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The Impact of Understanding Customer Acquisition Costs and Customer Lifetime Value

Duct Tape Marketing

If you’re in the tech business, and especially if you work with SaaS products, you’ve definitely heard of, and can likely calculate, these values. In the simplest of calculations, it’s the amount you spend on sales and marketing divided by the number of customers you get during the period you’re measuring. Here’s a simple example.

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Are You Building Your Business With a Crock-pot or a Microwave?

Duct Tape Marketing

If you’ve been in business for about 10 years or more, think back – what was your sales cycle before the search engine ruled the world? I am willing to guess that if you said your sales cycle used to be 6 months, and you really look at the time from engagement to close today, it probably is 6 to 8 weeks now.