Question

Knowing the cost of acquiring a new customer can help you make some strategic decisions about your marketing campaign.  

Which additional factors are needed to decide if the campaign was successful/profitable? (Pick three (3)).

Select one or more:

a. Industry campaign benchmarks to see if our competitor campaigns are successful.

b. Lifetime Value of the customer

c. Business objectives

d. Average customer purchase price/value

e. New customer target segment acquisition costs

f. Campaign success or failure rates

g. Previous campaign results.

Answer 1

b. Lifetime Value of the customer

d. Average customer purchase price/value

e. New customer target segment acquisition costs

The factors as suggested above are needed to get the campaign price of a marketing campaign to be successful and profitable. The cost of the program and thus the profits derived from it are calculated based on the new consumers gained along with the purchase volume of the consumer and the lifetime value that the consumer brings in with them to suggest the pricing and the benefits of a campaign that it has drawn based on the short term and the long term value addition to the business.