Updated: Jan 11, 2019
3. Customer Value Customer value is often the X-factor in digital marketing, yet many businesses ignore it. Again, I’ll use an example so you can see how your customer value plays a role in your marketing.
Let’s say your conversion rate is 0.5% and your average customer value is $100. That means, on average one visitor to your website is worth $0.50.
That also means you can not afford to pay more than $0.50 to drive a visitor to your website. If you pay more than 50 cents, then you’ll lose money. What happens if one of your competitors has the same conversion rate, but a slightly higher customer value of $150? Well, this competitor can afford to pay $0.75 and will inevitably be able to buy more traffic than you. Even though the competitor may have the same offer, a similar website, and the same conversion rate, they’ll dominate the market due to their higher customer value.
The final Pillar is tracking. Without proper tracking in place, then you’ll be flying blind with very little hope to improve the other 3 Pillars.
Think of tracking like the dashboard of your car. Could you imagine driving if you didn’t have a speedometer or a fuel gauge? That would be pretty stressful because you wouldn’t know if you needed to slow down or speed up. Plus, you would likely run out of fuel with no warning signs. Proper tacking will guide your marketing decisions by telling you exactly where you need to focus.