LTV is the game in 2022+
With ad costs rising, it will be more important than ever to start thinking about how to get your LTV game up.
That’s because re-selling to past customers is 5-10 times cheaper than attracting a new buyer. In order to scale, brands will need to affiliate with their buyers and go beyond one-time purchases.
The higher the customer value, the more money you make. LTV allows you to lose money to acquire customers in the front end and make the money in the back end with repeat purchases.
Email marketing is an example of this. You already have your customers’ emails and know they are interested in your product. Getting sales from email marketing is then a no-brainer because you’re not using any advertising budget in order to bring more sales.
It’s a good idea to send a weekly email newsletter discussing new products, how-to content, offering discounts, and announcing giveaways. Keep in mind that emailing your buyers list will yield higher returns than emailing your list of prospects that only subscribed to receive a coupon code.
The problem is that many people are afraid of sending too many emails. But if you’re adding value to people who want what you have, there shouldn’t be a problem doing this.
We had a client who used to send four to five emails a week, and people were okay with it. He was also okay with it—given all the sales he was making.
This frequency might not apply to all businesses, but the best way to know for sure is to test it. That’s why we recommend everyone that we do business with to embrace email marketing and not be afraid to send more emails.