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How Much Is a New Customer Worth to You?

By |2024-12-01T03:17:05+00:00June 4th, 2024|Forbes Articles|

One of the most difficult questions my clients wrestle with is, “How much is a new customer worth to you?” A customer’s value isn’t static. It can shift based on economic factors like GDP or inflation and also as your business model evolves.

It’s a challenging question, but one that you absolutely must be able to answer in order to strategically set a marketing budget and evaluate a campaign’s success. That means being able to identify a metric that you’ll use to know how much you’re willing to spend to acquire a new customer. Keep in mind that the metric may need to be revisited from time to time.

I like to identify a customer’s worth in two parts:

  • Initial contract value or average cart price.
  • The lifetime value of that customer, which consists of recurring revenue-potential services like software, subscriptions, professional services, upsell opportunities, and referrals. For example, if you’re selling a commodity like tissues, the initial value of a new customer buying a box isn’t much. Still, the lifetime value of a loyal customer who will purchase your brand over the next twenty years adds up.

The next step is to ask yourself, “Out of all the opportunities I have to sell products or solutions, what percentage of the time do I ‘win’?” This number becomes your conversion rate.

Now, the fun begins. How much money does your business want to make this quarter or this year? With some simple math, you’ll be able to determine how many leads you’ll need to achieve your goals based on current knowledge.

Here’s an example: Based on my current website traffic and sales processes, I know that, out of 100 leads received in Q3, we can acquire 10 new customers, or 10%, and they will generate $100,000 in new business. So, how much am I willing to spend to acquire those 10 customers? If I’m comfortable spending $1,000 per customer at the current conversion rate, that would allow marketing to spend $100 per qualified lead.

Once you have that metric in place, you’ll want to determine the appropriate marketing mix to generate those 100 qualified leads. One of the most common mistakes businesses make is evenly distributing their total marketing budget over a specific period of time.

For example, if you have $10,000 to spend in Q3, it might be tempting to budget $3,333 per month to achieve your goals. In many industries and with many target audiences, that strategy does not produce the exceptional sales you want but instead creates what’s called “the threshold of indifference.”

In my book, The Covert Code: Mastering the Art of Digital Marketing, I talk about the importance of impression sharing and critical mass messaging to propel you past this threshold. Frequency matters. If your company isn’t targeting the right audience with enough impressions over a short period of time, you’ll never be “relevant.” Your ads will be overlooked or simply forgotten.

The better strategy is to front-load your marketing efforts, with the goal of reaching scale by driving as much high-quality traffic to your site as possible and then allocating funds toward robust remarketing.

Marketing professionals know that “it takes 7x to sell.” With so much competing noise in a consumer’s daily journey, your messaging needs to be compelling and frequent to ensure that you’re moving the audience through the purchase funnel.

The good news is that, with the advent of programmatic digital marketing, business owners now have the flexibility to achieve their goals at a fraction of the cost of traditional marketing by targeting the right customer at the right time with the right message.

With the correct tools, a realistic target, and the flexibility to pivot when necessary, you can ensure that your digital marketing is strategic and successful.

And it all starts with knowing how much your customer is worth.

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Episode 14 – Featured Guest Ashton Cudjoe

By |2025-12-18T01:17:55+00:00May 31st, 2024|Podcasts, In-Person|

Join us this week as we welcome Ashton Cudjoe, the founder of Hawaii Medical College. Ashton shares his journey in medical education, the innovative approaches his college takes, and the future of healthcare training.

The Covert Code Podcast featuring Ashton Cudjoe, founder of Hawaii Medical College, discussing medical education innovation, healthcare training, and leadership development.

