MY #1 SECRET TO GET MORE CUSTOMERS! (from lawn care millionaire)

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. Because there's a lot that goes into it and I think that this video will help you understand it. Now I've made some really in depth videos about what I'm about to show you and I need you to understand this before we jump in to different types of platforms like Facebook and Google and all the rest of it. Because everyone always asks me, where's the best place to get, you know, spend your marketing dollars and get more customers. That's what we're gonna break down today and show you how to analyze that in your market. But the first thing I need you to realize is that marketing is like a funnel. And that is at the top of the funnel you have clicks that come in the top and you can measure your cost per click or your cpc. Then as it goes through here, people go to your website, they call you, whatever it might be, then you can figure out the cost per lead or the cpl. And then all I really care about is coming out the bottom and in the form of customers. And this is also known as customer acquisition cost or cac. So these are the important numbers that you need to know. I made much more detailed videos about this@mbaforantrepreneurs.com and landscapebusinesscourse.com breaking this whole funnel down and figuring out how to optimize each of these. But the reason I'm talking about this today is because there is no singular way to look at cost per click, cost per lead, or customer acquisition cost and determine the best type of marketing. That's not the case because here's the deal as I'm gonna show today.

If I have a $1 cost per click, a $50 cost per lead, and $100 customer acquisition cost to get a customer, and then I have a comparable marketing method that gets me a customer for $50 and my customer acquisition cost changes from 100 to 50, they say, well, that's great, I get twice as many customers for the same price. In theory that's correct. But it's still not enough to know that that is the best marketing method. And here's why I'm making this video. I wanna show you how you analyze different types of marketing. Because here's the thing, you're gonna go to YouTube video. You're hearing me or someone else talk about Facebook ads or Google Ads or every door direct mail or whatever it is, and you're gonna be like, oh, that's the next thing I gotta do. I gotta try that. Or I gotta do HomeAdvisor or Angie's List. What am I supposed to do? Here's how you break it down. Now, I'm going to show three different types of marketing, and we're just gonna make these up on the fly. So forgive me if my math is wrong. I'm just gonna use my calculator and hopefully this works out. Okay, we're gonna compare. Go Facebook. And let's do every door direct mail. Okay? And so again, every door direct mail is gonna be putting, say, postcards or flyers in the mailbox of every single person through the USPS and their postal service. So I'm not gonna make. No, I'm not trying to make a point here. When I am saying a certain customer acquisition cost or anything for these platforms, I'm not at all. I'm simply using it. You could interchange Google, Facebook, and every door direct mail for a host of other ways to do marketing. I'm just using this as an example. So the first thing is, remember, the only thing that really matters is our cost per click, our cost per lead, and our customer acquisition cost. All right? So I'm going to put that first and foremost. And you can literally do this over the course of time and figure out all of these things. So cost per click, cost per lead, and customer acquisition cost. Again, same thing over here. Cost per click, cost per lead, customer acquisition cost. All right, these are the numbers that you need to know first, but it's not the entire picture. Let's go ahead and just throw in some numbers here. For the sake of example, let's assume that in Google, our cost per click is $2. Our cost per lead is, let's say $20. And we close one out of five of those. So our $100 customer acquisition cost. So cost per click is the amount of money you're going to have to spend on Google Ads. It's very easy to find this number. Just going on your Google Ads Manager and finding out what your cost per click is, Very, very simple. Cost per lead is going to be, how many of those clicks do I need in order to get a lead? And in other words, you got to look at your website and be like, okay, how many actually estimate request forms or phone calls or emails came from Google? Now, in this case, I'm assuming 1 out of 10 converted into leads. Then out of the people who became leads, how many actually became paying customers? In this case, I'm assuming one out of five. That'd be my close ratio. I'd have a 20% close ratio in this case, and that would assume my customer acquisition cost of $100. Now, let's look at the cost per click on Facebook. All right, so maybe I am only paying 50 cents and for my cost per click. And so my cost per lead is gonna be $30. Because let's just assume that since they're on Facebook, they're not looking for my services. And therefore I actually get only 1 out of 60 are gonna become a lead. And then I have a really good close ratio. Let's just say, for example, and so now my customer acquisition cost is $90. All right, now let's look at every door direct mail. The thing about every door direct mail is I don't have necessarily a click. And now, in theory, you could drive them to your website, but typically, cost per click is going to be much easier to track accurately on something like Facebook or Google because they're going to give you those metrics as part of your ads manager. Whereas every door direct mail, if you have a phone number and other ways of communicating with you, you might never know that they actually came from this every door direct mail. And the click part is hard. So cost per click. In this case, it's not online. There's going to be less clicks. People might type in your website, but that's not a click. So I can't really get a cost per click, but definitely get a cost per lead by asking customers where they heard about us. And if they mention the postcard or the flyer that I put in their mail, in every direct mail, I can determine that cost per lead. Now, let's assume that this one is $50 is the cost per lead. In other words, it takes cost me $50 in postage and print paper and all the rest of it to manufacture one lead. And now let's assume that it takes three of those. Takes three leads in order to get a customer. That would impute a $150 customer acquisition cost. Because I need three of these leads. I have a percent close ratio. Therefore, my customer action cost is $150. Again, don't get wrapped up in these numbers. I'm not trying to make a point with which platform is better. I'm simply showing you how to analyze the different methods of marketing in your business. You can Use whatever you want. But this is the thing. This is not where you can just say, oh great, Facebook's the best because the customer acquisition cost is the best. That is not the case because not all customers are created equal. Here's what you really have to do. You have to ultimately, I've talked about this in my other videos. Your business is simply a number of customer acquisition cost in money into the business. And what is my return on that customer? All right, so what that implies is if I know that not all customers are created equal, how do I determine how valuable a customer is? Well, you have to know the lifetime value of the customer. All right, so the