NO Life-Time-Value ALLOWED!

What do you do if you are not allowed to use customer life-time-value in the campaign planning when working with e-commerce sites. We met with a company, which we are helping with search engine marketing, to review options to increase sales with an e-commerce site which they are running for a third company. Sound confusing? It is! This is not our normal mode of operations, but we wanted to help this new up-start company with this project and help get their feet on the ground. After all, hunting ROI is sometimes done better in packs!

The site owner’s focus is clearly on sales volume. There is no desire to form long term relationships with his new found clients. He is treating his site just as it is a vending machine on a crowded corner and simply by being there with the right product they will make their millions.
Here are things we are not allowed to do:

  1. Follow-up email campaign
  2. Monthly or special newsletters with promotions and new news
  3. Follow-up phone calls

This impacts our ability to perform retention and referral marketing. Faced with this problem we are focusing on getting more visitors to the site. Search engines remain a long term strategy. But, this client wants visitors NOW! We are forced to look at PPC type activities and this means more dollars. With an increase in new customer acquisitions, the strategy will quickly be seen as too expensive and the site owner will decide to drop this and focus on the next strategy of the month.

At the time of this post, the site owner decided to drop the internet strategy work and move all of his eggs into the TV marketing basket. Another agency came in and showed them how much more they will make with TV. Our up-start friends, which we were helping, was given a perfect opportunity to let this client go.

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  1. #1 by Anonymous on July 21, 2005 - 3:55 pm

    I wonder what that guy was thinking? Your points were right on, and he obviously is myopic in his strategy. Hopefully your associate will meet other clients who are more willing to listen to him/her, and you for that matter!

  2. #2 by ROI Hunter on July 21, 2005 - 5:43 pm

    Thanks for the comment. I expect this client to return. Their sales have tanked after we disenganged.

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