Maimbo Hakooma - Invidious

Maimbo Hakooma

Welcome to the official channel of Maimbo Hakooma!

I’m a graphic designer with over half a decade years of experience, a marketing enthusiast, and a Veterinary Doctor by profession. On this channel, I’m sharing my personal journey through design, marketing, AI, and more.

EXPECT TO SEE:

Graphic Design & Branding Tips: From my real projects in my 6 years I have worked.
Marketing Strategies: Based on what works and what doesn't in the field.
Leadership & Growth: Lessons from my role as an Elder in the SDA Church and Student leader.
Academic Journey: How I balanced my studies in Veterinary Medicine.
Business Insights: Working with clients and managing projects from my business, SKYTH DESIGNS LIMITED.

Here, everything is experience-based, no theories, no shortcuts. I’m all about sharing what I've done, how I did it, and what I learned. If you're looking for real, practical insights into design, marketing, or leadership, hit subscribe and join me on this journey of growth!

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Maimbo Hakooma

18 hours ago | [YT] | 1

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Maimbo Hakooma

𝗧𝗵𝗲 𝗧𝘄𝗼 𝗡𝘂𝗺𝗯𝗲𝗿𝘀 𝗠𝗼𝘀𝘁 𝗕𝘂𝘀𝗶𝗻𝗲𝘀𝘀 𝗢𝘄𝗻𝗲𝗿𝘀 𝗜𝗴𝗻𝗼𝗿𝗲 𝗨𝗻𝘁𝗶𝗹 𝗜𝘁’𝘀 𝗧𝗼𝗼 𝗟𝗮𝘁𝗲.

I have heard many business owners complain to me that their ads did not work and they gave up. Some say their marketing or advertising is not working. From my experience, the majority of these business owners face this problem because they do not understand two very important numbers that I am about to explain.

Yesterday, I posted a 30 second video defining these numbers and mentioned why they matter. I received feedback asking me to explain more, so that is why I am writing this. Let’s get started.

These two numbers are Lifetime Value (LTV) and Customer Acquisition Cost (CAC). They may sound big, but trust me, they are simple to understand.

Let’s start with Lifetime Value, or LTV. This is the total amount a customer will spend in your business over time. If you own a bakery for example and someone buys bread priced at 50 every week for a year, that one customer will bring you 2,600 in total. That is their lifetime value to your business. Most owners only look at the first sale and forget how much a happy customer can spend over months or years.

Now let’s look at Customer Acquisition Cost, or CAC. This is how much it costs you to get a new customer. For example, if you run a Facebook ad and spend 500 to get 10 new customers, your CAC is 50 per customer.

Here is why this matters. If your CAC is 50 and the customer only buys once for 30, you are losing money. But if that customer stays and buys again and again, you make more than what you spent. That is where LTV comes in. If you can keep customers coming back, your profit grows.

So how can you use this in marketing and advertising? Before you spend on ads, know your numbers. Ask yourself, how much do I spend to get one customer and how much do I make from them in the long run? This will help you plan better and avoid wasting money.

The recommended LTV to CAC ratio is ideally 3 to 1, meaning the lifetime value of a customer should be three times the cost to acquire that customer.

To increase LTV, keep customers happy so they stay longer. Give them a reason to return. I call this customer imprisonment, and I say it jokingly because it simply means locking them in with value. You can also upsell. For example, in that bakery, instead of selling only bread, you can also add spreads like jam, butter, or honey. This increases what a customer spends.

To reduce CAC, get referrals from happy customers. They will tell others about you and that is free marketing. You can also create free content on social media instead of relying only on paid ads. And if you increase LTV, your CAC becomes more sustainable because each customer gives you more value over time.

I love talking about marketing and business. If you would like to have a meeting or call where we can talk more about this and other ways to grow your business, get in touch with me and we can make arrangements.

I believe if more small businesses understand these two numbers, they can grow faster and spend less. What do you think about this? Do you track LTV and CAC in your business? Let me know in the comments.