Customer Lifetime Value vs. Acquisition Cost
I hear this ALL THE TIME.
"Only 5 positive replies… $900 spent… this campaign sucked!"
Step back from the ledge.
That's 5 qualified humans who raised their hand and said "I'm interested."
At a realistic 20% close rate, that's 1 closed deal expected.
At ListKit, our customers' median LTV is: $8k.
You just acquired a customer for ~$900 CAC.
That's damn near 9:1 LTV:CAC. Most companies would tattoo those numbers on their face.
Yeah, we always want more positive replies. Scale the winner, obviously. But calling this "trash"? Insane.
Reply rate and positive reply rate are great for diagnosing campaigns and tweaking copy.
But for actual business impact:
How many interested humans - and ultimately customers - per dollar spent?
What's your true CAC vs LTV?
Everything else is vanity noise keeping you A/B testing subject lines forever instead of scaling winners.
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Lincoln Murphy
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Customer Lifetime Value vs. Acquisition Cost
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