How to Prove Worth of an Ad Investment to a Client?
Updated: Jan 15
...That is all you need.
With no doubt, this is probably the make it or break it point of any sales pitch when selling marketing services.
If you lose track, hesitate, or do not actually understand the Value... TRUE value that you are offering to the client, that client is already protecting his/her pocket from you.
Customer Lifetime Value (CLTV) is a way to usually CLOSE it my friend!
Before sending any service proposal, is it absolutely key to understand that there is a customer lifetime value you as marketer need to understand prior to offering any service solution.
Every client and business is different, but the there is always a way for you to figure out what's the customer lifespan's worth for that business.
Based on this, your offering and pitch needs to adapt to the business instead of the way around.
With this in mind. Find below the must ask question you need to do to any prospect:
4 Question to Get Customer Lifetime Value
Prior to the offering understand these:
For how long for does a regular client keeps coming/consuming your products or services?
What other products or services could improve the experience of that customer? Now or later...
Do you have any referrals, coupons, re-marketing in place?
These basic questions are even often forgotten by marketers themselves. So, even worse, if the client does not have the true insight of their customer lifetime value or potential CTLV, offering an Ad investment or service could be seen 10x higher price than it could actually be.
The second option is that the pricing of the offering is higher than it should be and it could be off relative to the CLTV of that business.
BUT, we know you wouldn't do that!
Either way, don't get this insight wrong as it is almost fundamental for long-term success.
You can easily calculate this using the CLTV calculator here.