Thursday, May 17, 2007

Aberdeen Study Confirms Value of LTV Measures

I had truly intended to give lifetime value a rest, but then an email arrived from Aberdeen Group asking me to participate in one of their surveys on “customer value management”. You can fill it out too by clicking here and earn a free copy of the results. They’re asking all the right questions, although I wonder how many people can really answer them accurately.

Aberdeen’s “research preview” for the study certainly is pro-LTV. And I quote:

“Recent Aberdeen research indicates that Best-in-Class organizations utilize “customer lifetime value” metrics in modeling and predicting which mix of customers, products, sales, marketing or media channels will help them to best achieve revenue targets and goals. In contrast, average and lagging companies are apt to take a more short-term, transactional approach to marketing strategic planning. Specifically, the Best-in-Class are more than twice as likely to achieve a greater than 15% improvement in annual customer retention rates. The Best-in-Class also outperform average and laggard companies in annual increase in revenues and in achieving a return on marketing investment (ROMI).”

I guess that makes me feel better--although it doesn't really change the fact that most people don't want to listen.

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