The Metric That’s More Important Than Customer Acquisition Costs

In episode #2486, Neil and Eric do a deep dive into the metric that’s more important than customer acquisition costs! This episode was inspired by a blog post by Elena Verna and in it you will hear why it is more important to focus on the lifetime value and the payback period of your customers than your customer acquisition costs. TIME-STAMPED SHOW NOTES: [00:00] Today’s topic: The Metric That’s More Important Than Customer Acquisition Costs. [00:18] The importance of understanding your Customer Lifetime Value (LTV). [00:47] The blog post by Elena Verna inspired today’s episode. [01:17] An example that highlights the problem with focusing only on customer acquisition (CAC). [02:45] The benefits of looking at LTV per channel. [03:20] Why the length of your payback period matters more when your business is just starting out. [03:50] Understanding the paid marketing loop. [04:21] What does the payback period metric measure? [05:06] Key takeaways from today’s episode! [05:51] How losing money in the short term can benefit your business in the long run. [07:10] How to optimize your payback period. [09:01] That’s it for today! Don’t forget to rate, review, and subscribe! Go to https://www.marketingschool.io to learn more! Links Mentioned in Today’s Episode: Elena Verna Cost of Acquisition (CAC) trap Microsoft Microsoft Clarity Timothy Sykes Don’t forget to help us grow by subscribing and liking on YouTube! Leave Some Feedback: What should we talk about next? Please let us know in the comments below Did you enjoy this episode? If so, please leave a short review. Connect with Us: Single Grain << Eric’s ad agency NP Digital << Neil’s ad agency Twitter @neilpatel Twitter @ericosiu Learn more about your ad choices. Visit megaphone.fm/adchoices See omnystudio.com/listener for privacy information.