June 1, 2023

Business and Finance Blog

My WordPress Blog

A 4-Step Guide to Retargeting to Elevate Customer Lifetime Value

Elevate Customer Lifetime Value

359 Views

The most valuable customers are those who make repeat purchases over time and whose purchase frequency increases over time. These types of customers are likely to be brand loyal because they have already proven their loyalty by making multiple purchases in the past. That is the key role of  customer lifetime value  (CLV). It is the amount of revenue an average customer will generate over their lifetime. Take a look at the steps you need to take to maximize your customer’s lifetime value.

Step 1: Create an email list of your recent customers

The first step to retargeting is, of course, to create an email list of recent customers. Use your website’s registration form for new users to sign up for a newsletter or mailing list. Make sure to include an opt-in box on your thank-you page after someone buys something from you. You can also use cookies to track customers even if they don’t sign up for a newsletter or mailing list.

Step 2: Use those Emails to Target Prospects on Facebook and Google

Now that you’ve obtained the email addresses of your prospects and customers, it’s time to start targeting them on Facebook and Google.

First, create a custom audience on each platform (i.e., a group of people who have already interacted with your brand). This will allow you to retarget users based on their past behavior and interests. Next, find out which emails correspond with those users to send them custom ads that are relevant specifically for them as individuals.

Step 3: Create your first ad campaign for your best-sellers

When you’re just starting, it makes sense to focus on your best-selling products . Use these as a testing ground for different ad types and copy until you’ve found the magic combination that works for your audience.

Once you’ve narrowed down which ad format works best for your audience, run similar tests on other products. If one product is giving you higher click-through rates (CTR) and conversions than another, consider making it a priority in retargeting ads going forward so that it can compete with its more successful counterparts in terms of budget and frequency.

Step 4: Experiment with different ad strategies

You’ll want to use the A/B testing feature, conversion rate optimization tool, and cohort analysis tool. The A/B testing tool allows you to create different variations of an ad and split traffic between them to see which one performs better. This is great for finding what messages resonate with customers at a lower cost because only a portion of your audience is exposed to each variation while they’re running simultaneously.

Cohort analyses allow marketers to compare audience segments based on their behaviors over time. For example, you can analyze  which customers convert within three days versus those who convert after six months or longer. This can help you to determine whether certain groups respond differently under different conditions such as low versus high ad spend levels.

Conclusion

The goal of any company should be to create long-term relationships with customers so they can continue buying products and services from said business. However, many companies still don’t have a clear understanding of how this works—and even fewer have an effective strategy in place that helps them retain more customers for longer periods. There are now tools like retargeting which make it easy for anyone who wants to improve their customer lifetime value. If you’re looking for ways to grow your brand by increasing CLV over time then consider implementing these four steps into your marketing plan today.