The Life Time Value of A Customer: There’s Your Ticket!

Good morning,

As an E-commerce consultant I am often asked what is the best metric an online retailer can use to determine the true success of his/her marketing efforts? In my experience the straight forward conversion result of a marketing campaign is the most satisfying indicator possible, however the best metric to determine your online success as an online retailer aside from the straight forward conversion is the (LTVC) The Life Time Value of a Customer.

Every successful business owner I’ve consulted has always measured the LTVC in their business model. LTVC is without question one of the key standards that every business should consider using when determining the long-term success of their business, especially when it relates to online marketing. The LTVC should predicate any and all decisions in a business and should be at the forefront of any and all online marketing campaigns.

Consider the following:  

Consider the value you receive as a retailer when you collect an email, when you collect data on a purchase, when you quantify certain aspects of the buyers behavior and best of all when get to re-market to that customer, less expensively, so you can service them better and decrease your overall (CPA) Cost Per Acquisition.

Dont Ignore It

Ignoring the LTVC and looking at the short-term success of an online marketing campaign is a huge mistake. I usually recommend all my start-ups and all of my clients to build their marketing models around this one key performance factor because it always proves to be one of the highest yielding result metrics that I know of.

Dont get stuck thinking short-term, think long-term and build a solid base around the LTVC, you’ll be glad you did.

To your success!

Emilio Yepez
emilio@lighthouseinternetmedia.com
www.lighthouseinternetmedia.com
Phone: 305 389 8955
AIM: affiliateagle

BIO:  

Emilio Yepez is an e-commerce consultant located in Miami, Florida with over 16 years of operational and internet marketing experience. Emilio Yepez has worked with top Internet Retailer 500 companies and has generated Millions of Dollars in sales in both affiliate marketing programs while at ARC and ARC Media and ecommerce business development projects, like Navarro.com. Recently, Emilio Yepez developed and managed the Navarro.com ecommerce site, the largest Hispanic Owned Pharmacy Chain in the US.

Interesting Statistic

Own an Online Retail Business? Consider this.

I just read an article on Internet Retailer that reported that 79% of all online customers prefer tracking with their orders. In another study 45% required Online Chat or Instant Messaging be available on the retail site. In yet another study, 39% required Video Demos of Product Assembly or Installation demos on the retailer’s online website. Checkout the link here: http://www.internetretailer.com/trends/surveys/

After reading this brief article, what do you think these light test studies reveal about consumer behavior? My personal take: Customers want more personalization in their everyday shopping experience with an online retailer.

Invest Customer Service Applications and Processes

As more customers move toward shopping online, it’s only natural that the experience they get in the traditonal “brick and mortar” is somehow replicated through an online portal. I think these studies reveal a common trend and truth among online customers. I also see in my everyday practice how these types of findings or “gems” paint a realistic picture of what the new online consumer really wants and is looking for in their shopping experience. Therefore my suggestion to online retailers is to seriously consider these findings and bump up thier customer service strategy if they haven’t already.

Dont Get Fustrated-There Are Solutions!

Dont get fustrated, if you are reading this article today and you are an online retailer and need help with the implementation of these applications and service tools, contact me today at 305 389 8955 or email me at emilio@lighthouseinternetmedia.com. The consultation is free and you’ll save yourself tons of headaches.

Emilio Yepez
Lighthouse Internet Media
Phone: 305 389 8955
www.lighthouseinternetmedia.com
emilio@lighthouseinternetmedia.com

BIO:  

Emilio Yepez is an e-commerce consultant located in Miami, Florida with over 16 years of operational and internet marketing experience. Emilio Yepez has worked with top Internet Retailer 500 companies and has generated Millions of Dollars in sales in both affiliate marketing programs while at ARC and ARC Media and ecommerce business development projects, like Navarro.com. Recently, Emilio Yepez developed and managed the Navarro.com ecommerce site, the largest Hispanic Owned Pharmacy Chain in the US.

Mobile Commerce Sales Set to Hit: $31 BILLION Dollars

Dear reader,

If you are a merchant retailer online and have not budgeted for mobile commerce capability, you are going to miss the train. Forrester Research Inc. has just posted that by 2016 the Mobile Commerce business will have hit 31$ Billion Dollars. Here is a snap shot of what they projected: http://www.internetretailer.com/trends/sales/

2010: $3 Billion
2011: $6 Billion
2012: $10 Billion
2013: $14 Billion
2014: $19 Billion
2015: $25 Billion
2016: $31 Billion

Too Large to Ignore!

It’s obvious to those in our field that mobile commerce is playing a much more important roles these days with phones & gadgets like: the IPhone, IPads, Tablets, Etc. If you own an e-commerce business and you are not gearing up or ear-marking at least 5-7% of your earnings to integrate and revamp your site so you can accept payments from your customers on the an Ipad or mobile phone, you are making a big mistake. Now is the time to begin planning and budgeting for these very important advancements that will soon shape how consumers shop.

We Can Help!

Our firm specializes in mobile commerce development and can customize your site so it can be easily viewed on the web and service your e-commerce customers just like your traditional e-commerce site would. Contact us today at 305 389 8955 or emilio@lighthouseinternetmedia.com. We can offer you a simple, but thorough consultation on the best practices and how we can bring your online business up to speed to take advantage of all the traffic and e-commerce business projected to take place over the next several years.

