Customers > $$$

Yesterday I showed you how profit increased with a 2.5% increase in rebuy and a 2.5% increase in spend.

• Year 1 = $3.8 million.
• Year 2 = $4.4 million.
• Year 3 = $4.8 million.
• Year 4 = $5.2 million.
• Year 5 = $5.6 million.

For the same company, instead of a 2.5% / 2.5% increase, let's go with a 5.0% / 0.0% increase. Rebuy gains also apply to new customer gains.

What kind of profit gains do we see here?

• Year 1 = $3.8 million.
• Year 2 = $4.7 million.
• Year 3 = $5.7 million.
• Year 4 = $6.6 million.
• Year 5 = $7.5 million.

Over the following four years this brand makes an additional $4.5 million by increasing rebuy rates more than increasing spend per repurchaser.

Always prioritize customers over spend per repurchaser. Both are important - yes - both are important. But you always want more customers.

P.S.:  Contact me now (kevinh@minethatdata.com) for your own Marketing Budget Experiments project (click here).