Do you know the LIFETIME value of your customer?

Let's talk about the best kept secret skill for your true return on investment, estimating the lifetime value of your customers.

All the greats, Gary Vaynerchuk, Ryan Deiss, Ezra Firestone, Grant Cardone, all the great marketers. They all preach lifetime value of a customer versus initial cost of acquiring the customer versus return on ad spend.

Let me explain to you what that looks like. If you take a hundred dollar spent, you spent a hundred dollars on Facebook ads and you acquire a customer for a hundred dollars, you've gotten them to buy a $100 product. You have a 1X return, spent a hundred dollars, acquired a hundred dollars in purchases. If you're looking for a 3X return or a lot of marketers out there will sit there and say 1X return, that's a fail, and then sit there and say, "Facebook ads don't work. Snapchat ads don't work. All these paid ads don't work because it only brought me a 1X return and I'm losing money. That's what they all say, "We're losing money."

What they don't take into account is something that's super important, life time value and repeat buyers.

If three months later, this acquires a customer for a hundred dollars then buys something else for a hundred dollars.

And then three months after that, buys something else for a hundred dollars. And then three months after that buys another thing for a hundred dollars because you keep having great products. They love the product.

You keep introducing a new line or you're getting them at the sale. They now spend $100, $200, $300, $400. They've now spent $400 in purchases. So if you look at it, it's not $100 to make a hundred dollars at 1X.

It's that $100 spent actually brought in $400, which is a 4X return on ad spend (ROAS).

So if you look at it from initial view, this looks like a fail, but in reality, over the course of a year, it's extremely profitable.

Please start looking at your Facebook ads and your marketing that way, not just what it takes to acquire a customer, but are you servicing them? Are you keeping them, are you getting them to buy from you again? If you are, this is where the profits made.

Hi, I’m Jason Portnoy. I’m an entrepreneur, digital marketing expert, consultant/coach, and public speaker.

When I’m not helping brands scale to 7 figures and beyond, ay my agency, JPORT Media, I host the top ranked podcast, Perfectly Mentored, where I sit down with all your favorite entrepreneurs, influencers and digital marketers.

But my true full time job is being a husband and being a father to 2 amazing kids.?