A Few Marketing Terms To Understand

A-Few-Marketing-Terms-To-Understand

Marketing is one of the most important parts of any business, but you won’t find a lot of success if you don’t understand the basics. Fortunately, it is never too late to start learning. Here are a few marketing terms that you should understand, thanks to Entrepreneur:

CLTV – Customer Lifetime Value

The value of a customer is determined based on how much money you expect that customer to spend with your business. If a customer typically signs a one year contract spending $100 a month, then their CLTV is $1,200. This value helps you determine how much you can afford to pay for a lead and whether or not they are worth it, also called CAC (customer acquisition cost). This is how much you paid to get a new customer. With pay per call, it is worth paying over $20 a lead for someone who is actually going to call in for a quote because that customer will be worth $1,200 if they sign up. Pay per click, on the other hand, is only worth a penny or less because that person may just click right off the web page and will never even try to get more information.

Referrals

Getting a referral is one of the most important things you can do because recommendations are more powerful than any other kind of referral source according to Entrepreneur. As you use pay per call marketing, your new customers will basically all be referral based, which means you are getting customers who are actually interested in finding out more about your product or service because someone else referred them to it. Most people find their regular services or products based on referrals, which makes this the most essential part of marketing for any company.

Online presence

Without an online presence, you won’t have a lot of success in today’s world. More or less, this is the ease at which people can find out about your business on the internet, whether that be through a website, social media, or any other form of online interaction. By using pay per call, you are able to increase your online presence because someone else is blogging about your company.

Source: entrepreneur.com/article/239273

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