An 80% Advertising Cost of Sale (ACoS) isn't bad.
By George Barnett Reid 👀 · August 7, 2020 · Curated by George's Blog
An 80% Advertising Cost of Sale (ACoS) isn't bad.
"George if it's costing you £8 to get a £10 sale, that's bad business"...but is it...
What if the customer hadn't bought from you before?
I've just finished recording a great podcast with Joshua at Nordic Naturals
Who are, in his words, "the best supplement company in the world".
We discussed how high advertising costs aren't to be avoided like the plague,
Because it's customer acquisition.
He explained how they've got a solid understanding of how many purchases each customer makes.
So he's able to view metrics like ACoS (which people are stupidly obsessed with) completely differently.
The episode will be out soon, but whilst you sit on the edge of your seat waiting, let me ask you this...
How much would you be happy to pay for a new customer?
#itsalwaysdayone #buildthemoat #amazon #retention