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?!

No comments:

Post a Comment

Note: Only a member of this blog may post a comment.

Common Development Attributes on a First Purchase

When you look at first-time buyers, there are certain attributes that lead to "development". Not all first-time buyers are created...