What Is Customer Lifetime Value?

from Google Ads Like A Boss · host Uzair Kharawala

The No.1 Google Ads Coaching and Training Program. Watch Masterclass here: https://sfdigital.co/youtube Maintaining a good customer lifetime value is crucial for any successful business. Learn what is customer lifetime value, calculation, and strategies to improve So and this is why you know the customer lifetime value what you just mentioned is that they don't understand it's not the eleven bucks they are selling for is the how many transactions they're going to get recurring for the next few years. Yeah, you gotta know your numbers. When I encounter entrepreneurs I don't know the numbers in my mind I'm like you can't run paid ads. You don't know you know and it's not just eCommerce if you think about lead generation to take a step back. Yeah. You need to know what a client is worth to you long-term net profit because if you're, if you're banking on gross, then, you're in the dangerous territory there too, and then, once you know that, you need to know how many leads you close, you need to know what a lead, what you can pay for a lead, and if you don't know those things, then you have no idea if your marketing is efficient. I've had clients that bulk it like, you know, $400, $500, $600 leads but when I do the math for them, I'm like, this is not only efficient but what you have to pay because this is what all your competitors are paying. There's no way to pay any less. Yeah. It’s an interesting conundrum to see been really smart like really vetted tenured business owners that don't know their numbers. Yeah. Blows me away every time. Yeah, I know and there are some very big businesses who are flying blind. Yeah. Yeah. I have a close friend who's also a mentor in a different capacity and he laughs at it. You know, he's got a  $30 million business and his self-deprecating joke is looking, I put money in, more money comes out and I'm happy as long as that's happening and I'm just like, no, he's super old school but I'm like, dude, you can't, you know, just don't teach anybody that.

Episode metadata supplied by the publisher feed · Published Oct 30, 2021

What this episode covers

The No.1 Google Ads Coaching and Training Program. Watch Masterclass here: https://sfdigital.co/youtube Maintaining a good customer lifetime value is crucial for any successful business. Learn what is customer lifetime value, calculation, and strategies to improve So and this is why you know the customer lifetime value what you just mentioned is that they don't understand it's not the eleven bucks they are selling for is the how many transactions they're going to get recurring for the next few years. Yeah, you gotta know your numbers. When I encounter entrepreneurs I don't know the numbers in my mind I'm like you can't run paid ads. You don't know you know and it's not just eCommerce if you think about lead generation to take a step back. Yeah. You need to know what a client is worth to you long-term net profit because if you're, if you're banking on gross, then, you're in the dangerous territory there too, and then, once you know that, you need to know how many leads you close, you need to know what a lead, what you can pay for a lead, and if you don't know those things, then you have no idea if your marketing is efficient. I've had clients that bulk it like, you know, $400, $500, $600 leads but when I do the math for them, I'm like, this is not only efficient but what you have to pay because this is what all your competitors are paying. There's no way to pay any less. Yeah. It’s an interesting conundrum to see been really smart like really vetted tenured business owners that don't know their numbers. Yeah. Blows me away every time. Yeah, I know and there are some very big businesses who are flying blind. Yeah. Yeah. I have a close friend who's also a mentor in a different capacity and he laughs at it. You know, he's got a $30 million business and his self-deprecating joke is looking, I put money in, more money comes out and I'm happy as long as that's happening and I'm just like, no, he's super old school but I'm like, dude, you can't, you know, just don't teach anybody that.

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