by Tony Vidler
Of all the numbers we deal with, which are the two most important numbers for determining whether a professional services firm is a good, or a bad, business model?
Most people guess “Profit” as one of the answers….but it is not one of them.
Profit is important of course, but it is not an accurate picture of whether you have a good business model. It simply tells you how the business model performed historically – not whether the business model will continue performing.
Knowing whether your marketing is effective, and whether it is creating the ongoing opportunities that build good sustainable business performance, comes down to measuring the right 2 numbers to begin with. Everything else thereafter is about refining the business model and measuring results to determine whether the development plan is on track.
The 2 most important marketing metrics are:
1. cost of customer acquisition
2. lifetime value of the customer
The link between these two determines whether you have a good or bad business model, as I explain in this quick video…
…watch the video to learn more…