In the fast-changing world of digital marketing, it can be difficult to think long term. No other industry changes as fast as digital marketing. However, there are some keys to getting the most out of your paid marketing over the long haul.
Long-Term Customer Value
How long does the average customer stay with your company? Three months? One year? Smart marketers know the exact cost of acquiring a customer from online marketing and mobile web advertising campaigns. This cost is easy to determine once you know the potential income from a typical customer over the long term. After you know the profit per customer, you are more likely to look at paid marketing and performance marketing ideas that may not be very profitable in the beginning, but provide solid long-tern ROI.
In the end, increasing the value of your paid marketing channels over the long term is a matter of making better use of what you have in place already: Review data to find emerging trends, stay in touch with active and engaged colleagues, and use new technology to help increase long-term customer value.
Is your Average Revenue Per User (ARPU) increasing every month? This is a key metric to track because it shows you the source of your revenue streams and is a good barometer showing if you are on target to meet revenue goals. The more you increase you ARPU, the more likely you have been able to sell more services to each client.
In effect, it is much more cost effective to keep and grow current customers than to focus relentlessly on new business. Many firms realize the cost of getting new customers in the door is substantial. It’s more advantageos to pay attention to increasing the revenue for each user.
To increase the ARPU, make sure the back end offers are substantial and appealing. Upsell and cross sell clients into higher-priced services that offer more value to them, while not costing much more on your end. Your firm may need to brainstorm to develop additional products and services to offer, especially if you are a startup or growth company with a limited product set.
Still, all businesses need a certain amount of new customers to stay healty. To that end, it is critical to maximize the yield optimization of your paid marketing channels. This can be done by constantly changing your marketing mix with a blend of premium and value advertising. Premium slots deliver the high quality clients you want, while value-based placements increase reach and effectivenes with little added cost. Communicate with your marketing channel representatives to find the content that will meet your brand and image goals. At the same time, invest in stragegies that maximize value and efficiency. It’s not a “set and forget” propoisiton. You need to constantly communicate and innovate with marketing partners to get the best results.
Increasing the long term value of your marketing channels is primarily an exercise in retaining current customers with new and attractive products that encourage them to spend more each month. At the same time, new client strategies must focus on a blend of premium and value advertising to get the the greatest yield optimization from the same ad spend. All of this can be done with constant communication with channel partners, staying on top of current yields, and being alert for short-term opportunities.