How to out-market your competitors

How were we at Scorpion able to out-market our competitors?

We had fantastic client retention.

Huh?

Ok, here's the math.

Let's assume both we and our competitors made $1,000 per month per client.

With us, clients stayed for 36 months.

With our competition, they stayed for 12.

Our average lifetime value ("LTV") of a new Scorpion client is $36,000. ($1,000 x 36)

Our close competitor was $12,000. ($1,000 x 12)

We would spend 10% of the LTV, or $3,600, to acquire a client, whereas our competitors would only spend $1,200.

In short, we outspent our competitors (doing some cool shit) and could afford to do so because our retention was so high.

Here's the thing...

Better lifetime value = more marketing budget.

Want to spend more? Improve your customer lifetime value.

CQ