person walking down the street looks just like the type of person who buys from
you. On an average sale, you have a $50 gross profit. Would you hand
that person $5 to buy from you?
Knowing that the average customer will purchase 2 additional times over the next
12 months, and your combined gross profit on the three purchases will be $150, would you
pay more than $5 to convince that person to make the first purchase?
The answer to both questions, generally, should be "Yes!"
SOME DMG SUCCESSES
A $10M e-retailer had a triple-digit CPA. We drove it down to under $40 in 6 months.
A small e-retailer had a PPC CPA of $93. We drove it down to $10.45 in just a few months.
Do you know how much you should be investing to acquire each new customer given your
specific business metrics? Do you know how to drive down that investment amount,
creating even larger returns for you?