Get Customers Cheap - Sales Influence Podcast - SIP 602

<h3>Business Viability Formula</h3> <ol> <li>Customer acquisition cost must be lower than lifetime value to ensure business success—this single equation determines whether a company will survive or fail according to Kevin O'Leary from Shark Tank.<br /> <br /></li> <li>8 out of 10 businesses fail within the first 36 months primarily because they spend more on client acquisition than the return on investment they receive from those clients.</li> </ol> <h3>Customer Economics Calculation</h3> <ol> <li>Calculate lifetime value by analyzing purchase frequency and average order value over a defined period like 3 years—for example, a customer spending an average of $20,000 over 3 years represents their total lifetime value.<br /> <br /></li> <li>Over 90% of people cannot calculate their customer acquisition cost, yet knowing this metric and comparing it to lifetime value is essential for creating an effective marketing strategy.</li> </ol> <h3>Growth Strategy</h3> <ol> <li>Reduce customer acqu...