What is the lifetime value of your regular customers? Its a key measurement you should consider when looking at your marketing spend and can be a big influence on the way in which you handle everything from the initial enquiry all the way through to keeping in touch with your customers longterm.
I read an article on The Times website about Tesco relaunching there clubcard scheme. The plan is to get 1 million new clubcard users, the cost is £150 million pounds.
Source: The Times
Tesco is to spend £150 million relaunching its popular Clubcard scheme. The supermarket, which claims that one in two UK households currently use the card, said it expected to attract a further one million customers as a result of the promotion — taking it to 16 million altogether.
So Tesco’s is looking at £150 a customer based on the proposed marketing spend. A few years ago Amazon took a slightly different approach to winning customers. They scrapped a multi million dollar TV advertising budget and used the money to offer free delivery. The instant effect was that more people brought from them.
