The Game with Alex Hormozi The Simple Exercise You Can Do TODAY, to Find Your Biggest Opportunity for Growth | Ep 277
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Feb 11, 2021 Discover the power of Lifetime Value as a key factor in business growth. Learn a simple exercise to identify where to focus your energy for maximum opportunity. Dive into strategies for acquiring customers and increasing the value they bring over time. Explore actionable tactics to boost revenue through techniques like upsells and cross-sells. This approach aims for clarity and direction, helping avoid overwhelm while driving your business toward greater success.
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Two Business Growth Levers
- Grow your business by increasing customer acquisition or their lifetime value.
- Customer acquisition involves getting more customers through various channels.
Calculate True LTV
- True customer lifetime value (LTV) is the gross margin over their lifespan, not just revenue.
- Consider gross margin, not just revenue, when calculating LTV, especially in non-software businesses.
Five Ways to Increase LTV
- Increase LTV by raising prices, lowering costs, reselling/retaining, cross-selling, or upselling.
- Analyze your business to identify the easiest and most effective levers to pull.
