How much will
you be willing to spend to get a new customer?
-
The higher the lifetime value,
the higher you can spend
-
You can spend like A LOT to
acquire a customer, and that would be a GREAT financial decision on the long
run
-
On the initial sale you will
be definitely losing money (= going negative). But the thing here is that your
customers by buying from you, they would be singing up for a 'continuity'
program
- An important note here:
You have to
keep them for the speculated lifetime with them for the acquisition cost to be
worth it, or else it wouldn't be worth it
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