​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 newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.
Show Comments

Blog Posts

Why you can’t afford to fail at CX in 2019

In 1976 Apple launched. The business would go on to change the game, setting the bar for customer experience (CX). Seamless customer experience and intuitive designs gave customers exactly what they wanted, making other service experiences pale in comparison.

Damian Kernahan

Founder and CEO, Proto Partners

Natural born leaders

Many business and marketing managers progressing to leadership positions face evolving their focus from operational matters to strategic decision making and planning.

Jean-Luc Ambrosi

Author, marketer

Using artificial intelligence to surprise your customers

​We have expected artificial intelligence (AI) will become part of our everyday lives for quite some time.

Katja Forbes

Founder and chief, sfyte

Just printed out this Brad Howarth screed to read tomorrow. I need a good laugh once in a while. Or maybe shed some manly-man tears at th...

Larry A Singleton

What a diversity agenda has done for Kellogg's staff and innovation engagement

Read more

Morons. PC Nazis infiltrating and subverting every level in our lives.These scum have destroyed our education system.Read FrontPage Magaz...

Larry A Singleton

What a diversity agenda has done for Kellogg's staff and innovation engagement

Read more

It is an accepted fact that in the present times the mass makes use of digital marketing more often and are more and more enlightened wit...

Digital Marketing Course in Ja

Why RMIT is partnering with Adobe for digital marketing learning

Read more

If men were really the dominating brutes that feminist make them out to be ,then women really would be second class citizens. Without th...

aaron

Analysis: Gillette's latest ad only proves why brands standing for positive change is vital

Read more

In 2019 Augmented Reality plays a vital role in marketing campaign its new way to engaged user with digital content. Try Augmented Realit...

hill william

Predictions: 9 digital marketing trends for 2019

Read more

Latest Podcast

More podcasts

Sign in