If product development and R&D expenditures are capitalized as assets, why are marketing and customer acquisition investments treated as costs?
Most businesses don’t view customers in terms of their lifetime value, leaving only ‘soft’ metrics to validate the ROI.
The “four Ps” — product, price, promotion and place — don’t add up to anything without the “big C”…customers.
Gains in new customers, market share and revenue are common yardsticks for success. But without knowing a customer’s lifetime value, you may be paying too much to win new business.