- Do you know the “real” acquisition cost of getting a customer? How much money will that customer generate? Is it worthwhile spending the money/resources to acquire the customer?
- Be sure to include the full cost – if using sales people or owner, be sure to assign fully-burdened Fair Market Value cost to that activity (include hiring, training costs)
- Advertising/marketing might not be considered affordable, but when compared to other forms of customer acquisition costs, it might be more affordable and effective
- Make decisions, based on accurate financial information – the numbers do not lie
- Each business is unique, so what is valid for one business may not be for another
If you would like to improve your business or know anyone who would like to improve theirs, call me