Meet Ashton Cudjoe

Ashton Cudjoe is the CEO of Hawaii Medical Institute and owner of Ashton Business Advisors, with an impressive background in education and leadership. He holds an MBA from the University of Phoenix and a bachelor’s degree in computer and information sciences from the City University of New York—Brooklyn College. Ashton has also studied at Stanford University Graduate School of Business. His expertise spans coaching, strategic planning, public speaking, and management consulting, making him a leader in both the medical and business fields. Ashton’s passion for entrepreneurship and instructional design drives his dedication to shaping the future of healthcare education and leadership development.

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Episode 13 – Featured Guest Anthony Baro

By |2025-12-18T01:13:25+00:00May 24th, 2024|Podcasts, SolarCoaster|

The Covert Code Podcast featuring Anthony Baro, founder of E2SOL and PowerDocks, discussing renewable energy innovation, marine energy systems, and clean technology development.Meet Anthony Baro

Anthony is Founder & Managing Principal of E2SOL LLC (www.e2sol.com), a fourteen-year Rhode Island-based Renewable Energy Development firm, and of PowerDocks LLC (www.power-docks.com), a Rhode Island-based marine technology firm. 

E2SOL (Efficient Energy Solutions) innovates renewable energy technologies, develops sustainable project solutions, and offers products designed to generate, store, and distribute renewable energy. PowerDocks LLC is dedicated to developing in situ power generation, energy storage, electric distribution, and IoT connectivity in the aquatic space for defense, commercial, and oceanography customers worldwide. 

Anthony is a seasoned professional with over 25 years of experience in developing products and systems for the U.S. Department of Defense, Industrial, Commercial, and Renewable Energy Industries. Anthony holds a B.S. in Mechanical Engineering from Roger Williams University and an M.B.A. from Nova Southeastern University. He holds two patents with Tyco International in the field of Electronic Article Surveillance and holds patent-pending filings in renewable energy technologies with E2SOL and PowerDocks. 

Anthony product innovations are recognized as award-winning products in the USA and international markets by the National Marine Manufacturers Association, the Electric Marine Hybrid World Conference, and the Providence Business News. 

Anthony is an active member of the New England Clean Energy Council, the New Building Institute, and Architecture 2030 and is a stakeholder in Ocean State Clean Cities.

Anthony, a native Floridian, is an avid sailor and resides with his family in Bristol, R.I. 

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Episode 12 – Featured Guest Paul Skellon

By |2025-12-18T01:08:53+00:00May 17th, 2024|Podcasts, In-Person|

The Covert Code Podcast featuring Paul Skellon of Pacific Air Cargo discussing marketing strategy, brand leadership, and innovation in freight forwarding and aviation.Paul Skellon: Marketing Visionary at Pacific Air Cargo

Since joining Pacific Air Cargo, Paul Skellon has been instrumental in transforming the company’s corporate culture, driving diversification, and forging innovative partnerships. Paul has demonstrated innovative thinking by overseeing the expansion of charter services, including FEMA flights during COVID, and has successfully navigated new markets with the nimbleness that Pacific Air Cargo is known for. His efforts have extended to PAC RFS, enhancing the company’s reach and capabilities.

Marketing Freight Forwarding: Overcoming Challenges

One of Paul’s greatest challenges in marketing freight forwarding has been conveying a consistent service message across diverse mediums while differentiating Pacific Air Cargo from its competitors. Paul leverages all possible channels, from print and digital to direct marketing via MailChimp, even branding a B747-400, to ensure the company’s message is clear and compelling.

Building a Powerful Brand

Paul believes that credibility is at the heart of a powerful brand. Delivering on promises, having an easy-to-understand product or service offering, and maintaining clean and simple brand marks are crucial. Exceptional service delivered consistently helps build trust and loyalty among clients.

Initiatives at Pacific Air Cargo

Upon his arrival, Paul found virtually no marketing efforts in place. He introduced digital marketing, establishing accounts on Google, Facebook, Instagram, and LinkedIn. He also launched print advertising in targeted trade publications and high-end hotel and residential publications, focusing on decision-makers. Paul upgraded the company’s website, leveraged PR to spread the brand, and initiated “PAC Gives Back” philanthropy and sponsorship programs supporting various organizations like PHAM, Make-A-Wish, and the Surfrider Foundation.

