If you're like a lot of companies, you focus on the moment when a prospective customer converts to a customer by clicking on the "buy button."
And while that might provide some insight into your short-term success prospects, it probably isn't going to tell you much about whether or not you are positioned for long-term, sustainable success.
For that, you to adjust your measurement strategies--you have to focus on the lifetime value you're delivering to customers.
Lifetime value transcends the simple, singular sale. It involves meeting your customers' needs more effectively and efficiently than the competition. It involves making sure your customers--and prospective customers--are seeing the right messages at the right times in the right place.
Here's a look at how you can adjust your measurement strategies to focus on what really matters--lifetime value:
Get organizational buy-in
You probably can't build a better marketing mouse trap without the support from leadership. After all, it's likely you're going to have to update infrastructure that makes data collection, storage and analysis easier. You'll also need to train analysts to use new reporting tools--tools that focus on lifetime-value metrics.
So start by getting your leadership to buy-in and the process will be a lot easier.
Segment your audience
Now you have convinced the company to measure what matters most--lifetime value of customers-- and it's time to start segmenting your audience based on their buying habits, engagement, demographics and psychological data (among other metrics).
Once you have your audience segmented, it's time to start developing new metrics--metrics that allow you to measure what truly matters.
Make new metrics
How much is a customer worth? If you're like a lot of companies, you measure a customer's worth with a dollar amount, which is fine--for now.
If you really want to understand a customer's true value, you need to make new metrics, metrics that measure:
how a customer (or prospective customer) interacts with your brand
how prospective customers feel about your brand
how satisfied, paying customers feel about your brand.
These are only a few of the metrics you need to measure that will allow you to find out a customer's lifetime value--and understand how you can deliver lifetime value to your customers. A digital marketing agency with experience in measurement strategies can help you flush out other useful metrics.
Use the data
It has been said that what is monitored is measured. So use the data you have collected.
Your new metrics will allow you to gather quantifiable data based on what really matters. It also allows you to know position yourself as the go-to business for customers who may not be ready to buy now--but will be in the future.