July 01, 2018

Investment Window

Let's run a little simulation, ok?

Let's say that you can acquire customers in 100,000 customer chunks. Your profit per new customer is as follows:
  • Best Sources = $10 profit per new customer.
  • Good Sources = $0 profit per new customer.
  • Average Sources = -$10 profit per new customer.
  • Below-Average Sources = -$20 profit per new customer.
  • Poor Sources = -$30 profit per new customer.
Let's also say that each new customer pays you back a specific amount of profit per year.
  • 1st Year after 1st Purchase = $20 profit.
  • 2nd Year after 1st Purchase = $14 profit.
  • 3rd Year after 1st Purchase = $10 profit.
  • 4th Year after 1st Purchase = $7 profit.
  • 5th Year after 1st Purchase = $5 profit.
What is the "right" new customer acquisition strategy to maximize the potential of your business?

Do your homework, and we'll look at possible results tomorrow.

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