How much should you spend to get new customers? When a deal or promotion opportunity comes your way that brings in new clients and grow your business, how do you figure out whether the deal will pay off?
Your gut feeling may have come through for you in the past. You let it dictate how much is just right, too much, or too little. What you think costs too much may end up bringing in more customers and profit than you expect.
Without knowing a client’s lifelong value, it’ll be impossible to determine whether an acquisition cost is too high or too low.