DATA-DRIVEN CMO is an ongoing series on the Brooks Bell Blog that focuses on topics for the modern day data-driven CMO.
My son is having a party this weekend to celebrate his 6th birthday. As a test, I asked him what he was most looking forward to. He replied with a wide grin, “the presents!”
As an adult, it may seem superficial if I had the same reply. From a kid perspective, the number of people who come to the party or how much my wife and I spend on the event and party favors just doesn’t matter very much. What matters is what they get out of it. That equates to presents.
Marketers can learn a lot from this. We often spend a lot of time measuring our visitors and the costs associated with getting them to come to the party. Measuring visitors is like measuring the number of guests who attend the celebration. CPA measurement is related to the cost of the venue, cake, and party favors. We should start thinking like a kid on his birthday and care about the presents: the value of the customer.
In the end, it is the lifetime value of the customer, not the total number of visits, which matter. This idea seems simple, but unfortunately, many marketers still fall into the trap of activity-based metrics.
Do you count the number of party guests, or the value of the presents? Tell us what you think in the comments section below.