next thing I want you to track is the lifetime value of the customer. This is very important. And this is gonna be harder to track if you're brand new simply because you're not gonna have years of data to know exactly how long on average customers stay with you. However, you can track on a monthly basis what your attrition number is. And from the attrition, the amount of customers leaving, you can determine how on average someone's gonna stay with you. For example, if your attrition is say 20% over the course of, let's just say, let's say that Your attrition is 25% over the course of your first six months. That would mean that on average over the course of a year it's 50% which would mean that your lifetime, the lifespan of a customer is an average two years. So if I know that the lifetime value of a customer is simply going to be two years in span. So then I need to determine what is the value per year of the customer. And let's just go ahead and assume that it's an average in our business of let's say $1,000, $1,000 per year is the average revenue per customer. Alright? So the amount of revenue that's generated on an annual basis. Now if we determine based upon our monthly or six month or annual attrition rate that our customer typically stays with us for two years, then we know that the lifetime value of that customer is going to be $2,000. Now if we can also look at these customers that we got from Facebook and determine, hey, they actually stay with us for three years. Okay, great. Well then $303,000 would actually be the lifetime value. Then over here for our every door direct mail campaign, we figure, you know what, they actually stay with us for five or six years, let's say six years, they're staying with us. On average, these customers we Track them over the course of, say, six months. We figured out our attrition rate. They stay with us on average for six years. Great. That means your lifetime value of that customer is gonna be $6,000. Alright, so now we know the lifetime value of each of these type of marketing platforms and what their customers bring in terms of life value. Let's go ahead and assume though that we have a 20% profit margin on all revenue. So now what we can do is, okay, the lifetime value of the course of two years from a person that came from Google is going to mean that I have a profit of $400. Okay, so profit from the customers that came from Google is $400 lifetime value, $300,000 from these people who came from Facebook. Again, 20% of that is going to mean that I have $600 in profit from the customers that came from Facebook again over the course of their whole lifespan. Then I have over here, customer acquisition cost $150 for every door, direct mail. And I know that over the course of their six years, they're gonna save me. I make $6,000, which is again at the same 20% profit margin is gonna be $1,200. This is the part that you gotta get to because now we gotta 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? All right, so let's go ahead and look at Google. The customers that came from Google, we know what their profit is over the course of their lifetime. So I know that the input into the business was $100. The output was profit. What was that meaning I have a 4x return on my money for these customers. In other words, the box that I've created when I put a customer in from Google, when this lead that comes from Google comes into the business, it comes out two years later with a 4x return. That's awesome. I turned $100 into $400. This is the beautiful thing about a small business is the ability to take customer acquisition costs and then put a massive multiple on it in terms of return on investment. That's a pretty fantastic ROI to get a 4x on a stock or even real estate over the course of just two years. Pretty phenomenal. Now let's go ahead and look at Facebook. We know we keep them on average for three years of $3,000 in lifetime value, 20% profit let's go ahead and run the math on this bad boy because now what we're going to do is we're taking this same $600 in profit that we made on this customer $600. Divide that by our customer acquisition cost. Guess what? We have a 6.67x return on our investment. This is fantastic. Okay, 6.67. Alright, so let's go move on to every door direct mail. So now what we're going to do is we're going to take again the profit that they generated over the course of their entire lifespan of the customer. Divide that out by our customer acquisition cost of 150. And guess what we got here? An 8x return. 8x return ROI on our money. We turned $150 into 1200. 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. And this is why when people are like, Should I use HomeAdvisor? Should I use Angie's List? A lot of times those are much lower quality customers that aren't going to stay with you as long. And therefore, yeah, you might get a good customer out of them, but you literally are getting twice as much return on your marketing dollars if you were to spend on every door direct mail in comparison to Google. And again, I don't care about the platform here. I'm just showing you when you compare the different marketing platforms for your business, this is what you want to do. Look at customer acquisition cost money in and then what is the lifetime value of that customer? Dividing that by my margin is going to give me what is my return on my investment. It's the only thing that matters in business. If you figure out this, if you crack this code, you will absolutely blow your business out of the water. I recently made a video about the defense, offense and special teams of your business. That is the attrition rate, that is the close ratio and that is the re engagement of customers. And so watch that video. It's on mbaforantrepreneurs.com it's also on landscapebusinesscourse.com but it goes over this in even further detail. But this is how you break down marketing in your business. I everyone's like, where do I get the best customers? What's the best marketing platform? Should I do it on Facebook. This is what you do. You track over the course of time where the leads are coming from, how much you have to spend to get each customer, and then how long do those customers stay with you. Very, very important. That's why you can't just say, oh well, just take Facebook. It's the lowest customer acquisition cost. No, no, no. It doesn't have the best roi. Not all customers are created equal. On average, these. Every door, direct mail campaign, the people that came from that campaign stay with us on average six years versus three, which means that they had a much higher profitability and ROI over the course of their lifespan. I was literally able to 8x my return on the customer acquisition cost, the money I spent on marketing. This is why I'm so passionate about people spending money on marketing in their business. Because if you actually understood these numbers, you would realize that there is no truck or piece of equipment that is going to get you an 8x return over the course of the next several years. Even a 4x return over the next two years. That doesn't happen. It doesn't go up in value. Those tools, those equipment are simply the mechanism required to provide a service to the customer. So that you can make this arbitrage of a customer buying, getting it for $100 and you profiting 400 over the course of a couple years. That is what a business is about. That is how you build a great business has a great multiple, great enterprise value, high profit margins, and you can predictably grow and scale the company very quickly.