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Martech Today just published a byline from our CTO that outlines how partner marketers can use the lifetime value of a customer as a way of both understanding overall user quality, and as a potentially better way of compensating some types of partners. Here’s a clip:
Lifetime value (LTV) analysis helps us understand whether customers acquired through partner marketing have the same buying patterns and loyalty as customers acquired through other channels. Partner marketing skeptics tend to think that customers attracted through CPA programs are fundamentally less loyal. A friend of mine at a massive US apparel retailer told me that he was absolutely convinced of that. But the data showed something very different.
“Then my data team showed me that there was statistically very little difference between the relative value of these customers,” he told me. “They were just as likely to buy again, and their shopping baskets were within a hair’s breadth of the same value.”
Read the entire post here.
(Note, since this article was published we have changed our name from Performance Horizon to Partnerize. Check out our home page for more information.)
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