Download as PDF, PPTX
Uploaded byTinuiti
Advance Your Advertising Strategy with Customer Lifetime Value Data Webinar
The document discusses strategies for enhancing advertising through customer lifetime value (CLV) data, emphasizing the importance of understanding and segmenting customers to maximize profitability. It outlines various marketing tactics, including personalized email campaigns and targeted advertising to acquire and retain high-value customers. Key points include measuring brand profitability, evaluating customer segments, and using data-driven insights to drive marketing efforts.
More Related Content
Similar to Advance Your Advertising Strategy with Customer Lifetime Value Data Webinar
Advance Your Advertising Strategy with Customer Lifetime Value Data Webinar
- 1. Advance Your AdvertisingStrategy with Customer Lifetime Value Data
- 2. ● Session Recording+ Slides Will Be Sent Out ● Join in the Poll Questions! ● Submit Questions to Our Panelists Today’s Logistics
- 3. Overview Founded in 2007 GooglePremier Partner 400+ Active Retail Clients Top 50 Fastest Growing Company San Diego D E L I V E R I N G L A S T I N G R E S U L T S F O R O U R C L I E N T S Solutions Retail-focused PPC & Shopping Amazon Sales Acceleration Facebook Performance Marketing Creative Services About CPC Strategy
- 4. MEET Leading Digital MarketingPlatform - 35B Emails Annually - 150+ CPG & Retail Clients - 450+ Clients Across Industries AN AMAZON BRAND A PETCO BRAND
- 5. Today’s Speakers Polly Flinch Directorof Marketing Jason Bell Senior Retail Search Manager
- 6. Today’s Agenda ● IntroducingCustomer Lifetime Value-Centric Marketing ● Evaluating Your Brand’s Profitability ● Audience Segmentation for New Lifetime Customers ● CLV Email Marketing Focused Strategies ● CLV Advertising Strategies to Acquire, Retain & Grow
- 7. Introducing Customer LifetimeValue (CLV) Centric Marketing
- 8. Copyright 2017 -Q4 Amazon Virtual Summit On the Rise: Customer Lifetime Value Kleiner Perkins Caufield Byers Mary Meeker’s 2018 Internet Trends
- 9. Copyright 2017 -Q4 Amazon Virtual Summit Why Incorporate CLV-Centric Marketing? Clicks Conversions Revenue Customer Equity CPC CPA ROAS CLVProfit ROI Conversion Tracking eCommerce Tracking Profit-Driven Marketing n KNOW FIND GROW RETAIN
- 10. Copyright 2017 -Q4 Amazon Virtual Summit Customer Lifetime Value Weight Insights Provided by Customer Lifetime Value: ● Realize customer's potential revenue ● Regulate customer acquisition spend more precisely ● Discover which ad platforms send most profitable customers ● Learn behavior patterns to acquire, retain and grow your customer base and in turn your profit
- 11. Copyright 2017 -Q4 Amazon Virtual Summit Identifying Most Valuable Customers Customer Centricity - how to increase profits from your best customers, find more like them, and avoid over-investing in the rest ● Jim Sterne, Founder, Chairman, Web Analytics Association 20% 20%80% 80% Pareto Principle - 20% of customers are responsible for 80% of a brand’s revenue ● Vilfredo Pareto, Economist
- 12. Copyright 2017 -Q4 Amazon Virtual Summit Knowing Your KPIs CLV KPIs ● Customer Repeat Rate ● Average number of orders ● CLV of 1-Time vs Repeat Customers ● Total CLV
- 13. Copyright 2017 -Q4 Amazon Virtual Summit Measuring Your Brand’s CLV Average Number of Orders (in a specific time frame) CLV = x x Average % Profit Margin Average Order Value
- 14. Evaluating Your Brand’sProfitability
- 15. Copyright 2017 -Q4 Amazon Virtual Summit Evaluating Your Profitability All Conv. Value Profit Margin Cost PROFIT Avg. Lead to Close Rate Avg. Value per Close Conversions Profit Margin Cost PROFIT Lean Generation Formula E-Commerce Formula
- 16. Copyright 2017 -Q4 Amazon Virtual Summit Expanding Your Profit Evaluation Calculate Gross Profit ● Use e-commerce or lead gen formula metric Add into Existing Reporting ● Implement at Channel, Campaign or Keyword level Expand Scope of Evaluation ● Apply profit calculations to site-wide level
- 17. Copyright 2017 -Q4 Amazon Virtual Summit Knowing Your KPIs Profitability Considerations ● Margin or Weighted Margin ● Micro-level profit ● Macro-level profit
- 18. Copyright 2017 -Q4 Amazon Virtual Summit Knowing Your Customer Audit CRM Data ● Rich intent-based data Identify Target Segments ● Push for repurchasing and brand loyalty Apply Lists Where Possible ● Google RLSAs, remarketing, Gmail, similar audiences ● Facebook
- 19. Audience Segmentation forNew Lifetime Customers
- 20. Copyright 2017 -Q4 Amazon Virtual Summit Don’t Boil the Whole Ocean Start with a few, high-value segments Being able to dive into your data is going to be very helpful when deciding which segments to hone in on for driving CLV. But sometimes access to data can be overwhelming and it’s hard to know where to being. Here are two methods for looking at segments: 1. Using Escalation Points 2. Product Based Segments Apply Pareto’s Law to help Focus Your Efforts Choosing High-Value Segments
- 21. Copyright 2017 -Q4 Amazon Virtual Summit Escalation Points Let Data Help You ● Look for large jumps in data ● Do you notice any trends? ● Build out marketing campaigns for each threshold
- 22. Product Based Segments SegmentCLV Example Overall CLV Example Look for trends in different segments Compare segment CLV to your overall CLV, this will help you: ● Understand which segments drive a higher CLV ● Where to spend your time
