All of a sudden, this marketing channel doesn't seem so unprofitable, does it? If you don't understand your target audience and what your buyer personas are worth, it becomes very difficult to decide which marketing channels will help you achieve your business goals. So if you don't have buyer personas, don't know the lifetime value of your personas, or don't know what percentage of your sales come from each persona, now is the time to do it. discover! Phase 3. Clarify your acquisition cost Once you know who you are targeting and what they are worth, you need to figure out how much it costs to attract a new customer from each persona. The easiest way to do this is to simply take your total marketing spend and divide it by the number of sales generated by each persona.
So, if ACME spent $400,000 and fax list generated 90 “Classic Cindy” sales, nine “Pro Paul” sales, and one “Infinity Izzie” sale, here's how their acquisition cost would break down: cac-acme-buyers-personas With this pattern, it looks like ACME is losing money on “Classic Cindys,” but more than making up for it on “Infinity Izzies.” Advertising Continue reading below However, this model assumes that 'Classic Cindys', 'Pro Pauls' and 'Infinities Izzies' all run through the . If you think about it, it doesn't make much sense. Is 'Infinity Izzie' - a corporate client that will lose $1.59 million on widgets - likely to respond to the same ads as 'Classic Cindy'? I strongly doubt it. Perhaps most of “Classic Cindy's” sales come from cheap social media ads. "Pro Pauls" click YouTube ads.
The "Infinity Izzies" come from very expensive paid search ads. If so, here's what ACME's actual acquisition costs might look like: acme-buyer-accurate-personas-cac Now, your marketing channels might not be that simple, but with a little effort, you should be able to tie your marketing . Advertising Continue reading below As you evaluate each marketing channel, don't be surprised if you discover great opportunities for your business. Some channels seem to generate a lot of value, but when you look at the revenue they produce, they are a waste of money. On the other hand, sometimes a channel may look like a loss on the surface, but when you dig into your data, you uncover a gold mine! Phase.