How much should you typically allocate to your marketing budget if you want to be successful?
The first thing you need to explore in answer to this question is the Lifetime Value (LTV) of one of your customers, versus the cost of acquiring a new one.
On average, a customer may spend a £1,000 per month with you for 5 years. If you make 50% of that revenue as profit, the LTV of this customer is:
🔢 £1,000 & 60 (months) x 50% = £30,000.
So, how much are you prepared to spend to find another customer like this? ⬆️
Lifetime value makes you think doesn’t it?
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