Customer Lifetime Value: The Next Level of Digital Marketing

The next big advancement in digital marketing is the Customer Lifetime Value model. Fortunately, V Digital Services is on the brink of this advancement in collaboration with Google through our Premier Partnership. Only two agencies in the world have access to this tool and V Digital Services is one of them! Right now, only eight companies are using this model, including Disney and Priceline. This is a huge advantage for V Digital Services!

With the Customer Lifetime Value tool, Google has granted us access to a $300,000 platform for absolutely free that evaluates the cost of a customer throughout their lifetime that allows us to use this data when targeting on PPC.

It takes customer transaction data and predicts how much those customers will spend in the future, which has two benefits:

1. It allows us to put a specific value on each unique customer, which tells us how much we can spend on converting that user and drive ROI.
2. It allows us to predict those customers’ revenue for the next 12 estimated months.

To provide you with an example, let’s use Starbucks coffee:

A regular, black coffee at Starbucks cost $1.85. The cost-per-conversion on a user may be closer to $2.50-$3, so the ROI technically is under from these metrics.

The customer journey doesn’t end with that first cup of coffee purchased though. That customer will continue to purchase week after week.

The Customer Lifetime Value tool will allow us to predict what that value is.

When run, it estimated that one customer that purchases a $1.85 coffee based off of their purchasing trends is really valued at $14,000 over the lifetime of a customer. Knowing that information, we can then say that the budget to convert and retain this customer should be higher resulting in an excellent ROI for Starbucks.

The tool is available to all potential clients looking to advertise with VDS.

In order for a client to qualify for this tool, they need the following assets:

  • 10,000 customer records (transaction ID, patient ID, loyalty member ID) in the last 12+ months
  • Dates for each record
  • Unique customer ID numbers
  • Minimum spend of $9,000 per month for 12 months.

This initiative will help V Digital Services reach our goal of a $1million spend per month for the paid department. This initiative also outlines the relationship and advantages that we have with our Google Rep, Tom Hammel, through our Premier Partnership.

The next level with the Customer Lifetime Value model is, again, very data-centric and scientific. It is a complex and in-depth strategy that will drive results.

V Digital Services is devoted to educating and implementing this model for all future qualifying clients. For questions, concerns or to inquire if a current/potential client qualifies for this program, please reach out to Terese Cilluffo (Team Boost Manager), Carlos Mendez (PPC Manager) or Taylor West (Fulfillment Operations Manager).

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New Team Members
Pablo Villalpando – Organic SEO Specialist

pablo-villalpando

Pablo is a highly ambitious, bilingual Organic SEO Strategist with a passionate drive to understand human behavior. He prides himself on being a digital marketing professional who eagerly stays up-to-date in this dynamic and ever-changing industry of digital marketing.
Since he was young, he has always had a fascination with the complexity of cultural and cognitive aspects that lead to a given human action. This has led him to develop a great passion, ambition, and eagerness to master SEO and CRO. He holds a BA in Sociology and a minor in Psychology, and has been fortunate to enjoy a career path through analytics, digital marketing, and social psychology.

His SEO competencies and expertise include: high level technical audits, thorough keyword research/analysis, competitive content and keyword gap analysis, on-page optimization, authority development, link-building, conversion audits and CRO, A/B testing, and more.

Fernando Pena – PPC Specialist

Fernando Peña

FFernando eats, sleeps and dreams all things PPC and has done so for the last 3.5 years. Year after year, he has been honing his craft and developing a real love for all things “Spanish.” He loves the idea of connecting Spanish users with English businesses and vice versa (i.e. lawyers, plumbers, auto dealerships, etc.) and helping clients understand the potential of a relatively untapped market. What qualifies him to do so? He can speak, read, write and curse in Spanish!

Outside of PPC, he is currently studying Web Development at Mesa Community College, with the hopes of one day having a comprehensive understanding of all things digital. He believes it would be fantastic to one day say, “I can build a site from scratch, I understand SEO concepts and I also know how to market the site using Paid Media Strategies.”

Fernando’s hobbies include gaming, fishing and shooting. He says it’s an even split, too. If he’s not online gaming with friends, you can find him at the local outdoor shooting range or fishing the lakes, rivers and streams of Arizona.

Sarah Barnard – Project Coordinator

Sarah Barnard

Sarah graduated with a BS in Psychology in 2011 and spent the following few years working as a business consultant and senior recruiter. With these opportunities, she gained extensive knowledge on how to communicate with clients, develop websites/training content, and search out the best IT talent nationwide. She started her relationship with Voice Media Group working as Traffic Coordinator at VMG National. After several months she had the opportunity to move to digital and hit the ground running as our newest Project Coordinator.

An animal lover and wilderness enthusiast, Sarah spends most weekends with her three dogs, hanging out at home or hiking outside of Phoenix. Winter weekends include frequent trips to Flagstaff to snowboard and take her two Siberian huskies for a snow romp. Sarah also enjoys movies, music, and museums, and is always looking for the next concert in town or enjoying the local art scene at First Friday.

Asma Malik – Content Strategist

Asma Malik

Asma is a veteran writer, editor and content strategist with nearly a decade of experience in content creation and management. She has worked on a diverse portfolio of more than 30 mobile apps and websites throughout her career, and enjoys building positive relationships between brands and their desired markets through engaging, relevant content.

She has a bachelor’s degree in Computer Information Systems and an International Business Certificate from Arizona State University’s W.P. Carey School of Business. In her spare time, Asma likes to travel or play video games – and write about the adventures.

Paige Beechler – Account Manager

paige-beechler

Paige Beechler is a self-taught entrepreneur with a background in hiring, managing, and promoting bands and concert tours, both in the Phoenix area and a majority of the western United States. She then developed her promotional and marketing knowledge into the digital space and started to study the various aspects of digital marketing. She comes from a diverse background in working with well-known technology companies as well as other digital marketing agencies.

Paige hopes to learn as much as she can about various departments and specialties as a V Digital as an account manager, while focusing on her passion for the independent business owner and her relationships with them.

In her free time, Paige plays guitar, reads books and comic books, expands her knowledge in cosplay costume making and even takes on extra marketing projects for her fellow business owners and friends. Music is the main influence in her life and you can be sure to find her attending the current music festival or next big concert.

Campaign of the Month

mother-bunch-logo

Client: Mother Bunch Brewing

City Media Rep: Ronnie Cole

Local SEO Specialist: Tim Roberts

Mother Brunch Brewing, located in Downtown Phoenix, recognized the need to improve their digital presence in order to drive more local traffic to their brewery. They started their Local SEO campaign with V Digital Services and Phoenix New Times in April of 2015. Their campaign performance highlights since include:

  • Total views: 219.13% increase (14,532 in April 2015 vs 46,377 in October 2016)
  • Total clicks: 130.25% increase (955 in April 2015 vs 2,291 in October 2016)
  • Driving directions: 1325.71% increase (105 in April 2015 vs 1,497 in October 2016)

The success of the campaign has been largely attributed to top tier citations and the overall Local 2.0 product. The significant milestones that the campaign has experienced through the past 12 months are showcased in the graph below.

weekly-trending-views

The Local 2.0 product continues to be the best local product on the market. It has been extremely beneficial for multiple clients and industries, and we’ve seen similar results across the board for hundreds of clients.

Friends & Partners