- 23. Other Segments toExplore Escalation Points ● CLV by number of purchases ● CLV by day of purchase ● CLV by time of purchase Segments ● CLV by product ● CLV by category ● CLV by channel ● CLV by number of page views or number of events ● CLV by geography
- 24. CLV Email MarketingStrategies
- 25. CLV Increases WhenYou Add Value The Elements of Value Pyramid ● Quality: minimum standard needs to be met ● Strong performance on multiple elements correlates strongly with higher and sustained revenue growth ● Different values may be important to different segments Source: https://hbr.org/2016/09/the-elements-of-value
- 26. Copyright 2017 -Q4 Amazon Virtual Summit 3 Buckets of Customers Subscribers or Browsers ● Goal: first conversion ● Campaigns: ○ Cart Recovery ○ Personalized Promotions ○ Browse Abandonment Current Customers ● Goal: continued conversions ● Campaigns: ○ Post Purchase Thank You ○ Personalized Promotions ○ Best Customer / VIP Churning Customers ● Goal: draw your customers back in ● Campaigns: ○ Predictive Win-Back ○ Personalized Promotions
- 27. Segment Based onCLV Within each bucket, you can modify your offers and promotions based on CLV High Future CLV = more aggressive offers, VIP treatment Low Future CLV = Standard offers, standard treatment VS. Since you know your overall CLV and individual CLV - you can create high, medium, and low CLV micro-segments for each customer bucket.
- 28. Copyright 2017 -Q4 Amazon Virtual Summit You have the data - use it ● The goal of marketing using CLV is to drive a higher revenue, and create a longer lasting relationship with your clients. ● Every time they visit your site, interact with you on social, or purchase from you, you should be collecting data...now’s the time to use that to your advantage. ○ Things to personalize: ■ Recommended Products ■ Products Purchased ■ First Name ■ Geography Based Info Personalized email messages improve click-through rates by an average of 14% & conversions by 10%. Personalization is Key Source: https://www.campaignmonitor.com/blog/email-marketing/2017/08/15-email-personalization-stats-might-surprise-you/
- 29. CLV Advertising Strategiesto Acquire, Retain & Grow
- 30. Copyright 2017 -Q4 Amazon Virtual Summit Acquiring Conversions ● Fill the Top of the Funnel ○ Generate demand by getting in front of customers at the awareness phase ○ Social, Display & Top of funnel search are big ● Push Customers Down the Funnel ○ Stay in front of customers through every part of their purchase journey ○ Remain visible across channels as consideration phase continues ● Optimize towards sitewide profit. ○ Evaluate ad spend as a % of total revenue & profit to maximize your investment across channels ○ Understand each channel’s role in the eventual capture of profit Goal: Continued growth in net new customers
- 31. Copyright 2017 -Q4 Amazon Virtual Summit Re-Engaging Buyers Goal: Increase repeat purchase rate & CLV ● Identify top performing customers through value-based segments: ○ Recency & Frequency of Purchases ○ Past revenue ○ Future expected value ● Ramp up re-engagement with remarketing strategies ○ Target recent & inactive purchasers via retargeting and RLSAs ○ Target during optimal window of repurchase ○ Put extra emphasis on high churn risk segments ● Personalize content based on customer value at every stage of the funnel ○ Product launches, price alerts, special offers, etc. ○ Provide more customer incentives to promote brand loyalty ● Maximize each channel’s strengths ○ Show the right message, on the right platform at the right time ○ Demonstrate & Educate at top of the funnel, and sell at the bottom
- 32. Copyright 2017 -Q4 Amazon Virtual Summit Prospecting New High-Value Customers ● Leverage existing customer data to create similar & LaL ○ Upload customer match lists for top customers ○ Harvest the audience matching expertise of Google & Facebook ○ Use similar audiences on the GDN for search, display and video ○ Use look-a-likes on Facebook ● Use audience insights reporting for additional data points ○ Analyze top customer data for further insights ○ Layer on insights into existing similar audiences or for new prospecting ● Keep evaluating and scaling ○ Continually analyze telling data for top converters ○ Use data to not only further define audience but also inform marketing messaging Goal: Find new customers based on your existing customers
- 33. Today’s Recap ● IntroducingCustomer Lifetime Value Centric Marketing ● Evaluating Your Brand’s Profitability ● Audience Segmentation for New Lifetime Customers ● CLV Email Marketing Strategies ● CLV Advertising Strategies to Acquire, Retain & Grow
- 34. Windsor Circle Offer Readyto Learn More? Sign up for our bi-monthly newsletter www.windsorcircle.com/newsletter OR See the WhatCounts + Windsor Circle platform in action by requesting a demo www.windsorcircle.com/demo
- 35. SMALL TEXT STACK TEXTROW 1 STACK TEXT ROW 2 http://bit.ly/CLV-Search-Evaluation Schedule Your 1-1 Retail Search Evaluation CPC Strategy’s Retail Search Evaluation is an in-depth 60-minute analysis and assessment of a retailer’s existing Google Shopping campaign architecture, targeting settings, product feed, product pages, and profitability metrics/ What Now?
- 36. Questions for Today’sSpeakers Polly Flinch Director of Marketing Jason Bell Senior Retail Search Manager