>> Marcus:The Three Most Important Numbers
in Digital Marketing – Part 1 In this video I�m going to share with you
the first of the only three numbers you need to know in order to run a successful digital
marketing campaign�. This one is by far the most important for all businesses. What�s your cost-per-acquisition? In other
words, how much are you willing to pay for a customer? In my option this is the most important number
for businesses to know when looking at sales and marketing activities � because it determines
what is viable and what is not.
Yet, it is surprising how many businesses
owners don�t know this. This is especially true among start-ups. I was recently asked to speak with University
students who were part of a business start-up scheme. They were going to practice their
pitch on me before they went in-front of VCs. Some of them had interesting ideas, but none
of them knew what their CPA was. When I asked them how much were they willing
to pay for a customer, and they we�re sure.
Their business professors had not mentioned
including it in their business plan. Which I found shocking. At Fountain, we will pay �500 for new customer.
Whenever we run digital campaigns, go to networking events or get me on the stage – we work out
the cost to the business and calculate what the bare minimum of new customers required. The figure of �500 allows us to be creative
with referrals as well. From giving someone �500 in cash for a referral that comes in
as a sale to renting them a Ferrari for a weekend � it depends on who it is.
So I�d like you to take a moment and think
about what your CPA is: How much are you willing to eat into your
profits margins for a sale? It will vary for different products and services,
of course. I appreciate it depends on the size of the
customer, so let�s start with the max you can spend to acquire one of your smallest
customers. Have you got it? Even a ballpark figure at
this stage is a good start.
One you get this number it will be the bedrock
of all of your sales and marketing..