What’s up, basketball trainers?
In this podcast episode, I dive into the world of business numbers, focusing on the concept of lifetime value (LTV) and how it relates to advertising, especially through Facebook.
My goal is to create a “money machine” that returns three to four dollars for every dollar spent. I reflect on my experience training kids from sixth grade to college and how understanding the cost of acquiring a customer through Facebook ads is crucial. It’s not just about minimizing costs but also about acquiring high-quality customers who stay longer. I illustrate the complexity of calculating LTV by emphasizing the importance of considering the actual costs to provide a service, rather than a simplified formula of price times the number of purchases.
Tracking these numbers has made me realize the potential of focusing on private training clients who pay more and stay longer. The insights from LTV calculations have helped me determine how much to spend on acquiring new customers and how to grow our business efficiently.
Despite the numerous factors that affect costs and customer behavior, such as seasonality and changing expenses, the key is to aim for predictability and retention. By continually tracking data and adjusting strategies, we can enhance our business operations and better serve our clients, ultimately aiming for a higher return on investment in our advertising efforts.
Hope this helps you with your training business. Feel free to share your thoughts on today’s episode on my IG account and I’ll make sure to exchange ideas with you!
Have a great day everyone!
