Social extensions make it possible to link your Google+ Page to your AdWords campaigns, so that all your +1s – from your page, your website, ads and search – will get tallied together.
Consumers will be able to see all the recommendations your business has received, whether they are looking at an ad, a search result or your Google+ Page, meaning your +1’s will reach not only the 40 million users of Google+, but all the people who come to Google every day.


There is tremendous controversy surrounding the Stop Online Piracy Act (SOPA) otherwise known as H.R. 3261 introduced in October of 2011 and this past weekend the President’s office finally responded to the online petitions and mounting pressure to find another, less destructive way to fight international trampling of copyright and other intellectual property rights.
Techcrunch reported the White House response:
While we believe that online piracy by foreign websites is a serious problem that requires a serious legislative response, we will not support legislation that reduces freedom of expression, increases cybersecurity risk, or undermines the dynamic, innovative global Internet.
Prominent digerati have been outspoken about their fears that this misguided attempt to use the DNS system we all rely on would have far reaching and negative consequences. This bill, among other impacts, would have put the onus on ad networks and other internet service providers to refuse business from certain sites and would bar search engines from displaying links to those sites. Huh? Since when is it all our jobs to police and enforce?
If broadly interpreted, many believe this bill and its sister bill in the Senate (PIPA) violate the First Amendment and may restrict the use of proxy servers to disseminate critical information, for instance during populace uprisings.
It looks like, for the moment at least, the power of the web may have saved the power of the web. It pays for all of us to be vigilant and active participants in the laws governing this space as they hold tremendous power to protect or disrupt our fundamental rights as well as our ability to conduct business.
It’s one of the first questions we ask almost every client – “What is the value of a customer to you?” Only a small percentage of otherwise sophisticated clients can muster an answer. Most of even those who do answer are simply estimating based on a guessing game in which our team plays game show host. Would you consider an acquisition cost of $X to be a win? Why? If you don’t groom your clients at all, what is their spend rate per year? If you do communicate with them, does it increase? By how much? What can you tell me about the different kinds of customers you service and their impact on your profitability? How has this changed over time? The list of questions can go on forever.
It’s not just an issue for e-commerce marketers. All marketing has the ultimate goal of finding, securing, retaining, defending, or growing the value of customers. This holds true whether or not you get the immediate feedback of an online sale or are tracking leads from a long-term, considered purchase online or off. It seems self-evident that you would need to know what an average customer and a good customer are worth to your business to have any hope of logically planning your marketing strategy and expenditures toward increasing that value. With all the talk of metrics and ROI in digital marketing, this basic but critical information seems to be missing far too often, resulting in lots of measurement and little logic in the decision-making those metrics are intended to support.
Let’s take a look at the impact of marketing informed by lifetime value (LTV) across a spectrum of marketing goals.
Finding Customers
New customer acquisition is not about gaining new customers at any cost. It is about finding those customer segments that bring long-term value and profit to your business and that can scale sufficiently to support your short- and long-term goals. Certain channels, messaging approaches, and media plans return those right customers. Knowing how to define them is the starting point for a deliberate, sustained testing program that will continue to refine your approach and results.
Securing Customers
For most categories (that aren’t insanely loyalty bound), you can create trial with new potential customers if you offer a new or intriguing experience or if you discount deeply enough. Sure, some customers will never pan out or will only buy on promotion, but some may become good customers if you continue to offer them a good value and a good experience. You need to be able to model out the expected long-term return on that discount-driven customer in order to justify the investment in what could be a negative margin initial sale. A key input in that calculation is the value that the customer is likely to provide over their life.
Retaining Customers
Long-term customer relationships are about brand-building and relationship-building activities that reinforce the value you provide customers and remind them you exist and can fill a need for them. More valuable customers should be provided with more value, more often. That value can be delivered in many forms including increased or priority access, special content or tools, or many other perks such as price incentives or rebates. All of the monetary and non-monetary value that you provide costs money and it’s impossible to know how much it makes sense to invest if you don’t know the value of your customers.
Defending Customers
The flip side of retaining customers is competitive defense. All customers have a choice and will be presented with other attractive options unless you are in a monopoly business. Stay focused on retaining those customers, especially the more valuable customers that were so hard-won. Knowing the lifetime value of your customers will help you plan your response should an aggressive competitor come into your territory. Are they after your prime customers or the marginal ones? You won’t know what to counter with or what level of spend makes sense in response unless you know your customers’ value, preferences, and responsive areas.
Growing Customers
The definition of a good customer is going to vary widely by company, category, industry, segment, maturity, and many other factors, but all other things being equal, we definitely want customers who buy in greater quantity or more frequently. We also want those customers who spread positive news about us. Through social media and other digital measurements, we can track how frequently customers engage or interact with the brand, how often they recommend the brand, or the scale of their sphere of influence.
Growing customers across any of these measures takes time, resources, and investment and can shift the way you might determine the LTV of a customer. Should you invest in growing a customer from a once-a-month buyer to a twice-a-month buyer or instead invest in grooming all buyers who have broad influence and/or are strong advocates in social media? The power of social media has changed the metrics that define LTV forever.
Despite all our cross-channel tracking capabilities and optimization proficiencies, LTV remains an elusive, if critical data point on which vital decisions depend. It’s not easy and it’s not a one-and-done proposition, but if you can’t articulate what your customer is worth to your business today, then you won’t know how to build, defend, or grow your business.
As the year comes to a close - perhaps what is most memorable is just how much and how fast things moved. We have all experienced time accelerating at increasing speed over the last decade or so – mostly driven by the advent and adoption of new technologies but this year – well, it was over the top. Perhaps the stress and demands of the economy played a role. or maybe the increase in multi-device usage or the coming of age of many who grew with the internet. There is a multitude of compounding reasons – Whatever your reasons, thoughts or feelings are – make no mistake about it- the diluge of information, stimuli and connections at our fingertips are growing rapidly and exponentially so while we may know more – there is no one who knows everything.
This new year – at least for a day – take a deep breath, don’t think about all you know – save your energy – for the next day brings another chapter of new adventures in the digital industry.
Happy New Year All!
It will be interesting to watch this development in search as Siri expands to present another credible resource for quick hit answers that bypass Google – at least for the growing population of iphone users. But for those of you with the iphone 4S Siri is proving to be as much a source of entertainment as it is for information.
If you have a few spare minutes to kill during your holidays try presenting Siri with existential or odd questions to answer. It’s become a sort of parlor game to stump Siri. It’s revealing to see what your friends and family ask and some of the programmed answers are hysterical.
For example:
Q: What is the meaning of life?
Siri: No one is sure but all signs point to chocolate.
Q: How much wood would a woodchuck chuck if a woodchuck could chuck wood?
Siri: It depends on whether you are talking about African or European woodchucks.
Q: Why did the chicken cross the road?
Siri: I am not perspicacious about the peregrinations of poultry.
Comment below and let us know about your own Siri queries and answers. And in case you missed it – this Siri horror spoof is a hoot!
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