Internally, Paul spearheaded communication and culture change initiatives, including the MYPAC web portal and the bi-monthly full-color newsletter, Wala’au, which promoted a communal spirit and shared vision within the company.

Measuring Success and Staying Relevant

Conversions are the primary metric Paul uses to evaluate advertising success, along with engagement with the brand for future purchasing decisions. Growth in cash sales is the ultimate goal. Staying relevant involves continuously adapting to industry trends and maintaining a forward-thinking approach.

Future of the Industry

Paul expects the industry to grow steadily over the following five years as a result of the development of sustainable aviation fuels (SAFs), increased e-commerce, and more affordable aircraft. External factors like global conflicts, pandemics, and regulatory changes will play a significant role, but Paul remains optimistic about the industry’s potential.

Combating Digital Fraud

Paul has encountered increasing instances of phishing, with fraudsters becoming more sophisticated. His advice is to remain vigilant, especially with email communications, to safeguard against fraud.

To learn more about Pacific Air Cargo, visit pacificaircargo.com and connect with Paul on LinkedIn.

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Episode 11 – Featured Guest Rye Zupancis

By |2025-12-18T01:02:48+00:00May 10th, 2024|Podcasts, Get Your Geek On|

The Covert Code Podcast featuring Rye Zupancis, data experience designer and educator at Interos, discussing data visualization, geospatial networks, and supply chain resilience.

Meet Rye Zupancis

Rye Zupancis is a data experience designer, engineer, and educator with a background in conceptual art and community media. She currently specializes in designing and engineering geospatial and network visualizations at Interos, a supply chain resilience startup. She previously worked in data visualization at the Wall Street Journal and BlackRock and is a professor of continuing education at Parsons School of Design, The New School.

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Consumer Privacy: How Universal Is Universal Consent?

By |2024-12-01T03:19:57+00:00May 9th, 2024|Forbes Articles|

Forbes Books logo featuring the initials 'FB' with 'F' in black and 'B' in blue.

I was recently invited to be a guest on a webinar hosted by the International Association of Privacy Professionals titled “Universal Consent: Building Beyond Cookie Consent.” The invitation came during a call discussing Arlo Gilbert’s new book, The Privacy Insider: How to Embrace Data Privacy and Join the Next Wave of Trusted Brands.

This book opened my eyes to the challenges in developing next-level privacy programs to respond to data protection regulations and to the opportunities compliance has in attracting new customers and communicating with existing users.

It’s important to fully understand the risk in identifying a user’s online interest and sharing something they might be surprised and delighted by, such as a new pair of boots, a trendy purse, or those perfect ski goggles for their upcoming trip to Tahoe. The problem is all of the other ways data is being used. For example, location data could be used to identify that someone was at an abortion clinic or a cancer treatment center.

That’s why consent is so important. Users must be able to decide whether personal information is identifiable or shared with a third party, and that decision must be just as easy to retract as to give.

Historically, marketers have been among the largest users and (unfortunately) abusers of user data. We’re also often one of the biggest barriers to organizations moving toward the adoption of best practices such as universal consent.

So, what is universal consent and how can it help make us better marketers?

Universal consent dictates how organizations manage opt-ins across multiple devices and systems. It helps identify a user’s communication preferences in a clear data map that tracks and records opt-ins and opt-outs and provides guidance on how an organization can use that data.

But what happens when that same user exercises their “right to be forgotten” and asks to be deleted from all software and systems?

Referred to as an SRR or subject rights request, this privacy regulation grants individuals the right to review or manage personal data that companies have collected about them and to have it purged, corrected, or amended. Managing these requests could become a challenge without a clear plan in place.

The good news is that universal consent makes this process easy and efficient by tracking when consent was given and when it was retracted. It not only reduces waste but also increases efficiency.

