Joe Steuter, Author at Intention.ly

Intention.ly

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Author: Joe Steuter

Your Growth Strategy Is Broken If You Don’t Know Your CAC & LTV

Posted on by Joe Steuter

Most advisors believe in marketing, but they struggle to commit. They launch digital campaigns with the goal of generating leads, only to pull the plug weeks later when immediate results don’t materialize. 

Marketing is an investment, and every investment must have a measurable return. The only way to prove that return—and gain the confidence to sustain your efforts—is by understanding your Client Acquisition Cost (CAC) and Customer Lifetime Value (LTV).

This is your guide to calculating, comparing, and optimizing the two metrics that determine if your firm can truly scale.

The Cost of Growth: Calculating Client Acquisition Cost (CAC)

CAC is the full, non-negotiable price tag of signing one new client. It’s not just your Google Ad spend; it’s the cost of time, tools, and execution required to move a prospect from initial lead to active client.

Finding Your CAC

To calculate your CAC, divide your total marketing and sales spend by the number of new clients you acquired during that same period.

Breaking Down Total Spend

To accurately calculate CAC, you must include every dollar dedicated to acquisition:

  • Direct Marketing Spend: Ads, content promotion, event costs, sponsorships.
  • Salaries & Fees: The portion of staff salaries, commissions, or external Fractional CMO fees dedicated to client acquisition.
  • Tools & Overheads: CRM, email marketing software, analytics subscriptions, and sales enablement technology.

Your CAC is a dynamic metric dependent on your growth stage. While a startup CAC is often high, as you are paying a premium to establish credibility, an established CAC must be ruthlessly efficient. Your goal should be optimization, not just acquisition.

The Value of the Relationship: Calculating Lifetime Value (LTV)

LTV is the total revenue a client generates for your firm over the entire span of the relationship. This is the metric that justifies marketing and tells you what kind of client you can afford to acquire.

Finding Your LTV

To calculate LTV, you take the average annual revenue per client and multiply it by the average client retention period in years. Then, you subtract your operating costs associated with serving that client.

The AUM Multiplier

For advisory firms, LTV is dramatically different from transactional businesses. A client who brings $1 million in AUM at a 1% fee generates $10,000 in revenue annually. Over a 15-year relationship, that client’s LTV starts at $150,000 in gross revenue.

This AUM multiplier is the crucial difference that justifies a higher CAC than nearly any other industry.

The Stickiness Factor

LTV is heavily dependent on client experience. A poor service model, neglected communication, or a failure to provide consistent, differentiated value will cause retention periods to plummet. A low retention rate means your LTV is collapsing, and your marketing budget—no matter how small—is guaranteed to fail.

The Ratio: Why LTV:CAC is Your True ROI

The LTV:CAC ratio is the single most important number in your firm outside of AUM. It is the ultimate test of your business model.

The Ultimate Test Benchmarks

Here is how to interpret the ratio of your Client Lifetime Value to your Client Acquisition Cost:

  • Under 1:1: You’re losing money on every client. Stop all spending immediately. Your product or process is fundamentally broken.
  • 1:1 to 3:1: You’re breaking even or seeing slow, sustainable growth. This is the minimum acceptable baseline for a new firm. Your focus should be on increasing LTV (improving retention) or optimizing CAC (improving efficiency).
  • 3:1 and Above: This is the range where you can aggressively scale and confidently treat your marketing budget as a strategic capital investment. You are maximizing profitability.

The Strategic Mandate

Firms that prioritize maximizing LTV (client service, retention, stickiness) over simply lowering CAC (chasing cheap, low-value leads) always win in the long term. Your goal is to find the client whose LTV is high enough to justify aggressive, sustainable spending.

So stop asking, “How much should I spend?” Start asking, “What is the acceptable price to acquire a client worth $X over their lifetime?”

Now that you have the framework and a budget blueprint, you can stop treating your marketing like a lottery ticket and start treating it like a strategic fund.

To learn more, schedule a 20-minute call with our team.

 

Your Guide to Killer Photography & Videography for Financial Services Firms

Posted on by Joe Steuter

Let’s face it, your visual presence is make-or-break. Potential clients are scrolling faster than ever, and in a sea of look-alike financial services firms, generic stock photos scream “we’re just like everyone else.”

To truly stand out, build trust, and forge genuine connections, you need authentic, high-quality photography and videography that reflects your brand’s unique DNA.

This guide provides best practices for photography and videography for advisors who want to elevate their brand image. 

Use the following links to navigate each section.

To truly stand out, build trust, and forge genuine connections, you need authentic, high-quality photography and videography that reflects your brand’s unique DNA. Read on for best practices.

