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Lifetime Value Analysis

Most business to business marketers acquires new customer locations at a loss in anticipation of future orders that exceed this loss. Other marketers may acquire at varying levels of profit but the need to understand the initial order value against future revenue remains the same. Traditional response rate analysis and dollars-per-book data don’t consider future orders. Thus they frequently don’t lead to correct decisions.

LTV = AC + FV

This simple formula can be one of the most powerful drivers of profit for any direct marketing business. The trick is in its application. One number for all customers is better than not applying it at all but understanding how it impacts market segments/audiences and business time frame objectives, and applying it through marketing campaigns results in substantial improvement in ROI and business valuation.


Testimonials
  • "Q11 Associates has been in the B2B direct marketing space for several decades. It’s rare to find a partner organization staffed with genuinely good people who are also highly competent, and produce great results. That describes our good friends at Merit Direct.”
    - Byron CrowellDirector of Operations, Q11 - Solution Publishing
  • “Data is sensitive, and mistakes interpreting data can be costly. When it comes to data, you want to work with a company that you trust. For us, MeritDirect is that company. They not only have the history, but they have the team.”
    - Geoffrey Forman Marketing Analyst, Edmund Optics Barrington, NJ
    Geoffrey Forman - MeritDirect
    Edmund Optics Worldwide - MeritDirect Solutions
  • “MeritDirect is a strategic partner of ours and in my opinion, professionally and personally, is the thought leader on business to business, data use and marketing in United States today. Their success is driven by the culture, the experience of senior leadership in the company have and the commitment to quality, accuracy and excellence in both product quality and service quality.”
    - Peg Kuman, Vice Chairman, Farm Market iD
  • “Trust and communication are non-negotiables when it comes to partner relationships. Thankfully, Merit Direct excels in both areas, having worked with us from day one on laying a foundation of proactive consultation, strategic collaboration, and, ultimately, mutual success. ”
    - Stuart BonnerSr. Director, Marketing Operations & Client Services - Access Intelligence, LLC
     

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