Customer acquisition calculator create a profitable
strategy for your business. Part one of two. Now guys, this is a two part video series. Uh, you really should go watch part two. I'll have a link in the description below,
so you can go over and do that, but we're gonna talk about getting customers. If you want to get more customers, whether
you're selling digital products, physical products, services, it doesn't matter. You're gonna wanna watch this video to the
very end. I also have a course at $97 course, absolutely
free. And I'll tell you how to get that too. Now, whether you are trying to get your first
10 customers or you're trying to get your 10 thousands customer, customer acquisition
is always gonna be a thing. It's something you're always gonna need to
work on.
Now. It shouldn't be a product of, you know, well,
I've got 10 more customers. Um, this month, I don't know where they came
from, but I got 10 more customers. It should actually be a process. It should be actually something that you're
working towards. Not just, you know, I got more customers. I just don't know where they came from. You should know where they come from. You should actively be going out and getting
'em. And in this video, I wanna show you exactly
how to do that. Okay. I wanna put a graphic up on the screen so
you can kind of see, you know, where they come from first off. Okay. So the first part, your leads, um, you can
see they come from awareness and interest. Okay? So, uh, they become aware of you through a
video or through an ad, or they was surfer on the internet or whatever it is. And then they develop some interest. The next stage of this is called consideration,
uh, consideration is they're like, yeah, okay. I've heard about this company. You know, maybe they're for me, I think I'm
gonna do a little bit more research on them.
I think I'm gonna look at some of their products. Um, that's where they get into intent. They're actually intent on possibly doing
business with you. Uh, and then they evaluate what you've got. You know, they maybe read your descriptions,
they look at your products, they look at your reviews, um, and they evaluate it. And then it comes right down to the actual
purchase of the product and they become customers. So you can see their leads, prospects, and
then customers now, as we're acquiring customers, especially for running ads, um, that's all
a lot easier. Do we have, what's called a CAC or customer
acquisition cost. How much does it actually cost you to get
a customer? Um, let's take, for example, uh, you run ads
on Instagram and on Instagram, let's say you spend, I don't know, $500 a month, uh, on
creating whatever content you're gonna create eight or running ads or whatever it is. And you get 50 customers out of that. So your customer acquisition cost was $10
per customer.
Okay. So 10 times 50 gives you 500, which is exactly
what you spent. Now. We need to look at this because we wanna make
sure our customer acquisition cost is going to be profitable. Let me give you an example. Let's say that you acquire a customer and
that customer's average spend, okay? You gotta look at average somewhere, gonna
be higher. Some are gonna be lower, but let's say it's
$50. Now we take that $50 and we say, well, how
much of that is profit? And we say, well, 50% of that $50 normally
is profit. So that leads me $25 profit. Now, if my customer acquisition cost was $10
per customer, like I just said, I spent $500 and I got 50 customers that gave me a customer
acquisition, cost of $10. And my profit when they do buy is 25 bucks. I've got, have tracked out that customer acquisition
cost to come to a profit of $15. I hope that makes sense. Okay. So I've got $25 profit minus the $10 customer
acquisition cost.
My profit is now $15 on that product. Now, in some cases you wanna look at your
lifetime value over customer, okay? That is LT EV lifetime value of the customer. And the reason you wanna do that is because
once you get positioned, once you have a little bit of money, um, you, you will probably spend
more for that customer than you will make profit on their first sale. But you may realize that on down the road,
the average customer's gonna spend X number dollars. Like we know the average customer at survival
food company is gonna spend several hundred dollars. So if we run an ad, if we do customer acquisition
and we gain a customer and we lose $50 or a hundred dollars, it's not a big deal because
we know they're gonna spend several hundred dollars over the lifetime of that particular
customer.
Now you do have to have the money to build
up that audience, right. But you know, you're gonna get it back because
they do repeat purchases. And that's how we look at it. Now, what I'd like to do is just put some
averages up on the screen. This certainly is not accurate, but it's an
average for each industry. So let's check it out. Uh, we've got arts and entertainment. Customer acquisition cost is $21 on average
business and industrial check that out $533 clothing shoes and or accessories, $129 electronics
and or electronics. Accessories is $377 food beverage and tobacco
products is $462. Wow. I would never would've thought that, uh, health
and beauty is $127 home. And garden is one 20.
It looks like arts and entertainment is the
way to go, right? Because it's so low. But what is the profit margin on arts and
entertainment? I mean, let's say a movie theater is arts
and entertainment. You know, somebody's only spend 15 or $20
to go to a movie. So you're not gonna make a whole lot money
back. But some of the business things that you do,
and some of the courses you could sell that can be quite profitable because that's the
area that we're in.
