The Biggest Companies Aren’t “Hacking” Anything
Summary
- Big companies don't focus on Instagram hacks or small tricks. They concentrate on long-term strategies.
- If you earn the same amount per customer as your competitors, you're stuck in a race to the bottom.
- Relying on social media or ad hacks won't sustain long-term success because these hacks are always short-lived.
- The real game is increasing the Lifetime Value (LTV) of a customer.
- The key to spending more on acquiring customers lies in how much you can make a customer worth to you.
- Customer value depends on gross profit and the number of times they buy from you.
- The frequency of customer purchases is directly related to the quality of your product.
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How To Take Action
I would suggest focusing on improving the quality of your product. The better your product, the more likely customers will buy from you again and again. This directly increases the Lifetime Value (LTV) of each customer. It's a simple but very powerful long-term strategy. Instead of spending all your time on quick social media hacks, put that effort into making your product something people can't resist coming back for.
Another important thing is to increase your gross profit. Look at your costs and see where you can reduce expenses without sacrificing quality. This will leave you with more profit from each sale, which can then be reinvested into marketing to bring in more customers.
Additionally, consider ways to add value that don't necessarily cost a lot of money or time. This could be through top-notch customer service, adding little extras to your product that enhance the user experience, or offering loyalty programs that reward repeat customers.
Also, always track and measure. Know how much each customer is worth to you and use this data to make better decisions about where to invest your resources. This way, you can afford to spend more money acquiring new customers because you know they'll bring in more value over time.
Remember, the goal is not to rely on short-lived hacks but to build a robust system that increases the worth of each customer in a sustainable way. Focus on product quality, cost management, and customer value, and you’ll see growth without the constant scramble for new tricks.
