WHAT IS LIFEVALUE MARKETING?
LifeValue Marketing is a paradigm and process developed by STRATMARK that can be applied to any marketing program, commercial or nonprofit. It is an invaluable tool for decision-making and program development.
STRATMARK's trademarked and proprietary LifeValue approach to marketing and fundraising helps organizations focus resources on the individuals and the marketing initiatives that will create the highest net income today – and in the future.
DEFINING LIFEVALUE
LifeValue is the sum total of value created in a customer/donor life cycle as a result of strategically planned initiatives which sustain, advance and develop a relationship between the individual and the company/organization.
Many companies/organizations observe that 80% of their income comes from 20% or less of their customer/donor population (the Pareto Principle). They also recognize that high value customers/donors are more likely developed over time. In most cases customers/donors are developed through life stages with tangible milestones in the relationship.
Unfortunately, many companies and nonprofits do not shape their strategic communication plan in light of this pattern. This is not just a paradigm for the marketing or development department. LifeValue is an important paradigm that will fundamentally change a company's or organization's enterprise strategy across all channels of communication.
WHAT IS NETVALUE?
NetValue is the current value of a customer/donor emerging from strategically planned initiatives which tap the potential of the customer/donor at each stage of relationship development.
A systematic approach which applies the new LifeValue paradigm across a company's or organization's entire enterprise will fundamentally change the way it invests its resources in the development of both immediate net income and long-term net income.
At each stage in the development of LifeValue there is a current or immediate payoff.
Unfortunately, most businesses or organizations do not leverage and organize the way LifeValue is created. It is not surprising that nonprofits faced with a funding crisis often miss the real immediate payoff of donor relationships and sometimes misfire and damage donor relationships in an attempt to create immediate net income.
The current value that exists in each customer/donor relationship with a company/organization cannot be tapped if it does not understand the NetValue of that relationship and cannot predict how it can be turned into short-term income.
UNDERSTANDING LIFE VALUE
An understanding of LifeValue principles is not simply an intellectual exercise. A proper understanding of LifeValue charts a path for each customer/donor relationship. In every stage it may predict the NetValue of the relationship – and how that can be turned into net income.
A LifeValue-based strategic plan, properly applied, will produce more immediate net income (NetValue) and build a valuable and predictable future in these uncertain economic times.