So you've got this budget and you wanna acquire
some customers, but you're not sure where to put the money. Let's look at some of the things you can do. The first thing is paid advertising. Okay. You can certainly do paid advertising where
you actually run an ad. You run it on Facebook, you run it on Google,
you run it on YouTube, but that's the first way of doing it. The set way is influencer advertising. Okay? Influencer advertising is where you find somebody
that matches up with your brand and they talk about it. They sample it. They demonstrate it. Influencers nowadays can be vastly helpful
because they have influence, okay. They have an audience, people that follow
'em and listen to 'em and buy products.
If you were to just put your product out on
TV, okay, let's say you're gonna put it on TV. Um, it's gonna go out to everybody. Okay. It doesn't go out to a specific group of people. So, you know, even television and radio for
years has been using influencers. They'll use celebrities, right? They use sports figures. They know that the value of having an influencer
is incredibly helpful when you're selling a product. The next thing is one of my favorites. I love it. And that's email, email marketing. Okay. I can send out an email and I know I'm gonna
make money within hours. When I send out an email, because I've already
built my own audience in the beginning, you won't have your own audio audience, but that
doesn't mean you shouldn't start sending out emails to whoever you have.
Okay. The audience will build. Um, you can also use referral programs. Uh, I use referral programs. I think that's a good way to get more customers
in the door, too, uh, referral programs and where you pay somebody else to bring you customers
works great. Number five is traditional advertising. Traditional advertising would be newspaper,
radio, television, that type of thing. That's one way to get your product out, but
understand you can't target it very well on those medias, but it is a way to advertise. And you, if you ever check into it late night,
ads on TV are very, very inexpensive. Number six is search engine optimization. Um, I do spend money on this. I work on this myself. Um, it, it's, it's a hard thing to wrap your
hands around because there's so much to do, but it's very, very important because when
people search online, you're basically getting free customers.
If you can rank your web pages, number seven. And I kind of touched upon this when I said
email marketing, but audience building, okay, how are you gonna build your audience? I spend money out there to, um, run ads, to
give people free downloads on how to protect their home and family. I know those people are concerned about protecting
their family, which they may also be concerned about having survival food, which is what
we sell.
So you can spend money and build your audience
and build up that bank of people that you have to market to. Once you've built that list, the next thing
is content marketing. Uh, I'm actually doing content marketing right
now. I'm doing free content. I'm talking to you guys, I'm sharing with
you ways that you can make money. Uh, and that's content marketing because you're
gonna hear me talk and you're gonna say, well, that makes sense. I like that. What else does he have? I do have courses, right? I have training. I have memberships that people can buy into
and learn more and more about this. Feel free to do so if you wanna check out
some of that stuff, there's links below.
Um, but that's content marketing. Um, I could also write blogs. I could write articles. They don't all have to be videos. All of those things are content marketing,
things that help people out where they can click and maybe buy your product, click and
learn more about your company after they've consumed that content. It works very well. Now I'd like to put another graphic on the
screen, uh, and it has to do with areas that people trust.
So let's check it out right now. Um, this particular one, um, there's a question
asked, uh, in general, which type of advertising channels do you trust more when you wanna
make a purchase? The first one up there is print ads in newspapers
and magazines, and then there's TV ads and then there's ads and catalogs. And as you can see, it really drops down. You know, ads and podcasts are way at the
bottom, but keep in mind ads and podcasts haven't even existed, uh, up until just recently,
uh, online popups don't do as well. Uh, but you can see all the different places
there and you can also see that search engine stuff is right in the middle. Now it's really, really grown where it didn't
even exist before. Now, keep in mind. Some of these things don't work as well as
they should, because there are things that prevent it now, like a lot of popup ads, um,
people can block now.
So they won't see those ads anymore. A lot of people are desensitized to a lot
of the ads that are out there because they see so much online. Um, so that's why I like to do email marketing. That's why I like to build my list. That's why I like to put content out there. That's why I've put over a love than hundred
videos on this channel. Yeah. Check it out. 1100 videos on this channel. Uh, at the time that I'm recording this, I
don't how many it'll be by the time, uh, you watch this video, but bottom line is I like
to give before I take. And I think that that is a really good rule
of thumb when you're really trying to build your audience and video two, I'm gonna go
over some more ways that you can market your company and really get good results.
So that's it for this video. I hope you got something out of it. I wanna go into more detail and video too,
and I think that's gonna open up some more opportunities for you is gonna probably open
up your imagination too. So you'll want to check that out. There is gonna be a link below for video two
in this series. I want to thank you so much for watching this
video. If you haven't subscribe. Yeah, please do so. Hit that subscribe button below, turn it from
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Thanks so much for watching this video and
I'll see you in the next one..
