Consistency is key when it comes to digital marketing. It's not enough to launch a campaign and then forget about it. In order to truly succeed in the digital space, businesses must continuously invest in their digital marketing programs. This means consistently monitoring and optimizing campaigns to ensure they are effective and delivering results.

Gina Martinez

Gina Martinez

Oct 14, 20233 min read

0

Consistency is key when it comes to digital marketing. It's not enough to launch a campaign and then forget about it. In order to truly succeed in the digital space, businesses must continuously invest in their digital marketing programs. This means consistently monitoring and optimizing campaigns to ensure they are effective and delivering results.

One important aspect of digital marketing that should never be overlooked is the measurement of key business metrics. Metrics such as the Cost of Customer Acquisition (CAC) and Customer Lifetime Value (CLV) are crucial for understanding the effectiveness of marketing efforts and making informed decisions.

The Cost of Customer Acquisition (CAC) is a metric that calculates the cost spent on acquiring new customers. By dividing the total marketing expenses by the number of new clients acquired, businesses can determine the CAC. For example, if a company spent $8000 on marketing in September and acquired 40 customers during that time, the CAC would be $200.

However, it is important to note that CAC should always be measured in conjunction with the Customer Lifetime Value (CLV). CLV is determined by multiplying the average value of a sale by the number of repeat transactions and the average retention time. This metric helps businesses understand the long-term value that each customer brings.

When evaluating CLV, businesses can identify profitable client segments and prioritize their efforts on the most rewarding audience. By understanding which segments bring in higher profits, companies can let go of clients who are decreasing net profit and focus on those that are more valuable.

Calculating CLV depends on the specifics of the product or service being offered. Factors such as the frequency of purchases and the average retention time play a role in determining CLV. For example, if a company sells products on a monthly basis, the CLV calculation would consider the average value of a sale, the number of repeat transactions within a month, and the average retention time in months.

In order to improve CLV, businesses can analyze and evaluate the Customer Lifetime Value of various client segments. By identifying which segments are more profitable, companies can allocate their resources and efforts accordingly. This may involve letting go of clients who are not contributing to net profit and focusing on the most rewarding audience.

Overall, businesses should never stop their digital marketing programs. Consistency is key, and investing in digital marketing efforts is essential for staying competitive in today's digital landscape. By continuously monitoring and optimizing campaigns, and by measuring key business metrics such as CAC and CLV, companies can make informed decisions and drive sustainable growth.

In conclusion, here are three actionable pieces of advice for businesses looking to improve their digital marketing programs:

  • 1. Continuously monitor and optimize campaigns: Digital marketing is not a set-it-and-forget-it strategy. Regularly review and analyze campaign performance, and make adjustments as needed to ensure optimal results.
  • 2. Measure and evaluate key business metrics: Metrics such as CAC and CLV provide valuable insights into the effectiveness of marketing efforts. By measuring and evaluating these metrics, businesses can make informed decisions and prioritize their resources.
  • 3. Focus on profitable client segments: By analyzing CLV, businesses can identify which client segments bring in higher profits. Let go of clients who are not contributing to net profit and focus on the most rewarding audience.

By following these pieces of advice, businesses can build a strong and effective digital marketing program that drives growth and success in today's competitive landscape.

Resource:

  1. "12 Business Metrics That Every Company Should Know | Scoro", https://www.scoro.com/blog/12-business-metrics/ (Glasp)
  2. "Never Stop Your Digital Marketing Program", https://www.brickmarketing.com/blog/stop-digital-marketing (Glasp)

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