Go for Lifetime Value Targeting
Tags: Internet Marketing
Online ad targeting started with primary behavioral targeting but now it has moved to other forms of targeting such as business demographics, site re-targeting, social graph targeting, and even CRM re-targeting. All these methods ultimately create awareness and then target the most valuable customers. However as every marketer would know that all customers are not equal. The next targeting sphere is lifetime value.
Although we talk about lifetime targeting, but it is the most overlooked and least understood. However, it is the one that is one o the easiest to figure out. We need to understand how much should we invest in customer retention and customer acquisition. Retention will definitely bear fruits in the long run.
Lifetime value targeting focuses on the deep understanding of your current customer base in the beginning so you can develop the potential high-lifetime value and low- lifetime value customer segments.
For example, if you know your high-low-lifetime customers might be organizations in which the primary decision maker is a C-suite executive who works in retail services, you can then create personalized messages to strategically target them. You can reach them through a variety of channels.
Previously, such personalized targeting was done through direct mail. Companies would purchase lists, segment them, and send different offers depending on the target persona. For example, a car manufacturer might send a high-lifetime value customer a 0 percent interest offer for the newest car model, whereas a low-lifetime value customer might get a 2 percent interest offer.
How can you achieve the same with the digital media?
1. Create that dream profile
Segment your customer database into high and low lifetime value customers. Observe the size of the company they work for, what industry they are in, their seniority level, etc. Try to get a clear view of the person or people in the company or who are doing the buying. The more you know, the better understanding you will gain that will help you create an accurate profile for that perfect persona.
Here’s a simple way to calculate lifetime value
(Average Value of a Sale) X (Number of Repeat Transactions) X (Average Retention Time in Months, or Years, for a Typical Customer)
2. Speak to personalization:
To get the best results, creating messaging and programs specifically for your high lifetime value audiences is crucial. Think about developing and delivering different messages and specialized offers that correspond with where the prospect.
3. Expose your Target segments to multiple channels
As your highest-value segments are consuming information across a variety of online channels, do not invest all your marketing dollars on a single channel. Open your target segments to a variety of media channels. If you are tracking your efforts in your CRM system, you will be able to target those segments in a variety of ways. With onsite personalization, you can deliver personalized content for your customer on the company website. You can also serve targeted ads to your prospects via social, display, and even direct mail.
4. Track your programs
You can track a range of metrics to see whether your campaign is working. What about the new visitors, have they seen the ad before they got here? Gain deep insight on your conversion rate. What is the percentage of your website visitors that are identified as high-value customers? See to it that the targeted high -value customers that you identified are increasing or maintaining the spend.
You may also notice trends in the type of person converting. For example, if your perfect persona has typically been an executive in financial services, but all of sudden you are seeing pharmaceutical executives convert, you can adjust your messaging and launch new programs geared to that audience.
You may also notice the shifts in trends. Previously, your perfect persona has been an executive in retail services, but now you are attracting banking professionals, as well. By methodically tracking your efforts, you will be able to take informed decisions and fuel investments in the right programs.