What Your Customers are Worth (and Why it Matters)

What is the value of a customer? What profit can they bring this week? This year? Over a lifetime? It may seem like a simple concept, but many have no idea what a regular customer is worth to their business. This creates two problems:

Uncertainty about effective marketing. What is the number of new customers you’d like to attract and what is an appropriate budget to do that? Defining a customer value will guide your marketing strategies!

Ambivalence regarding customer retention. With a metric for measuring customer values, you can navigate appropriate parameters for retaining them or expanding their business. Research shows that increasing customer retention rates by merely 5% increases profits by 25% to 95%!

Customer Lifetime Value

While there are many complex formulas for calculating a Customer Lifetime Value (CLV), a basic approach is to break calculations into five digestible portions, like this:

Average Order Value (AOV). On the most basic level, AOV is calculated by how much money is spent per customer in a year, divided by how many orders are placed by that customer in that timeframe.

Purchase Frequency (f). Take the number of orders/visits/transactions from the past year and divide it by the number of unique customers you had. The total equals frequency, or how often an average customer purchased from you.

Customer Value (cv). The base value of a customer can be calculated by multiplying the AOV by the purchase frequency (cv = AOV * f). In this instance, the customer value is being calculated for one year.

Average Lifespan/Time (t). A customer’s lifespan is how long they actively connect with your business before they move on or go dormant. This can be a complex calculation, but to keep things simple you can either give a broad estimate (an educated guess) or you can calculate an average based on a select number of known customers (adding the length of each of their commitments and dividing by the number of customers). For example: Total Length of Commitment/Number of Individual Customers = Average Customer Lifespan (t).

Customer Lifetime Value (CLV). Now that you’ve got a general idea of a customer’s value for a year and the average customer lifespan, you can use these variables for a lifetime value: Customer value (cv) * Average Lifespan (t) = Customer Lifetime Value (CLV)

While this is a very simplified equation, even a ballpark CLV can give you a more accurate idea of how valuable each client is to your business. What should you look to spend in order to gain a customer? How much should you spend to extend their loyalty? A benchmark CLV will give you a helpful base for marketing, loyalty programs, and sales goals for the upcoming year. Take a look at a more complex approach Starbucks has taken to determine their CLV as a whopping $14,099!

Your Customers Are Your Future

A customer represents the future of your success and your livelihood, and it will be difficult to thrive if you aren’t willing to risk or invest to attract new business. What are your obstacles to expanding your reach or enlarging your advertising? Has the uncertainty of direct mail marketing kept your business from growing? Why not rely on our expertise? We offer sophisticated, simple ways to reach a mass audience for an amount that works within your budget. Need a creative concept or help to carry it to completion? We offer prompt, knowledgeable service for every custom design mailing. Give us a call today!




To contact Chuck Gherman for more information about how Printing Arts Press helps organizations with their Marketing and Human Resource needs through print communications please visit www.printingartspress.com.

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To address climate change, we must use more wood, not less. Dr. Patrick Moore, Co-Founder, Greenpeace

Visuals Need a True Narrative For Maximum Effectiveness

Human beings are visual learners, which is part of why visual communication is so effective (and important). Whether you're talking about a B2C or B2B situation, marketing presentations allow your message to transcend the world of more straightforward marketing tactics and take on a whole new potential audience at the same time.

Case in point: according to one study, people only tend to remember about 10% of what they hear just three days later. If they receive the same message when paired with relevant visuals, that number jumps to an incredible 65%. It makes sense, then, that 37% of marketers said that visual resources like presentations were one of the most important forms of content for their business in general.

However, presentations are NOT necessarily a silver bullet, and you shouldn't treat them as such. Without a strong narrative at the core of your marketing, in general, it's far too easy to get lost in fluff that ultimately doesn't matter - affecting the impact on your audience as a result.

What's in a Narrative? Quite a Bit, It Turns Out

Call it whatever you'd like - a narrative, a central idea, the main thesis, etc. Every campaign needs a straightforward idea (preferably one that can be summed up in a sentence or two) at the start of it all, acting as a solid foundation from which everything else is built.

For the sake of comparison, let's look at the power a simple narrative brings to the table regarding another visual communication medium: filmmaking. The movie "Star Wars" from 1977 is one of the most successful films of all time. It spawned billions in merchandising sales, one of the most successful franchises ever, and even led to the $4 billion acquisition of LucasFilm by Disney a few years ago.

