Never Before in the History of Business…
I was lucky to attend a presentation the other day by Dr. Paul Kedrosky, whom I’ve known for a couple of years, and who always has the best nuggets of information.
He gave the keynote presentation at Angel Oregon here in Portland - and was talking about why angel investors often have a leg up over VC’s.
Anyway, this set of statistics blew me away - the cost of customer acquisition is dropping like a stone. As a result of technology, of course…
From his slides:
2500:1 cost-effectiveness improvement. 6:1 in a decade.
Never happened before in the history of modern business.Search: $8.50
Yellow pages: $20
Online banner ads: $50
Airplane banners: $55
E-mail: $60
Direct mail: $70
Indirect sales: $5,000
Direct sales: $22,000
My mantra to every customer I have - improve your “find-ability” online. With statistics like these, it’ll be that much easier to motivate them (large and small) to do so.
Thanks, Paul!