As we respond to these regulations, it’s important to stay focused on our goals. Continuing to market to past customers who won’t repeat their purchases can cost you in more ways than one. While sending emails or text messages won’t break the bank, receiving high spam or block number requests on your domain or registered business numbers can have serious long-term consequences.

Too much spam on your domain can result in all company emails being flagged as malicious. Once a domain is marked, it’s almost impossible to get it unmarked. That means you’ll need to change your company’s email addresses, which can lead to brand confusion and missed opportunities.

The same is true with texting or calling customers. If they keep opting out or asking to be removed, the result is not more business but less at a higher cost in labor, fees, and time. The cost of storing inefficient or inaccurate data matters too.

Arlo’s book makes it clear: To be effective in an evolving digital landscape, business owners must prioritize consumer protection. By being at the forefront, you’ll increase your marketing results by targeting engaged users and building loyal relationships centered around trust and transparency.

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Episode 10 – Featured Guest Steven Shaer

By |2025-12-17T22:56:44+00:00May 3rd, 2024|Podcasts, Get Your Geek On, SolarCoaster|

The Covert Code Podcast featuring Steven Shaer, technology entrepreneur and CEO of Atlantic CRM and Cloud Solutions, discussing CRM systems, custom software, and solar industry technology.Meet Steven Shaer

Steven Shaer has a long history of technology entrepreneurship and building strategic systems for a range of industries over a 30-year career. Educated with a BS in Computer Science from Rensselaer Polytechnic Institute and an MBA from New York University, his earliest career was spent as a technology individual contributor for such blue-ribbon companies as IBM, Deloitte, and Accenture. For the last ten years, he has led Atlantic CRM and Cloud Solutions, a Miami-based software development and software services company that has served a number of solar and other home services companies with CRM and custom software solutions. He is recognized as an expert in the solar industry, having consulted several of the largest solar companies in the US.

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Episode 9 – Featured Guest Jason Cutinella

By |2025-12-17T22:52:56+00:00April 26th, 2024|Podcasts|

The Covert Code Podcast featuring Jason Cutinella, CEO of NMG Network, discussing media innovation, digital storytelling, and content distribution strategy.Meet Jason Cutinella

Jason Cutinella is the founder and CEO of NMG Network. After launching his career at McCann Erickson Worldwide as a media buyer for the Sony Pictures account and then transitioning to working on the client side of Sony Music International in New York City, Jason relocated to Hawai‘i in 2004 to pursue a master’s degree in communications from Hawaii Pacific University.

With a vision to transform the way that content is created and distributed in Hawai‘i and beyond, Jason founded NMG in 2009 to connect travelers and sophisticated urbanites to authentic experiences. To expand from print into digital content and reach new markets, Jason spearheaded the acquisition of Visitor Video Inc., Hawai‘i’s leading video distribution company for the visitor industry, to create NMG Network and enrich the company’s diverse storytelling capabilities.

In addition to his role leading NMG, Jason has served as Fundraising Chair of the Executive Board of Directors for the American Advertising Federation (AAF Hawaii) and ‘Ohina Short Film Festival, and he serves on the American Heart Association fundraising committee.

When Jason is not driving his business pursuits, he can be found rooting for the US national team at World Cup outings with friends, searching to find the best park bench to relax, catching his thoughts, and dreaming big! He also enjoys exploring his newfound love for snowboarding!

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Understanding How to Do Business With Aloha

By |2024-12-01T03:21:24+00:00April 26th, 2024|Forbes Articles|

For the past 20 years, I have called Hawaii home.

I’m not Hawaiian. I’m a Kama’aina, which means Local. The distinction matters.

I’ll never forget the day I received an email from my contact at Village Roadshow. They had acquired Hawaiian Waters Adventure Park and were partnering with the agency where I was working to rebrand to Wet’n’Wild Hawaii.

