5 Marketing Channels for Low CLTV (Life Time Value)

Tracking ROI (Return On Investment) across campaigns and ad platforms allows marketers to measure the effectiveness of their marketing efforts. Allowing marketers to evaluate where they’re achieving the highest level of profitability.

But sometimes it just doesn’t work, right?

Usually it doesn’t work for companies who has low customer life time value (CLTV). You have accumulated so much data about your marketing and yet there is always some kind of ceiling that cannot be crossed.

If you want to reach more customers in a more cost-effective way, this blog post is made exactly for you.

LTV by Industry

Since the price of goods or services in every industry is different, the average CLTV will vary from industry to industry. Below is a list of different types of service businesses and their customer lifetime revenue.

IndustryAvg. Customer Life Time Value
Business Operations Consulting Firm$385,000
Digital Design Firm$91,000
Financial Advisory Firm$164,000
Commercial Insurance Company$321,000
Medical Billing$88,300
Healthcare Consulting Firm$328,600

In your case, Statistics won’t help

I hope you continued to read Because I found this table just to tell you that it not gonna help you!

Every business and every website has completely different numbers and when you try to rely on external sources for statistics is the worst thing you can do for your business! It will hold you back from testing and can even motivate you to start another venture.

How to measure Customers’ LTV like a pro

Customer revenue per year * Duration of the relationship in years – Total costs of acquiring and serving the customer = CLV

This formula is limited to one year only because if you will start to calculate the overall lifetime value of your business you might end up with a very big number that will give you the confidence to invest a lot of capital toward advertising and it can cause your business to bankruptcy:

If you will invest $100,000 in advertising in month #1 and after 12 months you are expecting to get your return on your investment should then you should be prepared that you need to wait 11 months with a small cash flow to survive.

There are many ways to measure CLTV in this only one of them if you want more in-depth consultant for your business you can schedule a free consultation with us here.

My Customers’ LTV is my destiny?

That’s right, some businesses have lower customer LTV but that doesn’t mean that these businesses are not good or profitable enough. That only means you need to find the right tactics for your business!

At this moment you have two options:

A. Increase your customers’ lifetime value.
B. Find new marketing channels for businesses with low customer lifetime value.

How I can improve my Customers’ LTV?

Invest in Customer Exprience

Customer experience is made up of every instance of connection between a customer and a brand, including store visits, contact center queries, purchases, product use, and even their exposure to advertising and social media.For example: improving the UX Writing experience is a business-wide endeavor that’s often addressed using a customer experience management program. This is a process of monitoring, listening, and making changes that add up to a lasting improvement in how customers feel and their tendency to be loyal over the long term.

Ensure your onboarding process is seamless

Customer experience starts the moment a potential customer encounters your website, but often companies can forget that customers need care after the purchase. Make sure your onboarding process is optimized for your customer’s needs, and it’s as simple and easy as possible for minimal customer effort. Personalization and communicating the extra value you provide to your customers should be a priority.

Remember the power of social media

Social media is increasingly important not only for customer communication but for customers to gather information on your brand and public image. If customers feel as though your social media responses to a query or issue aren’t fast enough, thorough enough, or empathetic, this will affect the opinion the customer has of your brand moving forward. Make sure you factor in social media – mentions, and responses into your customer experience strategy.

Recognize and reward your best customers

With your customer experience management program up and running, you’ll already have some ideas about which customers are likely to have the best CLV. You can nurture your relationships with these individuals or groups using targeted marketing and special offers that recognize their loyalty. This could include free expedited shipping, top-tier benefits in your loyalty program, or access to exclusive or pre-release products and services.

What are the best marketing channels for customers with low LTV?

Google Ads (Pay Per Click)

PPC – The fact that PPC can use advanced targeting options like location, interests, and device makes it even more effective for generating an impressive ROI. Generally, companies who use PPC advertising see an average return of $2 for every $1 spent. Use Google Ads, however, and your business will likely experience even higher returns.

Email Marketing

Email Marketing – With an average ROI of $44 for every $1 spent, email marketing is renowned for its ability to generate an ROI. Email marketing serves as one of the highest ROI marketing channels because of its ability to personalize itself to a user and their wants, questions, and needs.

SEO (Search Engine Optimization)

SEO – Unlike PPC, you don’t pay when people click on your site, which helps SEO provide an impressive ROI. SEO also works well for generating ROI because it focuses on every stage in the buying funnel, from top-of-the-funnel to bottom-of-the-funnel users.

– Read our blog posts for SEO for Local Businesses and DIY SEO Tactics

With SEO, you can reach more of your target audience and nurture them into becoming customers.

How do you calculate SEO’s ROI?

Let’s say your site generates 20 sales per month from organic traffic, with each sale worth $200, leading to a total of $4000. You’ve also invested in professional SEO services and dedicated around $1500 per month for those services. In this case, your ROI would be 166%.

