The Game with Alex Hormozi cover image

The Game with Alex Hormozi

How To Raise Your LTV | Ep 823

Jan 10, 2025
Dive into the world of customer acquisition and lifetime value! Discover strategic tips for boosting profitability through refined sales processes and upselling techniques. Explore the journey from franchise to direct ownership, highlighting unique challenges in various industries. Learn how to enhance customer retention in personal finance education and hear valuable insights into improving cash flow. Plus, uncover essential strategies for optimizing sales and increasing customer lifetime value, all while aiming for substantial business growth.
29:39

Podcast summary created with Snipd AI

Quick takeaways

  • Optimizing the CAC to LTV ratio is crucial for personal finance courses, highlighting the need for self-liquidating offers to reduce acquisition costs.
  • Implementing a skilled in-house sales team enhances customer onboarding and significantly boosts upsell rates, driving revenue growth effectively.

Deep dives

Improving Customer Acquisition Costs and Lifetime Value

The discussion highlights the challenges of managing the Customer Acquisition Cost (CAC) to Lifetime Value (LTV) ratio in personal finance courses aimed at women. The high CAC of $1,500 and low LTV of $2,400 suggest inefficiencies in the current customer acquisition strategy, which relies solely on paid ads. The conversation emphasizes the need to implement a self-liquidating offer or a lower-ticket item before the main $2,000 offer to enhance LTV while minimizing acquisition costs. Suggestions include integrating effective onboarding processes and having a structured sales strategy to funnel customers toward higher-value services.

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