To your success,

Emilio Yepez
Lighthouse Internet Media
www.lighthouseinternetmedia.com
305 389 8955
emilio@lighthouseinternetmedia.com

BIO:   

Emilio Yepez is an e-commerce consultant located in Miami, Florida with over 16 years of operational and internet marketing experience. Emilio Yepez has worked with top Internet Retailer 500 companies and has generated Millions of Dollars in sales in both affiliate marketing programs while at ARC and ARC Media and ecommerce business development projects, like Navarro.com. Recently, Emilio Yepez developed and managed the Navarro.com ecommerce site, the largest Hispanic Owned Pharmacy Chain in the US.

Thoughts on Marketing Spend & Online Retailers

Good morning,

I had a very interesting conversation with a client yesterday regarding marketing spend for their business and how to get the best (ROI) Return on Investment.

In my initial conversation with this e-retailer, I shared with them that depending on the business or niche the e-retailer is competing in, the marketing spend will vary from business to business. There are online retailers out there that have no business spending their marketing capital on Pay Per Click marketing, yet every month, they pour hundreds, if not thousands of dollars down the “PPC toilet” hoping to get a better ROI each month, not understanding that PPC marketing may not necessarily be the way to go. In other instances, there are certain online retailers where starting an affiliate marketing program is the best way to go, but if you don’t understand the dynamics of launching and starting an affiliate program, you may very well fail without the proper support and guidance.

Look At The Statistics

However, there is still some decent-hard core data that points to the facts that certain marketing channels on the web still seem to be popular among online retailers and that definitely still have a positive affect on their bottom line. Internet Retailer posted some interesting statistics concerning trends in marketing spend amongst retailers. I’ve included my own snapshot below with a link to the information I am quoting from IR:

How E-Retailers Divvy Up the Marketing Budget 

Paid Search: 30%
Email: 16%
SEO: 11%
Affiliate Marketing: 7%
Comparison Shopping: 5%
Retargeting/behavioral Targeting: 4%
Social Marketing: 4%
Dont Know: 23%

Link to article: http://www.internetretailer.com/trends/marketing/

Interesting!

As you can see, Ad Spend is the largest, yet its one of most complex channels to not only navigate in but succeed in. Email came in dead second and its obvious as to why; the proper ethical email campaign can add up to 15% to an online business bottom line, its very inexpensive and if used properly can help build a positive rapport between you and your customers. SEO came in 3rd and a reason why it probably came in 3rd place is because it requires resources and work and the results take a little while to show, but when the results do come in and you begin ranking on the 1st page of a Search Engine, all the hard work begins to pay off in $$. Affiliate Marketing and Shopping Comparison came in last and I have my suspicions as to why, but I will leave my thoughts on these two topics for my next post.

Are You frustrated?

As an e-commerce consultant in Miami, Florida, I get a lot of different calls, from different merchants either starting their business online or with inquiries and questions about how to better their frustrating situation with their online business. Needless to say, don’t wait until your frustrated, broke and upset to call someone like me. Our firm has attained over a 90% success rate with our clients and our formulary for online success and customizing a strategy that fits your unique situation is something we are very good at. Contact me today at 305 389 8955 or email me at emilio@lighthouseinternetmedia.com

To your success,

Emilio Yepez
Internet Marketing Consultant & Affiliate Program Manager
emilio@lighthouseinternetmedia.com
www.lighthouseinternetmedia.com
305 389 8955

Need More Business? Develop A Site & Drive Traffic To It!

Dear Reader,

I speak to countless business owners on a daily basis that always ask me: “Emilio, how can I get more business?”. My answer to their question is always the same: Have you used the power of the web to drive more leads to your business? 90% of the time, the answer is NO. When I ask “why not?”, they never seem to give me a straight answer. It’s always: “I don’t have time”, “I don’t understand it”, “it would never work for me”, etc.

The truth is, if you have a fairly new business or are in the midst of a start-up or have an established business for quite sometime and your website isn’t working for you, you are missing out on countless opportunities to drive more business to your practice or firm.

Think About It!

It’s not good enough to just advertise or network through traditional channels anymore. The statistics don’t lie, the ROI on these channels are very low and they don’t give you the return you used to get. If you are frustrated with the current method you are using to acquire business, ask yourself the reason why? Maybe the traditional channel is saturated. Maybe the traditional marketing channel you are using is driving up the costs and you are losing on both ends with no real result to show for. Whatever the reason, you need to seriously consider your options and consider the web (a more quantifiable channel) as a new source or medium for your business.

Giving Me A Call Today Could =A 25% Increase In The Bottom Line!

If you are frustrated and not showing much of a return on the current methods you are using to acquire new business, give me a call today at 305 389 8955 or email me at emilio@lighthouseinternetmedia.com. Give our firm the opportunity to discuss with you the options or avenues you have at your disposal via the web. In most cases, after speaking to us concerning your business, we can recommend or make suggestions that could increase your revenue or cash flow anywhere between 10-25%. Call us today!

Emilio Yepez
President
Lighthouse Internet Media
305 389 8955
emilio@lighthouseinternetmedia.com