Viewing the results of network Marketing from the customer's lifetime value

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In the discussion of network marketing effect monitoring, website conversion rate, ROI and the cost of advertising can be paid by the user came to the site directly after the sale of the calculation. But the reality is that there are many sites that can generate sales and profits from users many times. The value of the user to the site is not just a sale. In estimating the marketing costs that can be invested, the lifetime value of a user is more accurately measured. So in the network marketing effect evaluation, marketers should consider clearly, the user to the site whether there is a higher lifetime value.

There are several situations where the most typical user lifetime value is much higher than a sales value.

Long-term service

For example, Toll membership Web site, virtual hosting services, domain name services, need to constantly replace and add products, such as printer inks, paper, cosmetics and so on. These products or services, once users start to use, often require continuous use, each use has to pay.

Does the website have follow-up sales

As discussed previously, if the site itself is not a product or service consumption, but the site can be through the joint program with other sites to cooperate, to find their own users are also possible to buy other products and services, to recommend these products and commission. The number and sales of these follow-on sales (backend) are not limited to the ability of the site itself, so the possibilities and potential are almost limitless.

Loyal customer of the ordinary website

Some websites although the product does not obviously need to renew the fee, but the loyal customer is willing to go to the same website to purchase or consults the more related product, but this possibility choice range also is very wide. For example, the medical site, users know that the first time overpass hospital may just look, or consult a few questions. Once the site is remembered, it will naturally come to the site for consultation, or you can make an appointment directly to the hospital for consumption.

Similarly, other types of Web sites are likely to produce repetitive consumption as long as the product is not a product that is only needed once in a few years like a TV set.

Therefore, when the website is evaluating the effect of the network marketing, it is necessary to consider how many times users will spend on average. What is the average amount of each consumption? How much is the profit? How long is the time span that users spend on the website? Only by taking these factors into account and calculating the lifetime value of users, can we see the effect of network marketing more accurately. This article is supplied by (www.bjtqyy.com).