Develop customer lifetime value models to optimise marketing spend
Using customer lifetime value models helps you allocate your marketing budget in the most effective way. You’ll know which customers are worth investing in and can tweak your spending to maximize profits. While it requires good data and can be complex, the insights gained can save money and time in the long run.
Tools
| Name | Description | Pricing | Ease of Use |
|---|---|---|---|
| Salesforce | Salesforce is a leading customer relationship management (CRM) platfo… |
Paid Only
from $25.00/mo
|
Moderate
|
| Salesforce Marketing Cloud | Salesforce Marketing Cloud is a robust digital marketing platform des… |
Paid Only
|
Moderate
|
| Segment | Segment is a leading customer data platform that empowers marketing p… |
Paid Only
|
Moderate
|
| Totango | Totango is a leading customer success platform designed to enhance cu… |
Paid Only
|
Moderate
|
Objectives
| Name | Description |
|---|---|
| Customer Acquisition | Customer Acquisition is the process of attracting and converting new … |
| Retention | Retention in marketing focuses on keeping existing customers engaged … |
| Sales | The marketing objective 'Sales' focuses on increasing revenue through… |
| Trust and Loyalty | Trust and loyalty are crucial marketing objectives that underpin long… |
Demographics
| Name | Description |
|---|---|
| Entrepreneurs | Entrepreneurs are typically characterized by their innovation, risk-t… |
| High-Income Earners | High-Income Earners are characterized by their significant financial … |
| Professionals | Professionals are a diverse group typically aged 25 to 55, marked by … |
| Small Business Owners | Small Business Owners are a vital demographic characterized by their … |
| Tech Enthusiasts | Tech Enthusiasts are a dynamic demographic known for their passion fo… |
Promotes
| Name | Description |
|---|---|
| App | The 'App' is a cutting-edge digital platform crafted to enhance user … |
| Brand | Brand represents the unique identity of a business, encompassing its … |
| Digital Product | A Digital Product refers to an intangible asset distributed in digita… |
| Mobile App | The mobile app is a dynamic digital tool that marketers utilize to ef… |
| SaaS | Software as a Service (SaaS) is a cloud-based service where instead o… |
Sectors
| Name | Description |
|---|---|
| Financial Services | The Financial Services sector is a vital part of the global economy, … |
| Healthcare | The Healthcare sector is a critical pillar of the global economy, enc… |
| Hospitality and Leisure | The Hospitality and Leisure sector encompasses hotels, restaurants, t… |
| Information Technology | The Information Technology (IT) sector is integral to the global econ… |
| Insurance | The Insurance sector is a critical part of the financial services ind… |
Strategy
| Name | Description |
|---|---|
| Customer Retention Strategies | Keeping customers loyal involves personalized communication, rewards,… |
| Data-Driven Marketing Strategies | Using data to guide marketing decisions helps target the right audien… |
| Loyalty and Rewards Strategies | Encouraging repeat business through loyalty programs and rewards can … |
Sub-strategy
| Name | Description |
|---|---|
| Customer Loyalty Strategy | Encouraging repeat business through rewards, excellent service, and p… |
| Big Data Analytics Strategy | Using large amounts of data to understand customer behavior and impro… |
| Customer Insights Strategy | Understanding customer behavior and preferences to tailor your market… |
| Data Analytics Strategy | Leveraging data to make informed business decisions, improve performa… |
| Predictive Analytics Strategy | Using data and algorithms to forecast future trends and behaviors, a … |
Technologies
| Name | Description |
|---|---|
| Email Marketing & CRM |
Channel
| Name | Description |
|---|---|
| Email marketing is a versatile tool for reaching both businesses and … |
Sub-channel
| Name | Description |
|---|---|
| Drip Campaigns | Drip campaigns are a smart way to stay connected with your audience o… |
| Newsletters | Newsletters are an effective way to keep your audience informed and e… |
| Promotional Emails | Promotional emails are a direct way to reach customers with targeted … |
| Transactional Emails | Transactional emails are a reliable way to engage with customers thro… |
Quick Facts
Channel
Advertising Type
Difficulty Level
Intermediate
Estimated Cost
Medium
Time to Impact
Short (Weeks)
Tags
B2B
B2C
Pros
- Increases profitability by focusing on high-value customers and optimizing resource allocation.
- Improves customer retention by identifying and nurturing loyal customers.
- Enhances targeting by providing detailed insights into customer behavior and preferences.
- Reduces acquisition costs by focusing on the most profitable segments.
- Enables personalized marketing by understanding customer lifetime value and tailoring interactions accordingly.
- Boosts customer satisfaction by aligning marketing efforts with customer needs and preferences.
- Facilitates long-term planning by forecasting future revenue and customer behavior patterns.
Cons
- Requires substantial data to be accurate, which may not always be available or easy to gather.
- Complex to implement and may require specialized skills and software.
- Time-consuming to develop and maintain the models consistently.
- Potential privacy concerns if data is not handled properly, leading to trust issues.
- Initial costs can be high due to the need for advanced analytics tools and expertise.
- May lead to over-reliance on data, potentially ignoring intangible factors or unique customer situations.
- Can become outdated quickly if consumer behavior changes rapidly, requiring constant updates.