Gartner Research

CMO Insight: Connect LTV and Operational Metrics to Measure Digital Commerce Marketing Effectiveness

Published: 22 March 2016

ID: G00301142

Analyst(s): Ewan McIntyre

Summary

CMOs are increasingly accountable for digital commerce. With accountability comes the need to discern the channels and transactions that deliver the most profitable customers. This research discusses how to connect the strategic goal of customer profitability and the tactical levers that support it.

Table Of Contents

Upshot

What You Need to Know

  • Catalog the Major Operational Drivers of LTV:CAC
  • Prioritize LTV:CAC Drivers Based on Impact and Marketing's Ability to Influence
  • Define, Monitor and Use LTV and Retention Key Performance Indicators

What You Need to Do

  • Do This First
  • Priority Actions for You
  • Priority Actions for Your Team

Gartner Recommended Reading

©2020 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner is a registered trademark of Gartner, Inc. and its affiliates. This publication may not be reproduced or distributed in any form without Gartner’s prior written permission. It consists of the opinions of Gartner’s research organization, which should not be construed as statements of fact. While the information contained in this publication has been obtained from sources believed to be reliable, Gartner disclaims all warranties as to the accuracy, completeness or adequacy of such information. Although Gartner research may address legal and financial issues, Gartner does not provide legal or investment advice and its research should not be construed or used as such. Your access and use of this publication are governed by Gartner’s Usage Policy. Gartner prides itself on its reputation for independence and objectivity. Its research is produced independently by its research organization without input or influence from any third party. For further information, see Guiding Principles on Independence and Objectivity.

Already have a Gartner Account?

Become a client

Learn how to access this content as a Gartner client.