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Welcome to Marketing School, the only

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podcast that provides daily top level

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marketing tips and strategies from entrepreneurs

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that practice what they preach and live

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what they teach. Let's start leveling

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up your marketing knowledge with your instructors,

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Neil Patel and Eric Sue. All

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right, guys, before we start, we got a special message

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Today we are going to talk about three pieces

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of data that are key to marketing,

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so I'll go first. Then, one piece of data

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that a lot of people aren't tracking is LTV.

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People track conversion rates, but as

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a marketer, stop focusing on how much revenue

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you generate in the short run. Focus on

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how much revenue you generate in the long run.

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Someone wants to ask one of my buddies. What's the difference

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between the seven figure, eight figure and nine figure

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company. A seven figure company will spend

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money on marketing and they want to make I'm going to like

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on day one. An eight figure company

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will spend money on marketing and they just want

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to break even and overtime make more

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money. A nine figure company is willing to

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lose money to get the customer because they optimize

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for the lifetime value of the customer. Optimize

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for the lifetime value. Make sure you track this.

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And even though marketers might argue that this

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is not a thing for marketers, the marketers

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that do understand the power of retention are

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levels above the ones that are just strictly focused

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on acquisition, which we talked about a couple episodes

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ago. If you understand acquisition well, which

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you should because you're a marketer, but you're looking

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at retention rates, then what happens is you're

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plugging the leaky buckets and then you're really aligning

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with product. And when you align with

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product, what's going to help at the end of the day

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is if you have good retention, and that's going to help your LTV

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as well. Last, but not least,

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and this whole episode. If you think about the

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pieces of marketing data I talked about LTV,

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which is lifetime, Eric talks about retention.

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They go hand in hand, and the third

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one, which also goes hand in hand with the first

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two. And the reason we're mentioning this is this

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is how you're going to scale in the future is

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up sales and down sALS. So as long as you optimize

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for all three, you can have a much bigger company.

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If you look at the cost for advertising, it's

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increasing. Paid marketing. Whether

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you like it or hate it, it's a great way to scale.

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But because it's continually going up in costs,

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the only way for you to make the numbers work is to

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continually have more upsals and down cells,

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Right Eric, when you mentioned retention helps

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people come back and keep buying from you like

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Amazon, Optimizing for LTV

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encompasses all of this, but you

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need to get the upsals and down cells going

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because then it makes paid advertising

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much more profitable and it can make the economics

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work. So when you're doing paid advertising like oh,

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it's too expensive, doesn't convert well enough,

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it's probably because you don't have enough upsells and down

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cells or retention and you're not optimizing

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for the LTV. And the other thing

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is a couple episodes ago we talked about

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into its twelve billion dollars acquisition of Mailchip.

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That's a perfect example of Into

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it trying to cross sell, upsell, and then also

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take Mailchimp's users and do the same

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thing with their stuff. Right, So it's they're kind of

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cross pollinating and it's a one plus one

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equals five scenario. Okay, So if

3:22

you want to learn more stuff about m and a more creative

3:24

marketing stuff, more business stuff, well,

3:27

our live event, the Growth Accelerator, happening

3:29

in November, November seven to the ninth in

3:31

Miami. It's going to be outdoors. Now is the time

3:33

to apply. Right now. We've got a couple more seats available

3:36

and we will catch you tomorrow. We

3:39

appreciate you joining us for this session

3:41

of Marketing School. Be sure to rate,

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review, and subscribe to the show and visit

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marketingschool dot io for more resources

3:48

based on today's topic, as well as access

3:51

to more episodes that will help you find

3:53

true marketing success. That's

3:55

marketingschool dot io until

3:58

next time. Class dismissed