Understanding Net Present Value vs. Lifetime Value

Reading a LinkedIn article I came across the term Net Present Value (NPV). Wikipedia describes NPV as “the present value of money today compared to the present value of money in future, taking inflation and returns into account.” It’s However, I found the writer, Sallie Krawcheck’s, personal explanation more thought provoking: “the willingness to forgo earnings today, to invest smartly for more earnings tomorrow.”

Instead of applying to finances, economics and accounting, I started to think how NPV can be applied to marketing and customer relationship building. As marketers, we’ve been programmed to calculate something similar called a Customer’s Lifetime Value (LTV), the predicted net profit for the entire future relationship of the customer…but what about a prospect’s Net Present Value? Are they even worth acquiring? In the years to come, will they be worth more or less than they are right now?

Read more


How are Marketing 4.0 Trends Shaping Your Digital Priorities?

How are Marketing 4.0 Trends Shaping Your Digital Priorities?

Consider this: 88% of marketing professionals planning to increase their digital marketing budget to some extent in 2019, a study from Ascend finds. There’s no question that digital marketing continues to change the way companies of all shapes and sizes meet the needs of their customers and sales teams—so what impact is it making on your organization?

Here, we’ll take a look at the top Marketing 4.0 trends shaping marketing strategies and explore some things you can do to ensure you’re effectively blending traditional and digital marketing efforts as the landscape evolves.

Read more


Beyond the Billboard: The Evolution of Outdoor Advertising

What looks like a giant postcard and reaches audiences in the thousands—even millions, depending on its geographic location? The traditional roadside billboard, of course. And while it can be difficult to measure exactly how many people actually see a billboard ad, digital technologies are making it easier for interested viewers to take action on an advertised offer—and that’s music to the direct response marketer’s ears.

From Outdoor to OOH
Take note: what we used to refer to as simply “outdoor” advertising is now called out of home (OOH) advertising, and encompass far more than the outdoor billboards lining the sides of buildings and expressways. While billboards may be the most noticed ads—and they’re most certainly located outside—consumers also seeRead more


7 Elements of Highly Effective Lead Generation Offers

If you place two similar lead generation offers side-by-side, and then look at their campaign results, you might notice something. The better performer isn’t necessarily the one that “looks better” or says “the perfect thing.” It’s the one that’s more effective in connecting with its intended audience and driving response. Simple, right?

While there isn’t a secret formula for achieving a highly effective offer—one that always delivers on your hopes and dreams (and yes, your hard work!)—there are certain elements that demand careful attention. Why? Because you’ll identify them in the most successful campaigns.

Consider these 7 elements your must-haves for lead-gen offers that deliver the best results:Read more


Build Brand Advocates and Response with These 5 Steps

Marketers love their brand advocates as much as (maybe more than) their brand advocates love their company. What’s not to love? These customers sing your praises without being asked to, like a doting parent or best friend. But unlike a doting parent or best friend, they’re not obligated to do so. They just honest-to-goodness do.

For the direct response marketer, this means they “take action” without a specific offer from you. They’re so far into their customer journey there’s no looking back—they’re already sold and still buying. Not only will they “click here,” but they’ll recommend you to their friends, family, and colleagues. Is the brand advocate the holy grail of the direct response marketer?

Before we can look at the relationship between brand advocacy and direct response marketing, let’s explore what brand advocates are what they are not.Read more