The Most Important Metric For Your Online Business

In this video I talk about the most important metric for your online business. While there isn't really just one metric that is important, there are some that are more important than others.

Just for fun, let's talk about what I think is one fo the most important metrics for your online marketing efforts: The CAC/LTV Ratio!

Ideally you want your customer acquisition costs to be far lower then the average lifetime value of their customers. This is a great metric because it encapsulates so much information about the health of your marketing and the long term viability of your customer aquisition strategy.

We can get even more specific with this metric by looking at the per channel ration of CAC/LTV. This is an even better measure as it shows you the health of your customer acquisition programs broken out by channel.

For most businesses, there is going to be a lot of work they have to do up front before they acn calculate either of these numbers. For this reason, you should focus on being able to track the LTV of your customers and the blended (all channel average) customer acquisition costs.

If you have pretty reliable numbers for both LTV and blended CAC, you are doing really well.

In the video, I give an overview of some of the things that need to be in place to get reliable values for these numbers. I also talk about some of the benefits of tracking these numbers and why many companies fail to do so.

Alright, if you liked that video, make sure to hit the like button and subscribe to the channel. Also, make sure to comment below letting me know what topics you would like me to cover on follow on videos. As always, thanks for watching.
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