Acquisition Math: The 1 Ingredient For a Spectacular LTV/CAC

To my knowledge, there are 2 main ways that you can make your business more profitable:

1. Acquire more customers

2. Make your customers worth more to you (get them to pay you more)

The latter can be done with upsells, referrals, down-sells, cross-sells, affiliates, etc.

But how can you make your acquisition more efficient?

What goes into generating better outcomes for the same amount of spend on your marketing efforts?

We believe there is one main ingredient that is the main driver of this.

Message-Market Fit.

What Is MMF?

There are many different ways to explain the product or service that you offer.

For example, here are all the things I could say as an advisory firm for how we help the customers we work with:

• We can help you find investors that are interested in your company to fill your round

• We can build all of your fundraising materials so you can spend time focusing on other areas of the company

• We can help you install a new acquisition channel so you can build a bigger sales pipeline

• We can help you install a new acquisition channel so your reps don’t burnout and they can wake up with a full pipeline every day of the week

You see how many different ways there are to explain what we do?

I probably could come up with 5-10 more if necessary.

Now when you’re testing this in your marketing material / content / ads / outbound, you’ll notice that some variants of your messaging will perform 2-20x better than others.

Absolutely no one will care about, “we can help you install a new acquisition channel so you can build a bigger sales pipeline”, but everyone is interested in “we can help you install a new acquisition channel so your reps don’t burnout and they can wake up with a full pipeline every day of the week.

What does this mean for all of your marketing messaging going forward?

Maybe it means that the real problem your product / service is solving is that your customers are having problems with their sales reps doing too much prospecting and not enough time on closing deals.

Maybe this is the main reason people are actually buying your product / service, but you never knew this UNTIL this messaging variant outperformed the rest by 10x.

This is how you properly A/B test.
This is how you get outsized returns in your CAC.
And this is how you scale that marketing message into infinity by producing more similar versions of winning variants until you find better ones.

A lot of companies are running poor marketing messaging that gets made up for by a great product or a great team.

But the leverage you really have when it comes to profitability and your LTV/CAC is in the acquisition.

There is not enough testing, experimenting, doubling-down on winning angles, and scaling those variants to new audiences and collecting more feedback to find out WHY people really buy from you.

This is how you solve your top of funnel and are able to scale it to other marketing channels.

I won’t get into middle of funnel or bottom of funnel just yet - that’s a post for another time 🙂 

Thank you for reading, I hope this helps.

Ryan Bryden
Breakout Capital Group

If you have an LTV > $50k and and want to unlock 6-7 figures of pipeline from a new acquisition channel, check out our Revenue Advisory Offer.
If you’re raising $2-50M in the next 6 months and want guaranteed access to relevant investors to fill your round, check out our Capital Advisory Offer.