But "Star Wars" isn't really about crazy aliens, amazing spaceships, thrilling outer space battles and all of that other stuff. At heart, "Star Wars" is a simple and relatable narrative: a young boy who grew up on a farm dreams of a better and more exciting life, so he jumps at the chance to join the Rebellion and travel the stars.

It's not any more complicated than that. Every single scene in the movie reinforces that narrative in some way. It all relates back to that simple idea.

Simple and Effective 

Your marketing needs to be the same way. Whatever idea that you're trying to convey or message that you're getting across, it needs to be A) stated up front, B) as short and as simple as possible and C) relatable in some way. As long as you have those three elements, every other decision you make with regards to content needs to refer back to it, and your marketing will soar.

Having a strong, true narrative (and identifying it before you begin work) keeps you focused. Without a true narrative at the heart of it all, you're left with marketing that doesn't really justify its own existence. 

To contact Chuck Gherman for more information about how Printing Arts Press helps organizations with their Marketing and Human Resource needs through print communications please visit www.printingartspress.com.

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To address climate change, we must use more wood, not less. Dr. Patrick Moore, Co-Founder, Greenpeace

Ways to Protect Your Brand in the Real-Time Information Age

A brand is more than just a company logo, and it's bigger than any one particular product or service. Instead, it's the feeling that people get when they think about your company. It's what goes into the instinct they have regarding whether or not to make a purchase.

A brand is also massively important in terms of how successful your marketing efforts will be in the long-term. The impression someone has of your brand is something that occurs almost immediately.  48% of consumers say that they are more likely to become loyal to a brand if their first experience is a positive one, regardless of whether or not that experience actually took the form of a purchase.

That means your brand must be protected at all costs, particularly in the real-time information age that we're now living in. People are being marketed to from nearly every angle. If you don't work hard to strengthen and hone your brand, you run the risk of being lost in the shuffle. Hope is not lost, however, as there are a few key things you can do to protect your brand as much as you can.

Consistency is Key

One of the most important things you can do to protect your brand is focus on something that real-time information doesn't provide: consistency. According to one study, 90% of consumers expect that their experience with a brand will be similar across all channels - whether you're talking about print, in-person interactions, or digital content.

Don't Wait For Your Audience to Come to You

Another study estimates that, on average, you really need about five to seven positive brand impressions with a consumer before they start to remember your brand in a similar light. This is good, but you need to remember that in a real-time information age, you don't necessarily have the time to wait for a consumer to initiate those impressions.

Also, consider the fact that brands that are consistently presented are three to four times more likely to experience brand visibility. YOU must be reaching out to your audience by way of consistent, enjoyable and helpful experiences whenever and wherever you can. Increase the frequency of the print marketing collateral that you're putting out there and focus on being helpful, educational, and informative.

The Unmistakable Benefits

Give people as many opportunities to experience your brand as you possibly can and your entire identity will benefit as a result. If brand visibility is something of a numbers game, you need to play those numbers as well as you possibly can. Don't wait for someone else to hopefully do it for you.

Successful branding brings with it a wide range of different benefits, from increased customer loyalty to an improved image, to a relatable identity and beyond. But in an age where information is everywhere, your brand is something that you also need to work hard to proactively protect. If you don't, you run the risk of watching those important relationships with your audience begin to deteriorate.


To contact Chuck Gherman for more information about how Printing Arts Press helps organizations with their Marketing and Human Resource needs through print communications please visit www.printingartspress.com.

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To address climate change, we must use more wood, not less. Dr. Patrick Moore, Co-Founder, Greenpeace

Repeat Success is No Small Achievement

Arnel Pineda never imagined that he would be fronting the world-famous rock band, Journey, when he began singing American rock songs with his friends' band as a teenager.

For years his exceptional singing talent had been good enough to belt out songs with club bands doing parties, special events, contests, weddings, and regular appearances around the Philippines, Pineda's home country. However, one evening Pineda was filmed doing his performance with a particular Journey song, "Don't Stop Believin'." The performance, as well as Pineda's accuracy in singing the song so similar to how the original version was sung by the first Journey frontman, Steve Perry, shocked people. It also shocked the guitarist and an original member of Journey, Neil Schon, when he watched the YouTube video as well. One would think that the fairytale story ended at this point as Pineda rocketed to fame as Journey's replacement singer. However, that's not quite how things went.

Upping Your Game

Yes, Pineda could sing, no argument. And he did a darn good version of Journey as a bar band singer. However, the band made it clear to Pineda that if he were to be considered a serious contender for the real band, he would have to up his game. That meant singing all the original Journey songs to perfection.

