This is the season finale of our deep dive into marketing return on investment (ROI).

In this week’s episode, we discuss two important topics — customer acquisition cost and how to make a “reverse ROI argument.” A reverse ROI argument is made in times of declining sales, often due to difficult economic circumstances. It aims to prove that marketing’s efforts made the downturn in revenues less dramatic than they could have been.

In this episode you will learn:

• Why it can sometimes be a good idea to give $900 in value for $150 – and when its a terrible idea!
• Why there were skids of abandoned household sweepers all over England in the 1990’s – and what you can learn from it.
• How you can radically reduce the odds of your company being undercut by new competitors by utilizing a company trend discipline

Here’s some quotes from the team’s discussion:

“Marlboro cigarettes cut their price by 20% before they had to — and benefited greatly from doing so.”

“If you do this analysis correctly, you can allow a customer acquisition cost that is much higher than you thought it could be, and still be profitable in the long run.”

“When it comes to trend analysis, the formula is simple. Examine. Align. Make a bet as a company”

We hope you enjoy the podcast!