A year later, we can look back and find out exactly what our retention, referral and spending rates were. We can improve our projections. We can try out new ideas on small segments of our customer database, either geographically or by spending segment. When we have made our mistakes and have learned what works, then we expand our strategies to larger segments of our customer base. Lifetime value analysis provides a basis for getting the annual marketing budget approved.
Advertising has to rely on awareness estimates.
Database Marketing relies on strong, specific, provable numbers which can be quite convincing to a CFO when he understands them. More and more companies today are using lifetime value analysis to test and improve their retention strategies. Database Marketing provides Customer Management and Internet Marketing services.