Effective Performance Advertising 4/4: Customer Lifetime Value

This post is part of the series Crealytics Espresso Shot

Other posts in this series:

  1. Effective Performance Advertising 2/4: Incremental Value
  2. Effective Performance Advertising 3/4 : Measuring Revenue, Profit and ROI
  3. Effective Performance Advertising 1/4: Overview

Crealytics’ latest Effective PPC video has arrived. This series reveals game-changing perspectives on PPC advertising…in just a few minutes! Our final video in this series explains the concept of Customer Lifetime Value (CLV) – and why you should consider it in your ad campaigns.

Smart online retailers have increasingly adopted Customer Lifetime Value as a Key Performance Indicator. Taking a customer-centric view beyond the first conversion on follow-up purchases allows the business to grow aggressively…and aim for mid- and long-term profitability.

Today however,  budget and bidding decisions still center around Return on Ad Spend (or “ROAS”). This leaves Performance Marketers disconnected from Customer Lifetime Value. In this Espresso Shot, we shed light on why this gap is harmful and how it can be closed.

 

This Espresso Shot uses a simplified Lifetime ROAS model – however, Lifetime ROI is the preferred method for most online retailers. To understand the difference between ROAS and ROI, visit the third part of our series.

And remember, you can always get Crealytics’ latest insights sent straight to your inbox.

ABOUT THE AUTHOR


Alexander has several years of experience as an IT consultant and Product Owner in the e-commerce industry. Today he works as a Senior Product Manager for crealytics.

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