150-200 word response with APA citation from the below writing:
Marketers use metrics to “explain phenomena, diagnose causes, share findings, and project the results of future events” (Farris et al., 2016). When it comes to metrics, it is important to understand whatexactly marketers are measuring. When looking at metrics, marketers can identify where their customers are from, what kind of device they are using, and which browser they are using. Additionally, some platforms give marketers the advantage of knowing their customers age, interest, and previous buying behavior. “The more you know about your customer, the better you can serve” (Erhart, 2016).
During the video, Adam talks about five specific metrics that can help business track consumer behavior. However, one metric that caught my attention was Customer Lifetime Value (CLV) which Adam mentioned to be one of the most challenging metrics . CLV is the “average amount of money your customers spend on your business over the entire time of the relationship”(The importance of customer lifetime Value (clv) and how to calculate it, 2019). This is an important metric because, the higher the number, the greater the profits your business will acquire. When you know your customers lifetime value, it gives your business a benefit for future digital marketing campaigns. Once a business has calculated the CLV, marketers are able to make marketing campaign and sales strategies that will be more effective for their business. One of the best strategies is for business to invest more time and money with existing customer relationships. Additionally, businesses are able to retain their customers through email marketing, SMS marketing, social media marketing, and more.
Overall, Customer Lifetime Value is very important, it impacts customer retention rates, and it helps reveal the level of brand loyalty your company commands. If a company knows how valuable their customers are to their business, they will be able to know how much to spend in order to acquire new customers.
References
Erhart, A. (2016, June 9). Digital Marketing Analytics – Why It Is Important To Understand Your Metrics [Video]. YouTube. https://www.youtube.com/watch?v=PN7KfMfj__o
Farris, P. W., Bendle, N., Pfeifer, P. E., & Reibstein, D. (2016). Marketing Metrics: The Manager’s Guide to Measuring Marketing Performance. Pearson Education.
The importance of customer lifetime Value (clv) and how to calculate it. (2019, January 15). Retrieved May 12, 2021, from https://www.crazyegg.com/blog/customer-lifetime-value/#:~:text=Customer%20lifetime%20value%20is%20important,value%2C%20you%20can%20improve%20it.
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