Customer Value Optimization

Are your online business endeavors not making you enough revenue?

Would you like to know some simple, logical and workable ways to increase revenue?

Let’s discuss how you can get more money out of each customer, and optimize the customer’s long-term value.


You need a formula

You will never make decent revenue nor break even unless you have an efficient, well-crafted system to get as much value out of your customer as possible.

There must be a mathematical formula which shows how much you spend on average to get one customer, and how much they spend, and if they buy again. You have to determine the lifetime value of the customer, and how much it costs to acquire him.

A formula in its simplest form could look like:

  • 1000 flyers handed out gets you 10 customers.
  • Each customer pays $1000 for his product/service.
  • $10,000 revenue generated.
  • Cost of flyers = 1000.
  • Cost to distribute flyers = 1000.
  • Total promo expense: 2000.
  • Promo minus the revenue = $8000.
  • $8000 minus taxes, payroll, expenses = profit


This is a very simple formula where you are using one type of promotion (flyers), and one service at one price ($1000). This gets more involved when you add in multiple channels for acquiring customers, multiple products and services, and repeat sales.

Now let’s look at a formula specifically for internet marketing and your website and look at the first part of the formula.


Customer Acquisition

Your formula starts with how you actually GET visitors to your site: Customer Acquisition. If you want to increase your revenue then the very first thing you can do is increase the flow of customers to your website; this automatically generates more revenue for you.

Here are the three main channels:

  • Organic SEO searches
  • PPC advertising
  • From posts on Social Media

These are the three main ways by which a person will reach your website.

The channel that you have the most control over by far is PPC advertising. It is hard to increase your Organic SEO traffic and your social media traffic.

Increasing traffic from PPC is as easy as increasing your budget and just putting more money into it. It is very direct.

If you want to increase traffic by organic SEO you have to be willing to devote months of time for the site to move up in the search engine result pages. Also, it is no sure thing that your site will move up. If the SEO is done wrongly it won’t move at all or even worse, move down.

Getting traffic to your website via social media is tempting because it is free, all you have to do is post. However, you won’t get enough traffic to your site unless you have an audience/followers of tens of thousands. If your audience is lower than that there will only be a trickle of traffic to your site.

PPC has none of these issues. The benefits of using PPC to get traffic to your site are:

  • Allows you to actively push traffic to your site (not passive like SEO). No waiting required.
  • It allows you to select your SPECIFIC audience, the people you want to put your ads in front of, and not show your ads to people who are not your audience
  • It allows you to get prospects who are interested, and are fairly deep in the ‘sales funnel’, since they are interested enough to click on an ad.
  • Ability to track exactly what happens when someone clicks on your ad, and their entire journey through your landing pages, etc. This allows you to analyze and staticize every step of your sales process, and improve weak points.


In our next article we are going to go over the rest of the formula and discuss the sales process which occurs after you get traffic to your site.