It's easy for the typical person to think this challenge might be doable. That's because no one sees what Pineda had to go through to match every tone and every inflection that Steve Perry had done to make Journey's songs famous in the first place. Unlike Perry, who could craft a new song with any version of voice he liked, Pineda had to duplicate the original to every single detail. It was a grueling process with Schon and company catching every mistake and pushing Pineda to reach the zenith of his ability. There were plenty of times Pineda wanted to quit as well, questioning his own talent. Fortunately, the Filipino singer realized his full potential and succeeded.

Success Can Be Hard to Repeat

This story is a classic case showing how hard it is to achieve success a second time once a standard or great performance has been achieved in the first place. In business, a one-time success is just that, a fortunate blip. When a business team can repeat the performance and do even better consistently, that's a huge achievement. It proves that the success was not just good luck or a brief opportunity when things just fell into place.

Repeat success is the primary goal every business team strives to achieve. And it is extremely hard. Conditions change, markets fluctuate, customers move to new interests, team members leave and get replaced. All of these factors and more change the mix in how successful a team can be. To overcome these changes and repeat the success is really the higher level of performance that pays big with rewards when it can be achieved.

Not Just for Entertainment

Think Pineda's story is just something that happens in the entertainment world? Look at Apple after Steve Jobs passed away. The Apple team lost a core resource in Jobs and still had to find a way to keep Apple growing and succeeding even more than what Jobs had achieved with the company. CEO Tim Cook and company did exactly that, but it was a huge challenge to fill Jobs' shoes year after year since his passing. In many ways, Cook had to perform just as hard a Pineda to repeat a success and make it better. So the next time you see a repeat success story, don't dismiss it so quickly. It's frequently much harder to succeed a second time versus the first.

To contact Chuck Gherman for more information about how Printing Arts Press helps organizations with their Marketing and Human Resource needs through print communications please visit www.printingartspress.com.

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To address climate change, we must use more wood, not less. Dr. Patrick Moore, Co-Founder, Greenpeace

Making Philanthropy the Family Business

If you ask the owners of many large, family-owned businesses what keeps everyone together, you may notice a trend: philanthropy. Helping others truly does run in the family, and multigenerational businesses are in a unique position to pass along not just the business perspective needed to be successful, but also how to have a positive impact on the community. Even if kids are too young to be involved in the family business, it's never too early to begin coaching children about why it is important to help those who are less fortunate. It's not just large organizations that benefit from giving back -- family businesses of all sizes find that philanthropy offers a way for all ages to come together around a common goal.

Teaching Financial Stewardship

While most parents strive to raise children that are strong and confident of their place in the world, the reality is that there will always be others who do not have the same opportunities for nutrition, good schools, and a loving family environment. It can be challenging for kids growing up in a family business environment to understand that not everyone has access to the same technology, toys and clothing -- and that being a good steward of finances means finding ways to contribute to the health and well-being of others. This often starts early with a percentage of allowance going to support those in need and can continue to grow throughout their life.

Legacy of Values

Passing a company down through multiple generations is a powerful legacy,  and one that provides no small measure of pride when passed along. The values of hard work, thrift, and benevolence make for great leaders in the community and in the business -- and are a good way of maintaining strong ties with customers and employees. Even family members who are not a part of the daily running of the business are often able to get involved in a philanthropic effort in some way.

Deliberate Goals

Being deliberate about creating goals for your family business around giving is yet another way of enforcing the importance of strategy within the organization. When multigenerational leaders work together to solve challenging problems for the greater good, that hard work often spills over into daily life. A key to selecting a good philanthropic effort is that it's large enough to engage family members of all ages in some way. This allows you to tailor opportunities for service and giving to the specific preferences and strengths of an individual. For instance, some people are born to be fundraisers and are able to weave a compelling tale about the how monetary gifts will be utilized in a way that compels people to provide cash infusions. If others are more comfortable working behind the scenes, there is plenty to be done there as well.

Building family values, providing support to the community -- where's the downside? When you need printed materials for your next community project, contact us!


To contact Chuck Gherman for more information about how Printing Arts Press helps organizations with their Marketing and Human Resource needs through print communications please visit www.printingartspress.com.

#print #directmail #printmarketing #marketing

To address climate change, we must use more wood, not less. Dr. Patrick Moore, Co-Founder, Greenpeace