thefunnel

Why do companies chase away customers and then complain about having to find new business? Doesn’t the concept of “Lifetime Value” work for them?

Shortsightness, lack of a customer focused strategy, difficulties in measuring LTV and no assurance that the customers will remain loyal.

It’s unfortunate but in many companies marketing doesn’t have a seat at the big table and therefore decisions are made purely on short term financial basis. There’s lots of talk about customers, brand and loyalty, but not necessarily deep understanding. Companies need passionate marketeers high enough on the ladder. Lack of metrics is another factor. Particularly true for non e-commerce, complex and long sales cylce B-2-B, where the debate about direct marketing contribution and influenced marketing contribution is still in its early phase. Thirdly, I believe many companies under invest in technologies and infrastructure that would enable better customer management and better marketing, and even if they do a reasonably good job, the data is often in silos