Measuring and Improving CPG Return Using CLV


Improvement in target marketing strategies for consumer packaged goods has been hampered by the inability to measure the return from those targets. This issue will become even more important as TV will soon be household addressable. Marketing to consumers has been measured at the store, market and product levels – not at the consumer level. Many direct and contractual relationship marketers have measured customer acquisition/retention and purchase size/price to construct Customer Lifetime Value (CLV) and Customer Equity (CE), estimating future return from marketing activities.

A Pilot Project demonstrated how the CLV construct can be reliably applied to CPG marketing, and a Full-Up Project will demonstrate how to measure and forecast return from advertising and among targets, helping CPG marketers better manage & improve return from target marketing practices.