April 17, 2017

Simple Metrics Tell Us What We Have To Do

There's a reason we need to forecast what happens to our business when customer acquisition tactics are not working.

Here's the first reason.

Here's the second reason.

I shared these two facts at a recent conference ... I then asked the audience to raise hands if they spent half or more of their marketing hours focused on customer acquisition strategy?
  • Maybe 10 of 200 hands were raised.
So that's a mistake ... the vast majority of us need to spend far more time focusing on customer acquisition than on customer loyalty. Because we do the exact opposite, we sub-optimize business performance. On purpose.

When you forecast what happens to your business over the course of the next five years, you know exactly what happens if you generate 59 new + reactivated buyers instead of 63 new + reactivated buyers.

You know what your annual repurchase rate is, don't you?

Of course you do!

And because you know this metric, you know exactly what you have to spend your time on, regardless whether you've run a five year forecast for your business or not.

"Forecasting outcomes are the sum of all analytics and marketing knowledge possessed by your company."

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