We rarely have to argue with a client when we sagely advise them to ‘align marketing investment with current and potential customer value’. Nobody wants to squander budget on customers that have little interest in what we have to sell or do not have the capability to pay; that only annoys both sides of the customer-supplier relationship.
But it is surprisingly hard to move from this in-principle agreement to actually allocating different marketing spending to different groups of customers on the basis of their known and projected value. So how do you get started? [Read more…]