Content Marketing

While content marketing ties into SEO, there are distinct differences. A good content strategy can benefit a website immensely, one best practice to follow is; not bombarding your audience with selling messages when they’re not ready. Your current and potential customers will think you’re only concerned about the sale and might avoid doing business with your brand in the future. If you find yourself gaining negative reviews, this can counteract all of the solid work you have been doing.

Developing and distributing valuable content, including ebooks, videos, case studies, and guest posts. This will establish your reputation and can drive customers or leads to perform an action (purchase, subscription, follow, inquiry).

Social Media

Social media also ranks among the most top marketing channels for low lifetime value customers, providing opportunities in both organic and paid segments. Social media allows you to interact with customers firsthand and build visibility. By curating a brand presence, you’ll find more ease in marketing your products or services.

If you want Accessily to help you with this mission check out our marketplace or schedule a free consultation with us here.

Ultimate List: Best ROI Marketing Channels in 2023 Ranked

As a marketer, you have a variety of choices for getting new customers. It may be overwhelming to decide how to allocate your budget to optimize success, especially with the endless options. You can choose from everything from social media campaigns to event sponsorship to billboards, it can be difficult to decide which ones are worthy of your marketing investment.

You landed here not for nothing, like you, there are hundreds of thousands of other businesses that get confused on the same question every quarter again and again. ״What Is THE BEST ROI channel to invest our advertising budgets?!״

In this blog post, I give you all the information you need to decide which advertising channels are right for your business, ideas, and tips.

Save the article and feel free to send us questions in the comments, promise to answer everyone!

What is ROI?

First of all, what are ROI and ROA? ROI is a metric that measures how much profit is generated compared to the expenses invested. ROAs are a similar metric but they are related to assets, so they measure how much profit is generated related to the expenses of buying/operating assets. In the marketing field, these assets can be tangible like billboards or intangible like backlinks and influencer content.

What is ROI?

The marketing channels that deliver the best ROI / ROAS are Search Engine Optimization, Paid Per Click Ads, Email Marketing, and Content Marketing. Each channel has different pros and cons depending on your usage. Every business can optimize the results by tailoring its strategy based on factors such as whether the business is B2B or B2C.

SEO (Search Engine Optimization)

What is SEO?

SEO – Search Engine Optimization is a process of increasing website visibility in search results, with the goal of receiving more organic traffic to the website.

Nowadays when people seek information whether it is looking for a product to buy or catching up with the news, they turn to Google. Google then directs them to the most relevant results based on what they searched for. Thus Google has a lot of influence on the organic traffic a website receives because it guides users to specific sites. This makes search a golden opportunity for business growth and it has the potential for the best ROI compared to other investments.

SEO ROI By Industry

Industry Return on Advertising Spend (ROAS) ROI Time to
Addiction Treatment 8.90 736% 8 months
B2B SaaS 8.75 702% 7 months
Biotech 9.20 788% 8 months
Construction 7.40 681% 5 months
eCommerce 3.65 317% 16 months
>Financial Services 11.10 1,031% 9 months
Higher Education & College 10.40 994% 13 months
HVAC Services 8.15 678% 6 months
Industrial IoT 9.85 866% 7 months
Commercial Insurance 9.05 758% 9 months
IT Staffing 7.00 612% 10 months
Legal Services 6.15 526% 14 months
Manufacturing 9.50 813% 9 months
Medical Device 12.85 1,183% 13 months
Oil & Gas 10.55 906% 10 months
PCB Design & Manufacturing 12.40 1,101% 11 months
Pharmaceutical 9.85 826% 9 months
Real Estate 15.10 1,389% 10 months
Solar Energy 9.20 770% 9 months

How to Calculate SEO ROI/ROAS?

Once you’ve determined how much revenue your SEO strategy generated during a specific time period (typically a month or a quarter), you can compare that amount to your SEO investment during that time to determine your ROI.

Check Out These Related Posts for more Information: Most Important SEO Metrics, Technical SEO Best Practices, Guest Posting Tutorial

Most businesses use the following formula to calculate SEO’s ROI:

(Gain from Investment – Cost of Investment) / Cost of Investment

If your company already has a method for measuring the ROI of your other marketing channels, you can use the same formula to compare SEO spending against the other channels.

PPC (Pay-Per-Click)

What is PPC?

Pay-per-click (PPC) is an internet advertising model used to drive traffic to websites, in which an advertiser pays a publisher (typically a search engine, website owner, or a network of websites) when the ad is clicked.

Pay-per-click is commonly associated with first-tier search engines (such as Google AdsAmazon Advertising, and Microsoft Advertising formerly Bing Ads). With search engines, advertisers typically bid on keyword phrases relevant to their target market and pay when ads (text-based search ads or shopping ads that are a combination of images and text) are clicked. In contrast, content sites commonly charge a fixed price per click rather than use a bidding system.

Example of PPC ads on Google for the keyword “health insurance”

PPC display advertisements, also known as banner ads, are shown on websites with related content that have agreed to show ads. These are typically not pay-per-click advertising, but instead, they charge a cost per thousand impressions (CPM). Social networks such as FacebookInstagramLinkedInRedditPinterest, and Twitter have also adopted pay-per-click as one of their advertising models. 

