Basic Math and Customer LTV

I actually stumbled on this and it reminded me how simple the math is to calculate LTV. This isn't even algebra; it's adding/subtracting and division. Sure, their are more complex financial calcs available, too, but let's remember one of the cornerstones of Marketing: KISS.

So the point of this post is to remind any readers of a huge consulting opportunity. As an experienced Exec in Fortune 100 and startup firms, there just is no one doing this type of analysis. Despite my attempts to pitch the value of the exercise to the higherups, it just didnt have much legs. Not to mention that most ERP and even COTS vendors don't package it and it's really hard to customize at this level, so IT threw up on it in my lap more than once. Going rate should be $200/hr. Really.

Speak with you soon. DC


Dont Try to Fool Google

A recent blog by Naomi Grossman highlights how smart the Google Ph.D. Team truly is. In the new world of search marketing, paid search is king. But natural search is queen. And both rely on black-box (really) technology. So a recent "gaming Google" case, highlighted by Robin Goad, is probably an exception rather than the rule. When a marketing Team (presumably) tried to increase page ranks for their site by paying for "independent evaluations" from the blogsphere, Google caught them, and slapped them hard. To see their rapid fall from grace is nothing short of shocking. How did Google catch them? Does it matter? I'm speculating but I'm probably close based on what I've heard and what I've read. And more importantly, it's an obvious rule (obvious to some of us!) not to try and game Google...they are everywhere and they know everything. It's their game. Their rules. Their field. Their ball. But they do provide the rule book (except for those pesky algorithms). We all get an equal chance to play and most of us even have a good time, but at the end of the day, they are responsible for grooming the infield, sweeping the stands, and getting the ballpark ready for the next game on the following day. If they have to get rid of a few broken bats, too, I'm ok with that.

Speak with you soon. DC


Wharton Chimes in on the Power of Digital Marketing

I'm excited to read that my former bschool Profs are seeing what I'm seeing! And to realize that I've put in to practice, with effectiveness I might add, the theories I learned a few years ago is an exciting thing -- so exciting in fact that I commented (see Digital is More Value-Adding...) back to them. As I mentioned in my comment to the recent K@W article (and recently in this blog, too), digital marketing tools level the playing field in such a way that small startups can build brands quickly and generate high quality, predictable leads at low costs.
The net result? Small firms can truly compete with much larger, entrenched competitors. The impact of these digital tools and processes is dramatic, particuarly in the IT subsegments, as customers still look for new ways to maintain the pace of innovation and receive value from a wide variety of suppliers in a era of market consolidation.

Speak with you soon. DC