Home / Principles / Step 4
Step 4

Your customer acquisition plan

How customers will actually arrive: through which tools, at what cost, and whether the math pays out before you spend a dollar.

The four acquisition tools

Revive needs 125 new customers every month. Through which tools will they actually arrive, and what will each one cost? There are only four ways to acquire a customer. Most plans lean too hard on the last one because it is the easiest to buy.

Physical presenceLocation, signagefoot trafficPULLOnline presenceWebsite, listingsreviews, SEOPULLReferralsWord of mouth, pressearned mediaPULLAdvertisingSocial, searchmail, radioPUSHKeeps working after you build it. Usually cheaper and more durable.Fast, but the meter always runs.

Physical presence is often a local business's best engine; better signage is frequently the highest-return money it can spend. Online presence is everything a prospect can find without you paying for the impression. Referrals are the most trusted marketing there is, and they depend on a product worth recommending. Advertising is fast and powerful, but stop paying and it stops working. Most healthy plans combine pull to compound an asset with push to create demand now.

Build the plan to close the gap

With the tools named, the plan is an allocation problem. Here is Revive's.

VehicleCustomersShareCost / customerStart-up costNew / monthMonthly cost
Location75060%$0$075$0
Facebook ads (Lemon Benefits)25020%$44$11,00030$1,320
Direct mail (Now Open)25020%$70$17,75020$1,400
Total1,250100%$23$28,750125$2,720
125new customers / moLocation 60%$0 per customerFacebook ads 20%$44 per customerDirect mail 20%$70 per customerBlended: about $23 per customer

The free, durable tool does 60% of the work. Every paid dollar traces back to a named barrier and audience from the marketing map.

The guardrail: LTV must beat CAC

One number governs whether any of this is sane: lifetime value must be greater than acquisition cost. Many operators aim to keep blended CAC to a quarter of LTV or less. Revive's $23 against $144 is about a sixth.

Lifetime value$144Direct mail CAC$70Facebook CAC$44Blended CAC$23Every channel must stay left of this line

When acquisition cost creeps above lifetime value, every customer you buy makes you poorer, and more marketing only speeds up the downward spiral.

Build your own acquisition plan and check it against your LTV.

Plan builder

Run it as an experiment

A plan on paper is a hypothesis. Spend the minimum to test it honestly, build in a trackable redemption (a code, a landing page, a phone number), give digital campaigns about ninety days, and ask every new customer how they heard about you.

Know the benchmarks

Every cost in that plan rests on a benchmark, an industry average for each step of the journey. You can often beat one, but starting from a benchmark gives honest expectations. Your ad agency is usually the best source. Some common public ranges:

ActionCost per actionConverts toTypical rate
Website visit from SEONegligibleLead0.5% to 3%
E-commerce visit from SEONegligiblePurchase1% to 5%
Facebook ad impression$0.01 to $0.05Awareness0.1% to 0.5%
Facebook ad click$2 to $5Lead5% to 15%
Direct mail postcard$0.35Purchase0.1% to 1%
Paid search click (e-commerce)$2 to $15Purchase2% to 5%
Paid search click (website)$2 to $15Lead5% to 15%

The math, step by step

A postcard costs $0.35 and about 0.5% redeem: $0.35 ÷ 0.005 = $70 per customer. A Facebook click costs $2, 15% become leads ($13 per lead), and 30% of leads buy: $13 ÷ 0.30 = $44 per customer. Not guesses, just benchmarks run through division.

Leave the hard-to-measure awareness benefit out of the math on purpose. Underwrite to the conservative number and let the rest be a bonus, not a crutch. And upload your customer list as an exclusion so you only pay to reach genuinely new prospects.

It's the incrementality

The measurement mistake that wastes more money than any other: taking credit for sales that would have happened anyway. The only number that tells you if marketing worked is incrementality, the results caused by the activity above what would have happened without it.

Don't measure what happened after your campaign. Measure what would not have happened without it.

100Controlno campaign135+35 liftwould havehappened anywayTestsaw the campaign

Make the test trustworthy: comparable groups, a sample big enough to rise above the noise, and one variable at a time. The goal is not certainty, it is a defensible estimate of true lift.

Mind the shop rate

Every business has a rate at which things happen on their own: loyal customers who were coming back anyway, word of mouth already in motion. That inertia is your shop rate, and it is the baseline a control group reveals. Measure every result against it, protect it as an asset, and don't confuse coasting on it with growth.

The three steps that always work

“Does social media work? Does TV work? Does SEO work?” The honest answer is always: sometimes. Even Procter & Gamble does not know in advance. What reliably works is a process for finding what works for your business, right now.

1Developpropitious ideasCould it scale? Will itpay out on benchmarks?2TestaffordablyMeasure incrementality with areadable sample.3Do moreof what worksShift the mix as thedata comes in.Repeat. The habit compounds into an advantage competitors can’t copy.

More than one thing drives results

Price, seasonality, distribution, competitors, the economy and your marketing all move results at once. Before explaining any result, list every plausible force. Treat a single, confident explanation as a hypothesis to check, not a fact to act on.

Four ways to justify marketing

1PaybackA measurable return above cost2PortfolioWinners fund the losers3BenchmarkIn line with peers who win4NecessityTable stakes to compete

Match the justification to the investment. Don't defend a brand program with a short-term payback it was never designed to win, and don't hide a weak performance campaign behind vague “brand value.”