Mike Andes breaks down how to pick marketing channels by comparing what you spend to acquire a customer against their lifetime value. Every-door direct mail cost the most upfront but delivered the best ROI because those customers stuck around longer.
Today I'm going to be showing you exactly how you can analyze what type of marketing is the best for your small business. Whether it be Google Ads, Facebook ads, print marketing, whatever it is. I'm going to show you how to analyze each type of marketing and determine the one that's going to give you the best results. We got to determine what the best marketing method is we've got to look at the customer acquisition cost input in and then output which is the return on investment. How much do I have to spend to get the customer and then that customer, how much are they worth to me? But get this, even though we had the highest customer acquisition cost from every door direct mail we had the best return on our investment. This is why I say not all customers are created equal because guess what, the customers that came from every door direct mail stayed with us so much longer that they actually had a much better return even though they cost much more.
