A Marketing Metric You Need To Track | Bathroom Break #115

0:07Welcome to a new special series called The Bathroom Break. That extra 10 minutes you either have to listen to marketing tips or use the bathroom or both. But I don't recommend both, but that's your choice. This collab is going to be super fun. We have Daniel Murray from the Marketing Millennials and me, Jay Schwetelson, from the Do This Not That podcast and subjectline.com. each episode in the series. We are going to go over quick tips about different marketing topics. And if you want to be in the bathroom, fine. Just don't tell us about it. Thanks for checking it out. We are back with another bathroom break.

0:42I am here with the keynote speaker, best-selling author, number one podcaster in the world, Jay Schwerdlson. Do This Not That podcast. And I am Gamer of the Mark Malengos. And I actually have a question for you because I've actually never asked you this question. Like, are you a theme park guy? Like, do you like roller coasters? Do you like going to theme parks? Do you use your kids to theme parks? It's an excellent question. First of all, I can't go on any ride that goes in any formation of a circle because I'll throw up. I can't go on a merry-go-round. I can't go on anything that goes, a loop-de-loop, forget about it.

1:20Vomit instantly, vomination. but I really do like going and playing carnival games. I like winning stuffed animals that are both awkward, weird, smelly, and are poorly designed. I just like winning them. I also like funnel cake. Do you like going to theme parks? We went from theme parks to carnivals. Yeah, carnivals. I like carnivals. That's what I like. I like that. I used to like theme parks. I think theme parks are a good time, but I did have this experience I went to Six Flags in Texas with my cousins when I was living in Texas and it was like really hot and I like forgot to eat in the morning and I went on a roller coaster and I square I like blacked out for two seconds and then after that ride I thought I was gonna faint and I was like it was so hot I didn't know where to go and I went into this restaurant and the line was so long so i was like to my cousin please go get me something and i sit down the chair these people leave their fries on the table take their fries i was about to i swear i was about to pass that so now i'm not afraid to go to theme parks after that on roller coast you ate somebody else's fries at a theme park that is gross i have another random question with you because you're like six five you're you're a big tall dude have you ever tried to get on a ride they're like you're too big no but i've had the little like jam in there i ain't just i remember also another story about i you know those like the drop rides oh i will not do that there's your land there's like a tower of terror you say no way i'm doing that yeah i went in there when i was like 10 years old and my clip didn't go but my my dad was saying and i was at wind luck so i was flying around i see my dad's like holding me down no way and i'm never going on a ride like that again so ptsd from theme parks i just want to ask don't wow you're yeah next level all right so what we're talking about today is not just theme parks we're talking about something called blended cac you know ever since i got to know daniel been talking about marketing stuff i don't think every third conversation daniel somehow slips in there yeah but blended cac is where it's at.

3:33That's my whole thing. It's Blended CAC, whatever. And I want to talk about what does that mean? What does it mean for marketers? Why is it something that's always on your mind? Can you like first break down what it means? Yeah. So Blended CAC is like the customer acquisition cost of all your channels, like combined. So each you, people are probably measuring it. If you are like your customer acquisition costs of Meta, Google, whatever channels you're running, I believe that you should have a blended number that you come up with in your organization that if we hit this blended CAC, we're okay.

4:14So I say this, like it costs$20 to acquire, costs more,$30, however much a product costs, come up with that number. And if you stay under your blended CAC, you're pretty much safe to go and keep spending. And the reason why I think about this is, and we talk about this in a lot of podcasts, is attribution lies. Attribution doesn't tell you the truth. It will say that Meta and Google are doing better. Usually, like, Google looks better because you have branded keywords that you are betting against that have a way higher CAC because people know who you are. But that's not even, they didn't get, they knew your name somewhere else.

5:00So I also believe you need to separate blended CAC on Google. I'm not blending CAC, but CAC on branded search keywords and just keyword search in general when you're betting on Google. That's a whole other conversation. But I like this number because it gives you room to know I can go do another channel to spend more if my blended CAC's okay. And if it rises above, then we reevaluate what channels aren't performing and not performing, pull back somewhere. but I like that number just as a way to keep my marketing in check and also not be beholder to one channel all the time. So I would say, and I fall in this camp, which is probably not a good thing, what I do is very siloed.

5:42I look at each channel or each platform unto itself. I even separate that within Meta. Here's how Facebook's doing. Here's how Instagram's doing. Here's how LinkedIn's doing. Here's how email's doing. Here's how this is doing. You look at them all separately, and then what I do, which is a bad idea probably is, oh, okay, you know, Reddit's not doing that great. I'm going to take budget from Reddit. I'm going to put it more towards over here, which is doing really well. So do you not look underneath the hood and you kind of give each of these platforms and channels kind of more legs to run a longer period of time?

6:16Do you think it's a mistake to kind of be looking at everything siloed? No, I think you need both. I think to measure every channel in a silo, just to know what the number is. And if like, because you're in the silo and you know like if meta goes up too high, like something's happening in meta, if IG goes up too high, something's happening in Instagram, if Reddit goes up, you have to get a baseline of what those channels are for who you are. But we talk about this all the time, like you run a brand campaign and then someone sees your meta ad, they convert a meta and then your meta looks better.