Banner Ads Example PPC

You can learn more about SEO and SMO here.

Does PPC have the Best ROI? PPC ROI/ROAS?

Paid advertising has an incredible ROI. PPC returns $2 for every $1 spent – a 200% ROI rate. (source)

This is a very big difference from SEO. (One reason involves SERP Optimization.)
But there can be several reasons for this. Two of the main reasons are:

  1. SEO is very difficult to measure, for a PPC nation that is very easy to measure.
  2. Customers who come from PPC are customers with very high conversion rates and a big customer lifetime value because they are very goal-oriented.

How to Calculate PPC ROI/ROAS?

You can calculate PPC’s ROI with the following formula:

(Gain from Investment – Cost of Investment) / Cost of Investment

For example, let’s say your primary goal is to sell a specific product that costs $100, and you run a PPC campaign with a cost per click (CPC) of $1.00. Fifty people click the ad, and two of them make a purchase.

(Gain from Investment – Cost of Investment) / Cost of Investment

($200 – $50) / $50
$150 / $50
3 * 100

In this case, your ROI would be 300%.

Of course, this is just a hypothetical example, and the ROI your company sees from PPC depends on the quality of your campaigns. But being able to quickly and easily calculate your ROI allows you to scale up on the campaigns that are working and improve upon the ones that aren’t.

Email Marketing / Marketing Automation

Does Email have the Best ROI? Email Marketing ROI/ROAS

Email marketing is the act of sending a commercial message, typically to a group of people, using email. In its broadest sense, every email sent to a potential or current customer could be considered email marketing. It involves using email to send advertisements, request business, or solicit sales or donations.

Advantages of Email Marketing:

  • Instant impact
  • Reach a global audience
  • Easy to share
  • Easy to measure
  • Drive revenue
email marketing illustration

What is Email Marketing ROI?

Email marketing makes money. For every $1 you spend on email marketing, you can expect an average return of $36. (source) That’s a higher return than you can expect from any other form of marketing — digital or otherwise.

How to calculate Email Marketing ROI?

You can calculate email marketing’s ROI by using the following formula:

(Gain from Investment – Cost of Investment) / Cost of Investment

Imagine your business uses email marketing to nurture leads. In the past quarter, you’ve invested around $500 to build, design, and send your emails. In response, you’ve earned three leads, which are worth $1500.

(Gain from Investment – Cost of Investment) / Cost of Investment

($1500 – $500) / $500
$1000 / $500
2 * 100

In this case, your ROI would be 200%.

Similar to PPC and SEO, you can also look at the value of your email marketing in Google Analytics. Just select “Email” as your channel, look at the value of your goal completions, and compare this to your monthly spending on email marketing.

Content Marketing

What is Content Marketing?

Content marketing is a form of marketing focused on creating, publishing, and distributing content for a targeted audience online. This is one of the broadest and newest channels of digital marketing and it is very difficult to measure.

Types of Content marketing strategies

It is often used by businesses in order to accomplish the following goals:

  1. Attract attention and generate leads
  2. Expand their customer base
  3. Generate or increase online sales
  4. Increase brand awareness or credibility,
  5. Engage an online community of users

Content marketing attracts new customers by creating and sharing valuable free content. It helps businesses create sustainable brand loyalty, provides valuable information to consumers, and creates a willingness to purchase products from the business in the future.

Does Content Marketing have the Best ROI? Content Marketing ROI/ROA

Because Content Marketing can be so many things, I’ll attach a case study we did on backlinks from Quora, you can also read about Content Marketing for eCommerce. The distinct numbers for content marketing ROIs are not easily determined because this channel is so wide-ranging.

Best ROI Channel takeaways:

The best marketing channel by ROI (Return on Investment) is Email Marketing But under limited circumstances.

Email marketing is a marketing tool for an existing customer base and usually won’t help you to acquire new customers.

If you are looking at marketing channels just from a new customer acquisition perspective SEO is the leading channel with an average of 10X ROI compared to 2X on PPC.

Content Marketing & SEO Platform

Content marketing has been deemed one of the most effective lead generation methods online. Accessily’s content marketing strategy with guest posting is one of the most effective and simple ways to crush your eCommerce content marketing goals and see major results for your website. In addition, guest posts from Accessily have powerful backlinks that boost SEO, so that you can see that magical 10X ROI for new customer acquisition by guest posting!

Accessily marketplace screenshot

Our guest post service and guest post marketplace plans both have comprehensive options to create and distribute effective content for your eCommerce website, and the guest posts will also include SEO, benefits, and link building. You can supply your own content or have it written by trusted sellers in our marketplace. 

The dedicated staff from our account managers and our dedicated marketplace sellers collaborate to provide a personalized content marketing strategy for your business. We can provide relevant content for any niche as well and provide strategy consulting with our managed service option where we can provide helpful content marketing ideas.

 You can harness the power of content with a custom plan from Accessily or use our marketplace to get started with your eCommerce content marketing and push your business forward!