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The Number That Will Scale Your Business More Than Anything Else | Ep 739
The Game w/ Alex Hormozi
Maximizing Customer Lifetime Value
To maximize customer lifetime value, focus on ascending customers to high-value products after acquisition to reduce the cost of acquiring customers. By adding a percentage of the high-value product price to the total lifetime value, you can increase profitability. Calculate the ratio of customer lifetime value to customer acquisition cost (LTV to CAC) to determine the most profitable product to advertise. Stack multiple products behind the highest LTV to CAC ratio product to further increase profitability and enable more aggressive marketing to attract more customers.
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