Customer Customer: Why do the LTV economic plans need to be # 1 k

For a long time, businesses have been busy with the wrong numbers. They chase the cost of finding customers (CAC) as a sacred, sacred, believed that the CAC’s downloading of the CAC’s download is required to gain value. But this is real – if you are looking at the CAC without disturbing customers’ value (LTV), you need a big picture. In the fields of today’s competition, LTV economy should be # 1 kpi because it makes the benefit of your company, settle, and reproduction.

CAC trap: why is the cheapest not the same

I’m trying to look at pills, especially when the advertisement is tight. Businesses throw money to pay for paying, audience, as well as the media of the media, we want to drive a low cost. But what happens?

The cheapest finding does not mean a thing if the customer does not return. Many companies are encouraged to be early without thinking about keeping. It’s a reblogged price – The meta’s CPM rose up with 18% Most Year of Year 2023 – to find a single-time buyer on a razor of a razor (or even to lose) with a dangerous sport.

Companies that succeed? They understand that CAC with only half equal – with a relationship between CACs and LTV that selects the value.

LTV: Metrics that need

The Customer Tree of Customer (Ltv) tests all the clients that clients make up in their whole relationship with your nationality. LTV long LTV means that customers continue to return, spend a lot of money, and comfort. The lowest lower means to search for new customers to get closer.

Here’s the reason LTV is the most important kpi auction:

• It drives the unstable size: To keep customers added money – Education Increased customers of 5% of the 5% of the benefit of the benefit is 25% to 95%.
• It chacts: If you use $ 50 to get a customer who lives $ 60 once, you don’t break a little break. But if they have used $ 60 per month for the next two years, your CAC is invalid.
• Allows to get harsh. LTV LTV gives you confidence to be able to advertise, competitors, and find the market part of the market.

Formula: How to keep the CAC & LTV a beneficial

The simpler rule of finger and LTV to CAC Raijo, which tries the way you use and save customers.

• LTV / CAC RATA for 1: 1: You are burning money – Customer does not grow around enough enough to get the required money.
• LTV / CAC READIO 3: 1: Good value. On any $ 1 used as you, you are making $ 3 back.
• LTV / CAC RUIO OF 5: 1 or more: You may not be enough to grow. If your customers are valuable and your lows are very low, you’re leaving money on the table.

According to 2024 MCKINY reportThe active companies look at the customer’s price by converting early and has a LTV / CAC / CAC / CAC / CAC / CAC / CAC / CAC / CAC / CAC / CAC / CAC / CAC / CAC / CAC / CAC / CAC / CAC.

How to add LTV (not adding caC)

Now that we have established LTV as a very difficult metric, the real question is: How do you make it?

1. To keep> to find

Many businesses look at 80% of their work budget and 20% in reservation. Holiyyyyyyyyz. Desture money, your offerings, and the relationship by sending a return.

Example: Payments for salary salary of 53% of its products by repeat to buy.

2. Create a registered type or membership

Groups of repeated colors (I think Amazon Prime, Dollar Shave Club, or peloton) should not be able to buy again. They close the relationships that spend a lot of time, making sure that LTV is high with a specified money.

Example: Amazon Members Use $ 1,400 per year compared to $ 600 for non-members.

3. Increases Aov (the average value)

Through, through, and the bundles can add more money. If your customers spend $ 50 on the system, give a Premium or “buy more, save more to make it up to $ 75 or $ 100.

Example: McDonald’s added $ 200m in Revenue From one UPSELL: “Would you like ries and this?”

4 .. Apply SMS & E-mail to advertise

If you don’t use the annels with annels to make customers, you will continue to sell everything. E-mail and SMS to the most powerful ads for any sidewalks – an email only makes $ 42 on each $ 1.

5. Change customers to be supporter

Shipment is a cheapest way to raise. If each customer will also bring back one, your CC is cut in half. Roll the motivation to help, encourage UGC (The documents made) And create a regular group.

Example: Tesla costs $ 0 on advertising, trust 80% shipping.

To put the benefits in a nonsense metal

Chasing the Back CAC and play for a while. To look at the LTV economy causes the value of a long time. The next in the next category does not have low-cost ads, will be with the most important customer.

So, before you try to bring new customers, ask yourself: Are we going to develop the value of those we already have? Because that’s where the real value is sleeping.