Amplified LTV from CLI
Written by Ken Johnson
Lifetime Value reporting that changes everything, again!
Acquiring new customers costs you money. How much can you afford to spend to find a new customer? To answer that question, you need to know both how much a new customer is worth to you and how long it will take to reach a payback. That’s where Amplified LTV from CLI becomes your valuable tool.
LTV analysis has been around for decades. Back in the stone ages before online marketing changed everything, direct marketers figured out LTV pretty well. As web marketing matured, savvy omni-channel merchants rushed to utilize LTV analysis as the backbone of their sales growth plans.
The secret sauce is in the matchback. If you can identify where your new customers come from, you can know the cost of acquiring them. Accurate attribution is the first key to amped up LTV. CLI delivers the right matchback products to pinpoint the appropriate marketing channel.
Matchback, however, does more than tell you where your new customers came from. It also tells you what they did after becoming your customers. Not all new customers bring the same value. Some sources bring in lots of names that do not perform well later. Other sources bring in fewer new names but result in great future customers. Reporting at the name source level is the second key ingredient in Amplified LTV from CLI.
Tying accurate attribution together with operational costs is another important part of Amplified LTV. We build custom reports with as many or as few operational costs as you want to include; marketing costs, order fulfillment costs, merchandise costs, processing fees, and more. Then, we combine it all in CLI OneSource and deliver your reports online, or you may download them to excel, if you prefer.
And don’t forget to consider Net Present Value (NPV) of your investment in finding new customers. The time that your money is tied up acquiring new customers is time that your money does not work to earn you even more money. If you cannot earn a significant return on your new customer investment in a reasonably short period, just buy bonds with your growth funds, because you’ll reduce the risk! We can incorporate NPV of your LTV investment, too!
That’s Amplified LTV from CLI. We help you understand your new customer acquisition costs and pave your way to a profitable sales growth trajectory.