A Customer is Not Just a Single Transaction

Many business owners panic if the Customer Acquisition Cost (CAC) reaches $20, and the net profit of the first sale is only $15 (a $5 loss). But this short-term view destroys company growth.

What is CLV?

It is the total net profit you will earn from a single customer throughout their entire relationship with your company (for example, over 3 years).

Think Like Amazon and Starbucks:

Starbucks might lose money on ads just to get you to buy your first cup of coffee. But they know your Lifetime Value is hundreds of cups over the coming years. Therefore, they are willing to pay more than their competitors to acquire you.

"The business that can spend the most to acquire a customer, wins." - Dan Kennedy.

How to Increase Your Customers' CLV?

1. Upselling: During the purchase, offer a complementary product or a more expensive version.
2. Loyalty Programs: Points and rewards for every purchase that force them to return to you instead of a competitor.
3. Email and WhatsApp Automation: Remind them to buy every month (especially for consumable products like coffee or perfumes).

At DOTS, we don't just look at the immediate ROAS, but we build Retention strategies for you that increase CLV, allowing you to easily outperform your competitors in ad bidding.