LV is the life time value of a customer
P is the average profit margin from each sale
F is the number of times a customer buys each year
N is the number of years customers stay with you
MC is the marketing cost per customer (total costs/number of customers)
Once you know how much you need to spend to attract a new customer, you will know how much of an incentive you can offer to a business to help attract new customers. So, here’s your step-by-step process:
Find companies who already have the customer base you are looking for.
.Negotiate an incentive for them to share that customer base with you.
Focus your marketing resources to this group of predisposed customers.
If you need help working through this process, please contact us and we’ll set you up with the most comprehensive system of marketing tools and resources.