6:59Or you could do a Reddit ad. They see a Reddit ad on Reddit, they buy on Google or they type your name on Google. And those channels just start uplifting. Sometimes you turn off the faucet of another channel and then you see blended cat go up and you start turning off another channel and another channel. But it's probably because you turned fully off a channel that was meant, that was helping you get branding, search keywords, meta keywords, I mean, meta conversions, email conversions, whatever you're looking at. So that's why I like to look at Blended CAC because Blended CAC gives a whole number of your whole marketing picture.

7:39And it makes you think, okay, like I don't have to fully shut off Reddit right now, even if it's higher than I expect, because I know maybe Reddit's a longer term channel for me. I don't have to pull back here that much. But the silos help because if MetaCAC goes higher, you can start self-diagnosing each channel and say, okay, MetaCAC the last three months was this, and now it's gone up 20%, 30%. Maybe something's happening in Meta. Maybe my ads are, there's ad fatigue. Maybe there's, we need a prospect better. Maybe our retargeting ads aren't doing good. whatever you can diagnose each channel by that but blended character lets you play marketing activities that will help you build longer term pipeline in the future not today so let's say for example right now you know chat gpt now allows you to run ads right yeah and you're like listen we we're going to bring that on as a new silo a new platform a new whatever out of the gate if it's something that new like that will you just have that be part of your blending hack or something that's net new, like your organization has never done Reddit or ChatGPT or ads on whatever, do you have it live on its own before it joins the party in the blended CAC land?

9:00Like you have a separate thing just for testing? But I do think like 20 % of your budget should always be for testing. And I wouldn't mark it as a test budget and let it run for a longer period of time. But I will see, because it is still overall spend to acquire a customer. Like you spending, like blended CAC is like taking your overall marketing spend and then how much it costs like how much it costs to acquire that customer and your channel so like if you're siloing that then you're like missing like the whole picture and then some people measure cac differently like they measure like the employee costs in the marketing department the the software like the tools whatever i like to do the channel part and then you could do another calculation of like that too of your department but yeah i would always put any channel i put in and blend the kag and but i don't think that because the spend is so low i don't think that would affect blend the kag that much because like if you're spending 5k in chat chat gbt and 100k meta that's not really going to throw it might raise the blend the kag by a little bit it shouldn't do much that's why keeping in the numbers are going to really affect it.

10:14If you decide to blow 50 % of your budget, that you'll see a big change in blending the cack. All right. Well, let me go back to the original topic of, let's go to carnivals. Forget about theme parks for a second here. Are you, will you eat food at carnivals? Will you go? Will you get funny cake? Will you eat a hot dog? Or do you think the carnival food is disgusting? We use a carnival bathroom. What carnival game are you good at? Do you like throw the little circle thing and you win a fish. Like, what is your deal at a carnival? I like carnival food. I think they belong like once a year because you might get a heart attack.

10:51But I do like a funnel cake. I do like, I know you're probably going to hate this, but like one of those big turkey dogs, like it's for turkey legs. But what is the turkey leg thing? I don't understand. How did that start? First of all, nothing is worse than walking around Disney World and you see something with a big turkey leg. I'm like, what are you doing? It's not Thanksgiving. It's different than a carnival, though. Like a carnival is like, it's worse than a carnival. I know. I think it's better at carnival. Where do you think they're getting a turkey leg from? It's getting from like someone's toilet.

11:18I mean, where do you think it's coming from? But I do like a funnel cake. I do. I do like trying something that's exotic, but I won't touch like a, a deep fried Snickers or something like that. Like a fried Oreo. That's the best. Oreo is different. Fried Snicker. What is the difference? Would you eat like deep fried butter? Would you eat a deep fried? I want to try that. I want to try that. I saw that. I want to try that. But when I went to the roller coaster combo, you went straight to Carnival in your head. I don't know what you're doing. You live in Florida, and you have Disneyland in your house.

11:53You're Captain Harry Potter. You want to go get whatever is beer, butter, batter. Oh, actually, I did go to. I have been to Universal. I'm sure you have. I had the butter beer. I've had it. What's fun? I think that's fun. It's too crowded. Too many people. You hate to run on. It's like a marketing conference for you. Yeah, I don't know. Avoid people at all costs. What if a marketing conference has had like deep fried Oreos and turkey legs? That booth would probably be the most popular booth ever. Deep fried butter? I mean, that's my ICP right there. Well, once again, we've covered the most important topics in the world.

12:33I don't know what they are, but go and follow the Marketing Millennials. Go and follow Do This Not That podcast and go crush it this week. Daniel, come on, man. I got to get back to work. Get out of there. All right. While he's still in there, this is Jay. Check out my podcast, Do This, Not That for marketers. Each week, we share really quick tips on stuff that can improve your marketing and hope you give it a try. Oh, here's Daniel. He's finally out. Back from my bathroom break. This is Daniel. Go follow the Market Millet podcast, but also tune into this series. It's once a week, the bathroom break.

13:07We talk about marketing tips that we just spew out and it could be anything from email, subject line to any marketing tips in the world. We'll talk about it. Just give us a shout on LinkedIn and tell us what you want to hear. Peace out. Later.