The Market Research Event 2010 is taking place this November 8-10, 2010 in San Diego, California. Every Friday leading up to the event, we’ll be recapping one session from The Market Research Event 2009.
Customer lifetime value (CLV) is the value to the companies see on the P&L of measuring marketing efforts over time. Conagra Foods was trying to link marketing to P&L. CLV is a forward looking metric, it’s value is measured starting now until the end of the customers lifetime.
What’s the value have for teh entire supply chain for ConAgra foods? Their goals is to measure and improve marketing and drive long-term customer value and loyalty.
Key issues for packaged goods companies
-How do we drive long-term growth with marketing?
-How do we develop customer acquisition and retention marketing strategies that are impactful?
-How do we match the right offers of the most responsive customers?
Standard marketing mix modeling output: total volume and subdivide it into the volumes that are driven into trade, promotion, advertising and baseline.
If you look at the baseline as a function of long-term marketing, you can begin understanding it.
Sources of growth: acquire new customers, retain more customers or increase purchasing size. Many customers are flat lining, new customers equal lost customers and retained customers, includes Healthy Choice, and Maxwell.
-Marketing is not about getting the next incremental sale, it’s more about getting new customers and making them loyal to your brand.
-Understand whether or not your strategies are working.
-Back to targeting, more aggressive media happening every day in the household. Cut some advertising and target the right people. Television is very important.