Acquisition Cost of Clients - A better ROI than any bank

Join Brad as he breaks down the acquisition cost of clients in a simple and easy-to-understand manner. From understanding the lifetime value of customers to improving conversion rates, this video offers valuable insights for businesses of all sizes. Hit subscribe to stay updated on the latest tips and tricks for maximizing your marketing efforts!
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00:00 Introduction
00:24 Number 1 rule of marketing
00:41 A real life example

[@preshitkarandikar9808]

Hi Brad, in the video, you mentioned that, "if the sales and marketing process was better, then we would close 25 sales and hence the acquisition cost would drop to $40 per acquired customer. You went on to say how that is like basically investing $40 for a return of $1500 per customer."
Just wanted to clarify, that in order to analyse whether the business in your example is a profitable business or not, we would also have to also take into consideration other costs associated with providing the service/ manufacturing the product etc, against the $1500 figure, right? $40 in acquiring a customer is just a part of the various costs associated with the lifetime value. Right?

[@bradflynnofficial]

Hi Preshit, sorry for the delay in getting back. I would suggest analysing the campaign on its own and leave out the other elements. The reason being that our fixed expenses we incur anyway, regardless of the campaign. The 2 markers that we use in this example are the acquisition cost (considered in isolation) and lifetime value which is a reflection of the business at some level. I would be more interested in the profitability of the company as a separate figure, firstly is GP in alignment with the rest of the industry and second is operating profit (EBITDA) ok. If those 2 are not, then dig into the specifics of why they are not, hope that helps.