"This is at the heart of all of our marketing, media buying, and customer acquisition," she said.
"Assuming you have a good marketing message, combining A.R.M. with an increasing Allowable CPA is how you grow a business exponentially. So, let me explain what they are, and how we use them."
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Now, let me interrupt the story, for a second, and explain a couple of things.
First, what Katie means by a good marketing message is a campaign with a Big Marketing Idea, an emotion-inducing lead, a solid argument, and a quality offer.
Katie's not talking about having the latest and greatest whizbang sales funnel. Nor is she talking about having the most up-to-date conversion hacks or tricks or anything like that.
The majority of Agora Financial's marketing campaigns are basic and simple. Even considered "dated" by some.
But, simple marketing funnels with a "good marketing message" combined with A.R.M. and an increasing Allowable CPA... can produce a crazy, crazy fortune for you.
Don't ever forget that. It's exactly how Agora Financial has become, and remains, Top Dog.
Second, let's talk about CPA for a moment.
You likely know, CPA stands for Cost Per Acquisition.
In the context of customer acquisition, CPA is the cost to generate a single new customer sale.
So it's a lagging indicator. It tells you what it cost you, after the fact, to acquire each new customer.
For example: Say you spent $1000 on advertising and generated 10 new customers. You have a CPA of $100 ($1000/10).
But, what is Allowable CPA?
And, for that matter, what is A.R.M.?
Well, let's pick back up with the story to find out...
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Katie hits the space bar on her laptop.
A new slide appears on the screen.
"Alright. ARM," she says, "is acquire, retain, and monetize. We use different processes to bring in new customers, maintain an on-going paid relationship with them, and grow their value by presenting them with additional offers."
Katie stresses the word "paid" when talking about the on-going customer relationship.
She's really trying to drive home the point about building and maintaining a list of buyers. Not prospects.
"The key," she says, "is that we're acquiring new customers for each of our products at the right price point, then using our monetization processes to drive-up the value of each of those new customers."