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The Numbers and Psychology of Marketing

I would like to think of myself as a student of marketing.  Specifically direct response marketing, because over the years I’ve seen how “brand” style marketing (at least in the beginning stages of your business) can eventually make you frustrated and broke.

I’ve followed marketer and consultant Dan Kennedy for the past 5 years.  When I get overwhelmed or discourage I remember this quote from Dan…


“Marketing come down to two things: Math and Psychology”

by Dan Kennedy

In fact in my upcoming book, “Immediate Action Marketing: The Tactical Marketing Systeml”, I’ve listed Dan’s quote as one of the “10 Principles of Immediate Action Marketing.”

So what does this mean to you?

It means above all else you want to pay attention to the key metrics that measure ROI in your marketing campaigns and focus on the psychology of your target market when creating your marketing messages.

Let’s cover the numbers side first…

Without getting into too much depth, there are two key metrics you need to know in your business.  Both of these numbers are affected by your marketing strategy.

#1: Your Client’s Lifetime Value(LTV) (Actual and Potential)

#2: Your Client’s Cost Per Acquisition (CPA)

Here is a snippet from “Social Explorer” on the importance of knowing you cost per acquisition…


So why is Cost per Acquisition so important? Simple, it’s the quintessential metric for determining true return on investment. It doesn’t matter how many clicks or eyeballs a campaign receives, if it’s not generating revenue, it’s not successful. via Why Cost per Acquisition Is the Only Metric That Really Matters – Social Media Explorer

Here is a way for you to determine your cost per acquisition in your firearms training business…


There’s plenty of ways to determine your average revenue per customer, but a good starting place is to take your total revenue over a period (year/month) and divide by the number of customers you had during the same period. Average Revenue per Customer = Yearly Revenue/Yearly Customer Count

Sure there are other formulas that take into account purchase frequency, lifetime value and average order size, but honestly the formula above is the easiest place to start. Once you know how much an average customer is worth, than you can see what your average profit is.

When you know how much you make from a customer, then you can know how much you’re willing to spend to get a customer.

Armed with this number, take a good hard look at your current marketing initiatives. It should be pretty obvious which channels are creating profitable customers and which channels are costing you far more than they are worth. via Why Cost per Acquisition Is the Only Metric That Really Matters – Social Media Explorer

The other big metric you want to be aware of is the Lifetime Value of a Client.  You may have heard the phrase, “The money is in the list.”  There is a significant level of truth to this saying, but it goes beyond the number of names you have on your list.  What is more important is the quality of the list, more specifically the quality of your relationship with your list.

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Below is an example of how you can quantify the value of your list of clients.  You can also use this formula to determine the potential value of your prospects…


Take a moment to jot down the average amount a single client invests with you each year. Now multiply that by 20 years. Example: Let’s say a single client invests $2,000 per year with you. Twenty years x $2,000 = $40,000. Now, multiply that number by the number of referrals you could potentially get. Let’s say it’s just two per year. That’s an additional $80,000 in potential lifetime value, giving you a total potential lifetime value of $120,000!

This is how you should look at the economic value of clients (while also remembering that they are human beings who should be treated well). via The Phenomenal Potential Lifetime Value (PLV) of a Client

The Psychology of marketing boils down to the study of your target market’s buying and consumption behaviors.  You can increase you sales conversions by tapping into how your prospects and clients think.

Neil Patel of gives us 8 Psychological Triggers to help us double our sales!


Behind all great marketing, there is one thing…


When you understand your customer, you can understand how to create a great product for them and the best way to present it to them.

If your sales aren’t as high as you’d like them to be, it means you need to spend some time learning about how your customer thinks.

That’s where psychology comes in.

While psychology and marketing are two very different fields, that doesn’t mean that learning psychology can’t help you.

In fact, I think it’s one of the most important things a marketer can study. via 8 Psychological Principles That’ll Double Your Sales

So there you have it!

Two critical components you need to know and understand in order to make your marketing efforts more effective.

In my upcoming book you will get the “10 Principles of Immediate Action Marketing” (this is just one of them).  You will also receive a “turn-key marketing system” designed to maximize your clients lifetime value and increase your ability to spend more to acquire a customer (remember: the one who can spend the most to acquire a client WINS!)

Until next time…

Take Immediate Action!

Omari Broussard
Founder, Immediate Action Marketing

P.S. Don’t forget to get on the Notification List for my upcoming book!  Click here to get your name on the list.

Immediate Action Marketing Book Coming Soon