March 06, 2018

But Lifetime Value Is Lower, So We Should Avoid That Channel, Right?

This one comes up all the time in project work. A client measures LTV (good for them!) and learns the following:

  • LTV From Search = $30.00 profit.
  • LTV From TV Ads = $18.00 profit.
The Marketing Executive will look at me and say "We don't want the TV Ad customer, because her LTV is worse."

You want EVERY customer that generates a ton of downstream profit. Who cares if the TV-acquired customer is worth $12.00 less if the customer is highly profitable?

You don't care.

At.

All.

If the customer is worth less downstream, spend less on the customer downstream.

Don't overthink this stuff, ok?!

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