Mistakes Made in Marketing Math by Small Business Marketers

More sales do not always mean more profit. A local business can run a sale, bring in more customers, and still make less money than before. The problem is not always the marketing. It is the math behind the marketing. In this episode of Mastering Local Marketing, we break down how discounts, ad spend, low-margin products, giveaways, and average order value can quietly turn a "successful" campaign into a profit problem. Before your next promotion, advertising campaign, or potential customer walks through the door, make sure the numbers actually work. Formulas to Know Customer Acquisition Cost (CAC) = Sales and Marketing Expenses/Number of New Customers Acquired Life Time Value (LTV) =  Average Revenue Per Account x Gross Margin/Churn Rate Average Order Value (AOV) = Total Revenue/Number of Orders Placed   30-MINUTE FREE CONSULTATION WITH MATT Every month, Matt selects one email subscriber for a 30-minute virtual discussion to go over their marketing efforts and provide recommendations. Subscribe and you might be next. 
 HAVE A SHOW IDEA? Do you have an interesting idea for a show topic or a marketing problem that you'd like us to cover in a future episode of Mastering Local Marketing? Email [email protected] and we'll add it to our future episodes. 
 Mastering Local Marketing is the small business marketing podcast focused on simple, proven marketing tactics, digital marketing, and local advertising strategies that help small businesses grow. Whether you own a retail store, restaurant, service business, or manage marketing on your own, this podcast teaches you how to use marketing tactics to increase awareness, generate leads, and improve customer acquisition. Each week, marketing expert Matt Hanson breaks down real-world marketing tactics small businesses can use to improve digital marketing performance, maximize local advertising strategies, and turn visibility into paying customers. You will learn how to use social media marketing, local outreach, and practical digital marketing tactics to drive traffic, boost engagement, and accelerate business growth. This podcast is built for small business owners who want actionable marketing tactics, not theory. Every episode delivers clear, easy-to-implement tactics designed to increase local visibility, improve customer acquisition, and help your business grow. If you are ready to grow your small business using smarter marketing tactics, digital marketing, and local advertising strategies, this is the podcast for you. Listen, subscribe, and start turning marketing tactics into real business growth.