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DLG
22 October 2008 10:55am
Would you select internet marketing applications that deliver solely high volume of new customers (cost-effectively) or would you invest resources in lifetime value analysis for customer acquisition? Why?
(Assuming I am an online retailer with an average online sale of £ 100)
OSS architect at hSo
23 October 2008 10:37am
I'd clearly initially focus on the high volume aproach as my end user market would perhaps only make this type purchase every year or two.
"Some Money now is othen worth more than potentially more money later"
What i then need is something to keep them as a customer in the interim, ideally a recurring rental component, or a supplies item for the £100 item.
Alex - which way would you go?
Stuart
On 10:55:11 22 October 2008 AlexT wrote:
DLG
23 October 2008 12:07pm
Stuart,
I would think that most companies would use the high-volume approach nowadays however all the research I have found lead to the investment in lifetime value and what the customer will be worth over a longer period.
I think that ultimately the question here relates to short versus long term marketing strategy. But again almost everyone would say (in theory) that long term view is necessary.
E-Business Consultant at Dan Barker
23 October 2008 14:00pm
hi, Alex, probably a stupid answer but: do both!
daniel