Stop Focusing on One Channel of Marketing at a Time!

People often hear the term multi-channel marketing and ask if it is the same thing as multi-level marketing.

The answer is no, definitely not, no way!

Multi-level marketing (MLM), as defined by Wikipedia is also called network marketing, referral marketing, and pyramid selling. It is a term that describes a marketing structure used by some companies as part of their overall marketing strategy.

Question #1: Do you think an 80-year-old grandmother in Stanford, Connecticut, who has a passion for gardening buys through the same channel as a 21-year-old man who loves to surf in Venice Beach, California?

Question #2: Do you think that they are both good prospects for, or have responded to, a multi-channel marketing campaign?

Another benefit: Multi-channel buyers purchase a wider range of products. Therefore increasing their lifetime value.

What is Lifetime Value (LTV)?

There are numerous ways to calculate a customer’s lifetime value (LTV). And most of them are daunting. But let’s make it less complicated.

Lifetime value is the contribution a customer makes to your bottom line over the period of time they continue to buy from you. You need to know your customers’ average LTV for two very simple reasons.

1. Lifetime value will help you determine exactly how much you can spend to acquire a new customer.
2. Lifetime value will help you determine how much you need to spend to retain an existing customer.

Knowing the LTV of your customers will be a deciding factor when incorporating various multi-channel marketing campaigns into your business model.

People who should listen to this show are entrepreneurs, career coaches, Internet marketers