Adventure Media helps clients develop comprehensive customer and market insights to identify and create new opportunities for growth, where we help our senior executives understand on what marketing initiatives are working and which ones are falling flat. As such Adventure Media provides a deeper understanding of customer base, and strategies to build bigger and more profitable relationships with them.
How Does This Work?
Set Growth Target
Once you understand your cost of a customer, you set your top line growth target. Let’s say that growth target is 10% and last year you did $6MM in sales. Your sales objective for this year is $6.6MM. Now, you know that your average customer spends, say, $80,000 per year. That’s 82.5 customers you’ll need this year. We’ll round that up to 83.
Determine Attrition Rate
Last year, your firm had 75 customers and your industry has a high attrition rate. Let’s assume your estimated customer attrition rate is 67%. You can count on 25 of those 75 customers continuing to do business with you this year. We need to find 58 customers this year.
Set Budget
Now, you go back to your customer acquisition cost figure that we discussed earlier on this page, and we see that your customer acquisition cost is $6,250. 58 customers TIMES $6,250 = $362,500. Your marketing budget is set with certainty based on your growth objectives and your understanding of your customers.
Get the flexible marketing solution you need based on your goals and budget.
Get More Info