The Last Step For Success (cohereone.com)

In the last two blogs written by Michelle Houston, she covered the importance of using Contribution Per Order (CPO), instead of ROAS when evaluating the performance of marketing programs. At the end of one of those blogs, she talked about the importance of also assessing and understanding the significance of lifetime value (LTV) as part of the equation. I wanted to continue that thread and take it a step further by incorporating LTV as the last step of the proper analysis into the equation.

As covered in past discussions, LTV is an important metric to track as it will vary widely by acquisition source. When applied to the first order for a new customer, CPO is the equivalent to cost or profit per customer acquired. This will vary by acquisition source as well. When CPO is combined with LTV, those metrics are a powerful tool in driving your company in the right direction (or wrong direction if you’re not careful).

In the analysis below, we can evaluate the total effect that CPO and LTV have on the current and future business. That effect allows you to make educated decisions on where to place marketing budgets to set the business up for success. If evaluating acquisition cost/contribution in a vacuum, the data would indicate cutting all postal since it lost -$12 on the initial order and redistribute to SEM non-brand, email, and social, which are marketing channels that can leverage the additional marketing spend.
much more at source: https://cohereone.com/the-last-step-for-success/?utm_medium=email&_hsmi=90240338&_hsenc=p2ANqtz–9zmFiEtQe8OsNq_N9mTWn9LDyJNAxc8JKvcNau2SmvbxKDD043pScjVQzmVLOFF7jFcUxyXhlvfMuNk-XC7blfUg5VIfo35U3I1PNSGUJfuh0Lb4&utm_content=90240338&utm_source=hs_email

Related Posts

Congress wants the FTC to create a bureau dedicated to privacy. And that’s a big deal (marketingbrew.com)

Yes, the rumors are true—the United States might actually get a federal privacy law. Introduced in June, the American Data Privacy Protection Act (ADPPA) actually has bipartisan support, though there are a few kinks to work out. But one section of the bill, which is now eligible for a floor vote in the House, could fundamentally change how consumer privacy is protected and enforced in the US: the proposed creation of a Bureau of Privacy, which would be a part of the Federal Trade Commission, broadening the scope and definition of how the regulator could enforce the law. “It would dramatically elevate the profile of privacy in this country and the agency internationally,” Daniel Kaufman, a partner at BakerHostetler who previously held several roles at the FTC’s Bureau of Consumer Protection, said during a LinkedIn Live hosted by the International Association of Privacy Professionals (IAPP). “It’s almost limitless in terms of what the FTC can do.”

RRD Survey: Marketers Turning to Proven Channels and Strategies

A study released today by R.R. Donnelley Sons & Company (RRD) revealed that marketers' preference for channels with proven return on investment more than doubled over the past year (38% compared to 15%). The Modern Marketers Report found that economic uncertainty, increasing privacy concerns, and consumer fatigue toward marketers’ digital strategies are driving the resurgence of “tried and true” marketing channels. In addition, managing vendors was reported as a more common top organizational challenge this year than it was in 2022 (23% compared to 7%). The Modern Marketers Report, the company’s fourth annual marketing industry report, compares 1,000+ US consumers’ purchasing behaviors and preferences and attitudes toward brands’ marketing tactics with how 500+ U.S.-based marketing professionals are planning, executing, and adjusting their strategies. “During the holiday shopping season, consumers are thinking twice before they open their wallets or provide their personal information to receive deals,” said Al duPont, Chief Commercial Officer at RRD. “Results from our latest report show that marketers pairing their most reliable channels with positioning that blends convenience and savings stand the best chance for fostering customer loyalty in an increasingly competitive market.”

RRD Survey: Converging Macro Trends Drive Marketers to Tune Up Channel Strategies

A study released by R.R. Donnelley & Sons Company reveals marketer perceptions of macro trends impacting today’s consumers, which in turn influences the approach to reach them. The Macro Marketing Reportshowed primary concerns include shifting of buying power to new generations (89%), ESG-related concerns (84%), a changing political climate (80%), and workforce changes (78%). The company’s third annual marketing industry report found that while marketers are embracing new channels, such as the metaverse, they are also looking for innovative ways to leverage more traditional approaches. Marketers are turning to direct mail to engage with today’s digitally fatigued consumers, with nearly three-quarters (73%) reporting direct mail has either kept the same level of importance or increased in the last year.
Back To Top
×Close search
Search