• http://seanclark.com/ Sean Clark

    David,

    A great article, how would suggest measuring LTV? I know the theory, but applying it directly to a PPC campaign can be a tough ask. Especially when you need client buy in.

    Any suggestions?

    Thanks
    Sean

  • http://www.facebook.com/gohawks David Rodnitzky

    Sean, thanks for the comment. Ultimately you do need client buy-in to make this happen. For B2B clients, it generally means connecting to their CRM system (there used to be an AdWords for SalesForce app but it has been retired). For B2C clients, passing a keyword identifier into the customer’s database and then getting cohort analysis back every month about the revenue from each keyword can work.

    You could also do the same thing in measuring customer satisfaction. For example, if you attach a unique identifier to a customer’s record that indicates the customer came in from search (or a particular keyword), and then you do a Net Promoter Score (NPS) or customer satisfaction survey, you can roll up your scores by source and determine whether a particular marketing channel is driving more satisfied customers than others.

    Hope that helps!

    David

  • Peter Hughes

    Definitely interesting stuff; I’ve always been of the mindset, though, that LTV is perhaps more a function of the value of the product/company rather than a reflection on the source (marketing or otherwise) that yielded the customer, especially in a subscription world. You use the Zappos example and it’s a germane one. I searched for shoes but it’s not the keyword or PPC that makes me come back for more so how can the keyword or source be judged on the basis of LTV?

    That’s not to say LTV shouldn’t, in my mind, be a factor in evaluating PPC but it isn’t, per se, the “job” of the keyword or source to retain a customer. Not that I believe in a silod approach but it would be a tough ask. The product and company really develops the LTV. Just my two cents!

  • http://twitter.com/RaquelHirsch Raquel Hirsch

    LTV thinking requires smart, educated and confident clients… Just sayin’