Lifetime Value of a Customer, Client or Patient

How do you know if your ads campaign is working or not? Is there an effective way of knowing if it’s paying for itself?

Join John Arnott, business owner, and digital marketing expert in this tutorial on how to use the lifetime value of a client to analyze the effectiveness of your campaigns.

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It’s not unusual to have clients asking for feedback on their advertising campaigns on traditional and digital media. This usually happens because they are not confident about the cost-benefit of their investment in marketing.

When facing this situation, there’s a very productive way of calculating and judging whether an ads campaign is bringing in leads in a cost-effective way, based on the lifetime value of the client. To answer this, we also need to figure out how much to spend for the lead.

Using a healthcare case example, John teaches an efficient formula to get to the client’s true value. It all starts with the customer’s journey through the pipeline of services that are offered.

This will lead to the figures of the average spent and the average length of time a client, customer, or patient continues to use your service. By defining the patient’s journey and quantifying the revenue associated with that, we get to the total anticipated revenue.

After that, it’s time to calculate the margin and the marketing budget to finally get to the figure of a new client’s budget.

Considering the conversion rates between leads to real patients/clients, it’s possible to define how much you want to spend per lead and use this figure to limit the expenses on inbound phone calls. This is a proven effective way of approaching any campaign you’re creating.

If you want to know how to use the lifetime value of a client to analyze the effectiveness of your campaigns, this tutorial is all you need. Watch it to the end to get useful insights and see an example of the calculation.

And if you have any other suggestions on how to measure the cost-benefit of your marketing campaigns, please leave us a comment. We’d love to hear from you.


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