The Real Issue Isn't Who Invented LTV

I CONTINUE TO READ WITH interest the exchange of opinions over Peppers and Rogers' Oct. 1 piece “Return on Customer: Setting the Record Straight” (Commentary, December and January). I believe all the responses totally missed the mark. It's not about who invented the concept of lifetime value or return on customer; rather it's about who's actually doing it and the associated benefits.

If Lester Wunderman, Jim Wheaton, the late Bob Kestnbaum and others have written about these concepts for more than 20 years, why aren't more marketers applying them? Yes, we all can come up with an example or two, but what percentage of marketers are tracking customer value over time and using that learning as a real management tool to drive strategy? It's a great example of what's wrong with this industry — too much talk about the next “big idea” and not enough execution on what's already known.

We as an industry should stop focusing on (and trying to take credit for) new theories, and instead focus on the implementation of existing concepts. I am a huge fan of the concepts outlined by Peppers and Rogers and have seen the associated benefits firsthand, but I have met too many marketers who say they are using advanced techniques like LTV only to learn that in reality, they are not truly imbedded in their business processes and decision-making. It would be refreshing to see more dialogue around how these concepts are being applied in real life vs. bickering over who invented what.

As direct/database/quantitative marketers, we have a great opportunity to play a substantial leadership role in helping the Fortune 1000's chief marketing officers understand and strengthen their quantitative strategies, approaches, processes and competencies that will have a significant economic impact on their business.

Our mission must be one of relevance: relevance to the “C” suite; relevance to marketing as a whole; and more importantly, relevance to the business. We cannot be relevant arguing over who invented a concept. I can assure you the CMOs I know don't care. Do you see them responding here?

Relevance is about action, impact and results. Why don't we focus our energy on what actually matters: creating better outcomes for our customers!

DAVID WILLIAMS is president and CEO of database marketing agency Merkle Inc., Lanham, MD.