customer on Facebook, but only $10 on acquiring them via email. Even though the average lifetime customer value in list of barbados consumer email these two categories combined is $75 ($50 + $100 / 2 = $75), you’re overspending on Facebook customer acquisition and potentially missing out on email opportunities.
Do you realize that this type of information can change the way you market and promote your business? Once you know that people who come to you via email are worth twice as much as those who sign up through Facebook, it will make a lot of sense to double down on the most effective and canal de comercialización rentable .
By now, you're probably thinking, "Can't I get this information from Google Analytics or my advertising platform?"
If you only sell one-time payment products and only care about the value of the initial sale, then the answer is basically yes. On the other hand, if you sell a membership where you're going to collect payments on a recurring basis (monthly, quarterly, etc.) or you want to track a customer's LCV over time (after the initial sale happens), then the answer is no.
With a recurring revenue business model, you get paid on an ongoing basis. The initial sale is the start of a (hopefully) long-term relationship that will lead to many ongoing payments. Therefore, someone who stays with you for 12 months will have a significantly higher VCL than a member who pays you for one month and then churns.