Email Marketing: Tracking Your Customers

Email marketing campaigns are the primary way merchants communicate with existing customers and acquire new ones. Email is fast becoming the main source of marketing for many companies, and for good reason. According to the Direct Marketing Association email’s ROI is sky high. 4,300% The biggest bang for your buck where a conversation between you and your customers turns into a form profitable relationship.

In this post we’ll talk about customer level metrics that can help you optimize not only your email campaigns, but get the most out of your entire relationship with your customer.

Customer Lifetime Value (CLV)

Think of your relationship with your customers as a curve. In this curve, your customer will go through several phases – much like any relationship. This one, however, starts with a purchase. There is a wealth of information and qualitative data you can gather from their first purchase and subsequent ones.

The number of purchases they make as well as how frequently they buy, are clues to just how engaged a customer is with your brand and product.

Customer lifetime value (CLV) is a projection of the value of a given customer over their entire relationship with your brand. Customers are worth much more than simply the dollar value of the profits they generate. CLV can tell you what you will earn later from what you are spending today.

The simplest way to calculate CLV is to take the profit you generated from a given customer and subtract the money you spent on acquiring them.

All you really need are some simple points of data and a spreadsheet. You will need to know your customers’ AOV (Average Order Value), their Repeat Purchase Rate, and your Customer Acquisition Cost.

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Why is CLV so Important?

CLV is crucial to understanding your customers and can be a powerful tool in allocating marketing resources.

Thanks to the folks at for this information.