Return On Ad Spend Is Out, Customer Lifetime Value Is In
To charge ahead in today’s competitive marketplace, brands must think beyond short-term, transactional gains and look toward maximizing customer lifetime value (CLV). While many marketers understand this shift needs to occur, some are grappling with how to get their organizations to focus on CLV and use it to advance goals. I sat down with George Popstefanov, founder and CEO of global advertising agency PMG, to discuss how he’s been helping marketers zero in on CLV to accelerate growth today and beyond.
Matt Lawson: At Google, we’re seeing a shift in how marketers measure success—they’re focusing on business goals and longer-term metrics. How are you seeing marketers change in this regard?
George Popstefanov: Today’s top marketers are moving away from thinking about success in terms of return on ad spend and are focused instead on long-term, company-wide growth. To do that, one of the things they’re doing is making a shift to prioritizing customer lifetime value (CLV). For many years, getting this view of customers has been a challenge as the consumer journey has continued to change and split not just across screens, but also online to offline. So it’s interesting to see how this vantage point is quickly becoming make or break for companies today.