Sports Marketing Machine Podcast 13 - 4 Marketing Terms You Should Know
In this episode, Jeremy Neisser discusses four marketing terms related to digital marketing activities in sports. He explains Customer Acquisition Cost (CAC), Lifetime Value (LTV), Conversion Rate, and Average Order Value (AOV). Jeremy emphasizes the importance of understanding these terms and provides insights into their significance for sports organizations. He also shares four key takeaways for selling sports tickets.
Takeaways
- Take time to understand the importance of Customer Acquisition Cost (CAC), Lifetime Value (LTV), Conversion Rate, and Average Order Value (AOV).
- Aim for a customer acquisition cost of at least 4:1, meaning for every $1 spent on marketing, aim to generate $4 in ticket sales.
- Calculate the lifetime value of your customers to make informed decisions about retention strategies and resource allocation.
- Website conversion rates for sports teams typically average less than 1%, so focus on improving this metric.
Sound Bites
Chapters
00:00 - Introduction
00:39 - Customer Acquisition Cost (CAC)
02:59 - Conversion Rate
03:29 - Average Order Value (AOV)
06:04 - Importance of Customer Acquisition Cost
07:00 - Importance of Lifetime Value
07:30 - Importance of Conversion Rate
08:25 - Importance of Average Order Value
09:22 - Takeaways
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- Customer Acquisition Cost (CAC) tells you how much money you spend to acquire a customer.
- Lifetime Value (LTV) is the total amount of money you expect to make from a customer over their "lifetime" as your customer.
- Conversion Rate is the percentage of potential customers who become actual customers.
- Average Order Value (AOV) is the average amount of money a customer spends each time they make a purchase.
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