IDK My Marketing Budget.

IDK My Marketing Budget.

What should you actually be spending?

0 of 6 answered

This or that

1. 1. You spent $2,000 on ads and got 40 new customers. Which number did you just calculate at $50 each?

   CACLTV
   Why?

   CAC is what one new customer costs you. LTV is what they spend over time.

2. 2. A client books you every month for three years. Which number is that?

   AOVLTV
   Why?

   LTV covers the whole relationship. AOV is just one order.

Mix and match

Pick the definition that belongs to each term.

• ROASChoose a definitionHow long a customer takes to repay what you spent to get themRevenue you get back for every ad dollar you spend
• Payback periodChoose a definitionHow long a customer takes to repay what you spent to get themRevenue you get back for every ad dollar you spend

Multiple choice

1. 1. A healthy LTV to CAC ratio for most small businesses is at least:

   1 to 13 to 110 to 1It doesn't matter
   Why?

   Three dollars of lifetime value for every dollar spent leaves room for overhead and profit.

2. 2. Attribution is the practice of:

   Crediting the marketing that actually drove a saleNaming your businessSetting your pricesWriting your terms of service
   Why?

   Without it you can't tell which spend to keep and which to cut.