​Report: Sharper customer lifetime value measurements attract bigger marketing budgets

New research reveals marketing leaders who quantify lifetime customer value more accurately are more likely to see a boost in marketing budgets

Marketing leaders who can demonstrate accurate measurement of the lifetime value of customers and the impact of marketing activities on customer retention are most likely to succeed as influencers and get bigger budgets, a new report found.

The Telsyte whitepaper, Digital Leaders use Customer Journey Maps to Guide Business Transformation, sponsored by SugarCRM, surveyed 255 CMOs, marketing directors and other marketing decision makers from Australia and New Zealand in organisations with more than 100 employees to understand their attitudes, experiences and budgeting consideration for the Australian financial year commencing July 2015.

It found marketers who stated that their teams “always measure the lifetime value of each customer” and “always measure the impact of marketing activities on customer retention”, on-average received a 16 per cent increase to their marketing budget year-on-year.

Marketers who said only “often measure the lifetime value of each customer” and “often measure the impact of marketing activities on customer retention”, reported just a 4 per cent and 2.4 per cent on average marketing budget increase, respectively.

Those marketers who said they don’t measure either the lifetime value or impact of marketing activities reported an unsurprising zero per cent increase in marketing budget. Alarmingly, the research showed a third or more organisations still do not measure customer experience, customer lifetime value or use personalised marketing.

The report also highlighted the true priority of customer journey maps in today’s marketing mix. While a majority 75 per cent of Australian and New Zealand marketers in large organisations said have customer journey maps, 45 per cent admitting they rarely use them.

According to Telsyte managing director, Foad Fadaghi, marketers most skilled at measurement are being elevated in many organisations with both better funding and typically more stature.

“The CEO of the future will be data driven, and measuring, understanding and communicating customer data and insights is a critical part of this,” he said.

Follow CMO on Twitter: @CMOAustralia, take part in the CMO conversation on LinkedIn: CMO ANZ, join us on Facebook: https://www.facebook.com/CMOAustralia, or check us out on Google+: google.com/+CmoAu

Join the CMO newsletter!

Error: Please check your email address.
Show Comments

Supporting Association

Blog Posts

Why 2017 will herald a resurgence of values-based marketing

It doesn’t take long for predictions to become predictable: The rise and rise of Facebook; advancements in analytics; the normalisation of chatbots; personalisation, programmatic, automation, authenticity… The prediction that’s missing from these lists is that in 2017 we will witness a resurgence of values-based marketing.

Jacqueline Burns

Founder, Market Expertise

Why customer experience driven growth is set to take off

Our overall brand perceptions are invariably shaped by our experiences. And loyal customer relationships can be severed in moments by a negative service interaction.

Consistency and conversation: How branding and advertising can work better together

Advertising and branding are two of the most visible outputs of marketing, which is why getting them right is so important. However, too often the line between branding and advertising becomes blurred. This means advertising activity can be out of sync with brand, resulting in poor results for both functions.

Dan Ratner

managing director, uberbrand

Someone needs a swift kick up the bum for such an idiotic idea.

random

​Why a degree is no longer enough to get you hired as a skilled marketer

Read more

The frequent flyer programs are the new profit machines for airlines all over the world, as they have morphed to be mass marketing machin...

Steve@iFLYflat

Velocity frequent flyers program strong performer in mixed half-year for Virgin

Read more

Hi Jennifer, thanks for sharing these info regarding the digital marketing trends.I've created a related video to this topic, would you m...

Fabio Carry

Predictions: 17 digital marketing trends for 2017

Read more

Great news. Marketing automation can be very useful for companies at various stages of development. With so many tools out there it's bet...

Ben

How HBF rolled out marketing automation in eight months

Read more

I read a report that the business sector in Australia as a whole have yet to fully harness and see the proactive change that predictive a...

Alex Martin

Report: Predictive analytics, IoT, machine learning battle it out for marketing dollars

Read more

Latest Podcast

More podcasts

Sign in