The email opened with “ATTENTION ALL EXTREME HAWAIIANS,” causing me to choke on my coffee. Hawaiians are native to the island. Locals are transplants. This common misconception is just one of the many nuances that mainlanders often miss when it comes to the fiftieth state.

What Does Localization Mean?

Growing up in Aspen, attending prep school in Pebble Beach, and attending college in Boston, I was used to the concept of localization, but nothing had quite prepared me for crossing the Pacific.

One of the first things I noticed was that no one honked their cars—not even if someone was looking at their phone and missing a light. There might be a slight love tap along with the shaka sign or a “Hey bro. You’re up!” with smiles and friendly waves, not middle fingers.

It’s little things like this that have added up to me loving the islands and believing that there is no better place to raise a child or run a business.

In Hawaii, everyone is family. This means that keiki (children) address elders as “uncle” and “auntie,” terms of respect and endearment. It also means that businesses don’t engage in aggressive, competitive ads. Instead, they practice the concept of Kuleana.

Kuleana loosely means “responsibility” and is bi-directional, reflecting a reciprocal relationship between the person responsible and the thing they’re responsible for. It’s a term used to maintain balance within society and the environment.

Kuleana for the land means to care for it, and, in return, the land then feeds and shelters us. Kuleana is a privilege. Kuleana demonstrates concern and responsibility.

Kuleana is Vital to Doing Business in Hawaii

These concepts are vital to understanding the unique differences in doing business here. I first encountered how Kuleana impacted businesses when my agency was working on a rebrand for Hawaii Employers Medical Insurance Company (HEMIC).

They provide comprehensive products and services to protect Hawaii businesses and their workers, including workers’ compensation, temporary disability, and specialty insurance solutions. They deeply practiced the concept of Kuleana and translated that into everything they did.

From the solutions they offered to the nonprofits they donated to, every decision was framed within the context of whether it was in the best interest of the land and the people of Hawaii. This meant that they were willing to work with identified competitors to make sure that people were protected.

The concept of “us at any cost” doesn’t have a home in Hawaii. People actually do want everyone to succeed and to lift each other up. In fact, did you know that aloha means “breath of life” and represents an exchange or sharing of ha (breath)? When we use this greeting, we’re inviting connection and respect for life.

This awareness of the importance of respect and connection transforms how business is carried out. Living with aloha is a lesson in light, in collaboration, and in positive growth that I want to share with everyone. We’re all connected. If we treat each breath as an opportunity for connection, we can achieve so much more.

An Invitation

I invite you to practice living and working with aloha. Start small by simply making a pledge not to honk your horn if the car in front of you is moving slowly. Then, go bigger and take a careful review of how your business behaves, both internally and externally.

Consider your decisions within the Kuleana framework and choose opportunities to have a positive impact in your workplace and your community.

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Episode 8 – Featured Guest Michael O’Donnell

By |2025-12-17T22:50:05+00:00April 19th, 2024|Podcasts, Author, SolarCoaster|

The Covert Code Podcast featuring Michael O’Donnell, Vice President of Sales at SunSolar Solutions, discussing high-performance solar sales, closing strategies, and generational wealth mindset.

Meet Michael O’Donnell

Through his “today only” closing method, Mike O’Donnell teaches salespeople the recipe for generating up to a 7-figure income by achieving as high as 8-figure sales results driven by a 9-figure, generational wealth mindset.

As the #1 salesman in the world with a personal sales volume of over 12,000,000 watts of solar sold since 2015, he teaches his method to both individual salesmen and entire companies to triple their closing percentage. Mike is a five-time D2DCON Double Golden Door Award winner and is also the Vice President of Sales and a Partner at SunSolar Solutions in Arizona. He has been a keynote speaker at numerous solar conferences and has been featured on many sales and solar podcasts. Mike is the author of the book No Matter Watt: The Recipe for a 7-Figure Income in Sales.

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