Check out this presentation with Marketo and CAKE on how your business can achieve the golden metric!

1. The Golden Metric
Customer Lifetime Value
Santi Pierini, CAKE
Mike Stocker, Marketo

2. Housekeeping
 This webinar is being recorded – the slides and recording
will be sent to you after the webinar is over
 Ask you questions in the chat box – we will do a Q&A
session later
 Feel free to tweet during the session!
– #mktgnation
– @spierini
– @michaelstocker

3. Meet the Speakers
Santi Pierini
President
Mike Stocker
Director of Business Development

4. Agenda
The Marketing Challenge
The Anonymous
Customer Journey
Calculating Customer
Lifetime Value
Case Study: Redstone
Q&A
1
2
3
4
5

5. $137.5B
In digital advertising spent in 2014
We are spending a lot of money on
digital advertising
Source: eMarketer, October 2014

6. “82.2% of marketers do
not have the ability to
measure cross-channel
performance or return
on investment.”
Laurie Sullivan
Multichannel Marketing

7. The Digital Marketing Challenges
 Dealing with Fragmented Tools & Data Silos
 Limited Visibility into the Customer Journey
 No Ability to Measure Cross-Channel
– No Digital Marketing Effort ROI
– No Customer Lifetime Value
– Lack of Lifecycle Marketing
“82.2% of marketers do
not have the ability to
measure cross-channel
performance or return
on investment.”
Laurie Sullivan
Multichannel Marketing

8. 60%* of the Customer Journey occurs
before they have spoken to sales
*Corporate Executive Board

9. Where to begin?…

10. Where to begin?…
Anonymous Customer Acquisition
provides deep insights across the
customer journey by measuring
cross-channel cost and performance
Tracking:
All Digital Channels
Attribution:
Multi-touch Conversion Attribution
Optimization:
Performance Targeting
Integration:
Mktg Automation, Search, Display, etc.

11. Anonymous Customer Acquisition
Tracking, Attribution, Optimization & Integration
Mobile
Display
Video
Social
Search
Shopping
Affiliate
Engagement
Anonymous Customer
Acquisition

12. The Golden Metric – Customer Lifetime Value

13. Think about Customer Lifetime Value as a gym
membership…
Gym Membership Alone
Revenue
Contract Length 23
Monthly Charge $25.00
Membership Revenue $575.00
100% Revenue $575.00
Retention Rate 50%
Discount Rate 5%
Customer Lifetime Value $522.73
CLV = Profit ($) * Retention (%) / (1 + Discount (%) – Retention (%))

14. But there is more to Lifetime value

15. Think about Customer Lifetime Value as a gym membership
Gym Membership Alone Plus Upsells
Revenue
Contract Length 23 23
Monthly Charge $25.00 $25.00
Membership Revenue $575.00 $575.00
Trainer ($80/month, 3 months) $240.00
Specialty Classes ($10/month) $230.00
100% Revenue $575.00 $1,045.00
Retention Rate 50% 50%
Discount Rate 5% 5%
Customer Lifetime Value $522.73 $950.00

16. The Loneliest Customer Metric
But Why?

17. Now add in the Cost Per Acquisition
Cost Per
Acquisition
Life-Time Value

18. Balancing CLV and CPA
Track and Adjust your marketing
spend until your CPA is
optimized with your CLV

21. RedStone Federal knows that when their
customers are more engaged and upgrade their
accounts that their total customer lifetime value will
increase.
With this valuable information, RFCU can use CLTV
metrics to justify:
 Additional customer acquisition
 New branch openings
 Customer education on new products and services
Results
 RFCU has been able to create a true content
marketing strategy
 Success was so overwhelming, marketing had to
slow campaign emails because of too many
conversions
 In 7 weeks, the campaign hit 1/4 of annual online
revenue goals
 140,000 email sends with 2,400 content downloads,
5,500 new or upgraded accounts

22. Marketing Intelligence: The Challenge & Solution
The Challenge The Solution
• Fragmented Tools & Data Silos
• Poor Visibility into
Customer Journey
• Don’t Understand Behaviors
and Context
• No Cross-Channel Measurement
• No Digital Marketing ROI
• Lack of Lifecycle Marketing
• Track the Complete Journey
• Anonymous Web Surfing
• Prospect Nurturing
• Customer Lifetime Value
• Attribution for Every Step
• Give credit as appropriate
• Don’t lose sight of the value
of each touch
• Optimize Digital Marketing
for the full, tracked cycle

23. Best Practices for Growing Customer Lifetime Value
• Customer Satisfaction
• Good Customers
• Tailor product/Offerings
• Good User Experience
• Build Habits
• Make Metric Driven
Decisions

24. Q + A
Santi Pierini
santi@getCAKE.com
Twitter: @spierini
www.getCAKE.com
Mike Stocker
mstocker@marketo.com
Twitter: @michaelstocker
www.marketo.com