As a vendor, when you sit on a panel and share a stage with a brand as significant and successful as Domino’s you need to be happy to take a back seat! Which suited me down to the ground at Marketing Week Live as I was able to observe and learn as much, if not more, than the audience. The conversation with Karl Boyce, Domino’s Head of Digital and CRM, both before and during the panel, was both great fun and very interesting. After mulling it over, I think we were left with three primary conclusions.
Firstly, the focus on Customer Lifetime Value is here to stay and will only become more important over time. Evidence for this comes in the form of the recent report that RedEye have conducted in conjunction with Econsultancy, sister publication to Marketing Week Live. There are lots of takeaways from that document, not least the comparative stats that whilst 66% of organisations don't use CLTV as a measure, 77% nevertheless feel that it is important and a focus for the future.
But instinct also suggests that it must develop in its importance for marketing. CLTV has meaning at all levels of a business; from Board level where it’s an easily understood measure of the business performance, indeed a metric on which businesses can be valued, through to the Marketing Exec who can use it to both focus on truly meaningful strategies as well as measure marketing performance in a way that others can understand and appreciate. Changes in the market place are, I believe, making CLTV critical as a business KPI.
Secondly, it is with the data that, as Karl attested to, the journey begins. For Domino’s it was the development of a Single Customer View that was the first major building block. Once that is in place customers can be broken down into where they sit on the customer lifecycle (prospect, single buyer, multi buyer etc). This creates sensible business targets, and strategies can be built around these key moments. And it is my view, that success (or failure) around these customer lifecycle targets, can best be measured using CLTV.
Thirdly and finally, and this is also recognised in the report, data is also the primary barrier for those who want to use CLTV as a meaningful KPI. However, technologies such as the Customer Data Platform are giving marketers the ability to coordinate customer data like never before. Predictive Analytics is driving insight and understanding in new ways and with Artificial Intelligence there is the capability to deliver 1-2-1 communications in ever-more complex ways. The tools are out there to make your data work harder!
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