The Offer is What Matters
I just finished watching a video on YouTube on the importance of getting your offer and delivery right and I can’t help but share it with you.
To grow a business, there is only really two things you can do.
You can increase the life time value of your customers.
You can get new customers.
Just about everything else is maintenance or an upgrade to support those two growth levers.
The offer is where you have the power to lower CAC (customer acquisition cost) while also increasing LTV (lifetime value).
Here’s what happens when you have an offer and delivery so good that the customer feels like they’re getting the better end of the deal:
LTV increases because the customer will call you the next time they need your product or service.
CAC plummets because they will be 10x more likely to tell their friends about you.
Fixing your offer and delivery is like fixing the holes in the leaky bucket your leads are landing in.
Prioritize customer satisfaction, even if it means halting growth for a little while.
If you owned a sandwich shop, would you rather perfect your sandwich to make sure people come back or advertise to get people to try the crappy sandwich once and never come back?
If you’d like to watch the full video, here’s the link.