Craft a Visual Ecosystem

In a visually saturated digital world, a piecemeal approach to imagery won’t cut it. To build a compelling brand narrative, we recommend a holistic visual ecosystem. This includes standard headshots and a range of visual assets that tell your story, showcase your culture, and build trust with your target audience. Think of it like curating a visual language that speaks volumes about who you are and what you offer.  

Every visual touchpoint should reinforce your brand identity and resonate with potential clients. Consider the impact of: 

  • Authentic Team Moments: Forget the stiff, posed portraits. Imagine candid shots capturing your team collaborating, problem-solving, and even sharing a laugh. These glimpses into your company culture build trust and humanize your brand. 
  • Your Office Environment: Is your workspace modern and innovative? Warm and collaborative? Showcase the environment your clients (and potential hires) would experience. This adds a layer of tangible reality to your online presence. 
  • Candid Shots: These are the unsung heroes. Think naturally posed shots of team members walking through the office, engaging in mock meetings, or working individually. These are perfect for website banners and social media, offering authenticity without sacrificing polish. 
  • Client Interactions: Where appropriate and with full consent, capturing genuine interactions with clients can be incredibly powerful testimonials, adding social proof to your brand. 
  • B-Roll Footage: Video brings your brand to life. Think compelling footage of your team in action, office details, or even the surrounding cityscape. This adds dynamism to your website and social media, capturing attention and conveying energy. 
  • Concise Video Insights: Short, engaging video clips of your team sharing expertise, explaining services, or offering behind-the-scenes glimpses can be incredibly effective for grabbing attention and conveying complex information quickly. 

Now that you have a framework for your visual strategy, let’s explore some ways to capture those impactful visuals with the following tips.  

Understand that quality visuals are an investment in your brand’s credibility and long-term success. Poorly executed visuals can actively erode trust and create a negative impression, ultimately costing you more. photography best practices

1. Partner With a Visual Storyteller

Look for a photographer/videographer who functions as a visual storyteller, capable of translating your core values and audience needs into compelling visuals. Review their portfolio for narrative depth and authentic representation, paying attention to how they’ve captured the essence of other brands, not just technical skill.

2. Budget Smart, Not Cheap

Understand that quality visuals are an investment in your brand’s credibility and long-term success. Discuss your budget openly but prioritize experience and a strong portfolio over the lowest bidder. Poorly executed visuals can actively erode trust and create a negative impression, ultimately costing you more.

3. Collaborate on a Creative Brief

Don’t just hand your photographer a list of the shots you want. Develop a brief that outlines your brand personality, target audience, key messages, and even visual inspiration through mood boards or examples. This ensures everyone is on the same creative page.

4. Maximize Your Shoot

As outline in your visual strategy, plan for shots that can be repurposed across multiple platforms and content types. Consider how a team meeting photo could be cropped for individual profiles or digital ads. Think about capturing both horizontal and vertical orientations, as well as square crops for social media

5. Light and Location Are Your Allies

Pay close attention to natural light and interesting backdrops within your office or chosen location. Consider scouting locations with your photographer beforehand to identify the most visually appealing areas and the best times for optimal lighting. A well-lit and visually engaging environment significantly elevates the final product.

6. Embrace Natural Movement and Authentic Expression

Ditch the forced smiles and rigid poses. Encourage genuine interactions and capture people in motion. Instead of saying “smile,” try prompts like “talk to each other about industry news” or “show me how you collaborate on a problem.” Authenticity resonates far more than perfection.

7. Plan for Post-Production Power

Understand the editing process and ensure the photographer/videographer’s style and editing philosophy align with your brand’s aesthetic. Discuss retouching expectations to ensure a natural and professional finish that enhances, rather than alters, authenticity.

8. Nail the Legalities 

Clearly define and document your full usage rights for all images and videos. Understand how the photographer/videographer may use the visuals for their own promotion.

Bonus Tip: Don’t Forget Accessibility 

While you’re focused on great-looking images for your website, remember that accessibility is crucial and often legally required under the Americans with Disabilities Act (ADA) and aligns with the internationally recognized Web Content Accessibility Guidelines (WCAG). This means adding alt text (alternative text descriptions) to your images.

 

Alt text provides context for people who are visually impaired and use screen readers. It also helps search engines understand your images, which can improve SEO. Make sure your website platform allows for easy implementation of alt text and make it a standard practice whenever you upload visuals. For a deeper understanding of web accessibility standards like WCAG, we’re happy to point you to further resources.

We Can Help

If you’re ready to move beyond basic visuals and craft a compelling brand story through impactful photography and videography, let’s talk. We can help you build a visual ecosystem that truly resonates with your audience and elevates your RIA or fintech firm. 

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