Instead of targeting competitive keywords that can generate significant costs, we recommend focusing on selling to your existing customers.
Why? Because the more existing customers return and buy again, the more money your average customer brings in.
And you don't have to worry about spending thousands on campaigns. But what good is CPA without LTV?
It just doesn't work.
In other words, what is a reasonable cost per acquisition? Is it industry- fax lists based? Are there industry benchmarks to analyze? What seems reasonable?
None of that works.
Here we tell you why:
All businesses are completely different. Even if they sell the same products or services:
Customers are different.
The strategies are different.
Which means that no two acquisition costs and customer lifetime values are identical in nature.
And simply comparing your CPA to standards doesn't mean anything.
The pure truth is:
How can you know what to spend on acquisition if you don't know the customer lifetime value?