300% more for repeat than first-time customers The real limitation of advertising is that it does not fully address the most important factor in maximising the return on investment in marketing – the lifetime value (LTV) of every enquiry. For most businesses that are serious about maximising profitability, nothing is more important than the LTV. […]

300% more for repeat than first-time customers The real limitation of advertising is that it does not fully address the most important factor in maximising the return on investment in marketing – the lifetime value (LTV) of every enquiry. For most businesses that are serious about maximising profitability, nothing is more important than the LTV.The critical drivers of LTV are: Enquiry rates Conversion rates Average sale per customer Average margins Repeat business rates Referral rates While advertising and communication, in general, can impact significantly on enquiry rates, they have little or no effect on conversion rates, average sale per customer, and referral rates. Advertising can have a limited impact on average margin (through its minor contribution to branding) and repeat business rates (by jogging the memory of consumers).Factors impacting on conversion rates, average sale per customer, average margins, repeat business rates and referrals include staff awareness, training, attitude and performance;…