Benefiting From Multiple Marketing Models, Part 2

Online retailers are good at managing customer acquisition budgets — e.g., managing paid search bids. However, I haven't seen much use of CLTV that's budgeted based on the profit differential new customer segments will produce over time.

Lifecycle stage strategies target first-time buyers to cultivate them into repeat customers (reducing churn is often a big short-term opportunity to increase sales) and for targeting customers who are lapsing before you lose them, particularly high-value customers producing 80 percent of your sales.