21 Jun '14, 10pm

The Definitive KPI for SEM Acquisition Marketers via @sengineland #adtech

When it comes to SEM acquisition marketing, there’s no such thing as a free lunch. As acquisition marketers can attest, there’s almost always a tradeoff between the number of new customers acquired, and the customer lifetime value (CLV) of those customers. In short: The more new shoppers you bring in the door, the less each of those customers is likely to be worth to the business in the long run. What accounts for this widely-observed phenomenon? There are a couple of factors that explain why number of customers acquired and CLV tend to move in opposite directions: Self-Selection. As a thought experiment, consider two customers: one who clicks on your paid search ad in a top position, and one who seeks you out on page three of search results. Which customer is more likely to have a strong affinity for your brand and products? Probably the customer who was willing to wade t...

Full article: http://searchengineland.com/single-metric-every-sem-acqui...

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