Tuesday, June 21, 2022
No Result
View All Result
Cryptic11K
  • Home
  • Sales
  • Starting a Business
  • Customer Service
  • Social Media
  • Time Management
  • Marketing
  • Growth Strategies
  • Home
  • Sales
  • Starting a Business
  • Customer Service
  • Social Media
  • Time Management
  • Marketing
  • Growth Strategies
No Result
View All Result
Cryptic11K
No Result
View All Result
Home Marketing

Why Growth Strategy for Your Brand Needs to Revolve Around High-Value User Acquisition

by Cryptic11K
in Marketing
1640876338 GettyImages 1182803633
10
SHARES
115
VIEWS
Share on FacebookShare on Twitter

Opinions expressed by Entrepreneur contributors are their own.

User acquisition efforts simply are not what they used to be for brands, largely due to a long list of recent changes. On the customer’s side, there have been lifestyle pivots, including an end to quarantines and shelter-in-place orders. From the business side, changes between ad networks and operating systems led to lower return on ad spend (ROAS) and decreases in scalability.

The question is, what are growth teams supposed to do going forward, as it’s obvious that previous efforts are no longer fitting the bill? Brands that were living it up during the course of the pandemic need to figure out how to build up the momentum and scale fast, before entering the danger zone. So, what’s left?

The future-proofed solution for sustainable growth

If you ask me, I’d say that what growth teams need is a future-proofed solution to all these challenges. After all, it simply isn’t feasible for user acquisition (UA) managers to keep changing strategies in panic mode due to surprise changes. To me, the best approach is to reignite the focus on growth, and sustain profitability by focusing on high-value UA through predictive modeling — a statistical technique used to predict future behavior. This modeling can overcome obstacles by using a single signal to embody a user’s lifetime value (LTV) based on a set of actions and behaviors, in addition to campaign performance. This allows marketers to send predictive signals to users who are most likely to make high-value purchases over time. 

This is important, because there are difficulties associated with the limitations imposed by short-term optimization, which places focus on upper-funnel events like registration, trial completions, tutorial engagements and lots of one-time purchases. Those are great, but fail to provide visibility into whether users will make a second purchase.

Related: Why Industry Leaders Are Turning Towards Predictive Analytics

Conversely, long-term LTV based optimization, especially with predictive-based UA, enables growth teams to target loyal subscribers, pay less for one-time buyers and tap into an untapped audience (in this context, people who would be more inclined to make purchases outside of the attribution window). There’s less competition there, which means lower CPA and higher profit margins for brands.

Top companies that saw success after applying LTV optimization

Facebook uniquely understands and acknowledges the importance of LTV optimization. A series of discussions in the 2021 Facebook LTV Summit covered how top companies were met with success by incorporating LTV data into predictive modeling to amplify growth efforts. One example discussed was the ever-popular subscription goods brand BoxyCharm (owned by Ipsy), which wanted to target high-value customers in order to lift ROI and reduce churn. The company had been optimizing its UA on subscriptions within the standard seven-day conversion window. That approach worked, but only to an extent, considering that while it yielded high conversion-to-subscription rates, churn was still a concern. What was needed was to target its long-term LTV audience to reduce churn and increase both LTV and profitability at scale, and BoxyCharm wound up turning to a marketing tool to help build a prediction model, then running campaigns optimizing on that signal. The A/B testing proved to be successful: the acquisition of high-value customers that yielded a higher ROI. 

The Facebook summit also included a presentation on how a major casual gaming brand also benefited from predictive modeling. It wanted to increase ROAS and expand its audience beyond the CPI ceiling, and this was only possible by creating a single predictive metric to target its long-term LTV audience, lower customer acquisition cost and increase LTV and profitability at scale.

Related: 7 Marketing Trends That Will Define Success in 2022

An LTV prediction model (based on an internal data lake) was created, and activated by sending a custom conversion signal to Facebook, allowing the company to run the campaign by optimizing on the signal. The results were outstanding across the board, and included a ROAS uplift of 150% and a 75% reduction in UA costs. 

These solutions are for companies either in growth mode or already large and well established, but even the biggest of growth teams with the deepest of pockets can benefit from an added boost to amplify their UA campaigns on Facebook.

How LTV data can be used to maximize results for user acquisition campaigns

If your brand is facing difficulties in building up from or even sustaining the growth from 2020, you should consider focusing on LTV to achieve growth and scale. By matching demographic data with affinities, interests and other factors, you can create whole new audiences with the same background as current cream-of-the-crop customers. Doing so essentially opens up campaign diversification opportunities by covering a larger portion of the customer journey and, therefore, acquiring new audience groups that previously might have been missed. Scalability will be increased, without suffering from diminishing returns on ad spend. You can also use this data to optimize retention campaigns after promotional periods, or optimize paid search campaigns by focusing on keywords. The use cases are plentiful!

Related: This Growth Hack Will Help Your Company Win in 2022

Total
0
Shares
Share 0
Tweet 0
Pin it 0
Share 0
Cryptic11K

Cryptic11K

Related Posts

3 Email Marketing Trends to Help You Kickstart 2022

3 Email Marketing Trends to Help You Kickstart 2022

by Cryptic11K
June 20, 2022
0

Opinions expressed by Entrepreneur contributors are their own. Email has become the preferred way for people to stay informed about...

How To Improve Your Engagement on Instagram

How To Improve Your Engagement on Instagram

by Cryptic11K
June 20, 2022
0

Opinions expressed by Entrepreneur contributors are their own. When I started HydroJug, one core value stuck out above everything else...

3 Ways to Avoid Marketing-Budget Traps

3 Ways to Avoid Marketing-Budget Traps

by Cryptic11K
June 20, 2022
0

Opinions expressed by Entrepreneur contributors are their own. Ineffective marketing and poor Internet presence are among the top six reasons...

Top Podcasting Benefits for Entrepreneurs

Top Podcasting Benefits for Entrepreneurs

by Cryptic11K
June 20, 2022
0

Opinions expressed by Entrepreneur contributors are their own. If you've got a business to promote, podcasts are one of the...

3 Ways Covid-19 Has Changed the Marketing World

3 Ways Covid-19 Has Changed the Marketing World

by Cryptic11K
June 20, 2022
0

Opinions expressed by Entrepreneur contributors are their own. It’s been written countless times already, but the pandemic has changed virtually...

7 Ways to Boost Client Retention and Prepare for Inflation

7 Ways to Boost Client Retention and Prepare for Inflation

by Cryptic11K
June 20, 2022
0

Opinions expressed by Entrepreneur contributors are their own. Now is the time to brace your business for inflation. Costs are...

0 0 votes
Article Rating
Subscribe
Login
Notify of
guest
guest
0 Comments
Inline Feedbacks
View all comments

Recommended

3 Trends to Keep Customers Engaged in 2022

3 Trends to Keep Customers Engaged in 2022

1 day ago
4 Suggestions to Improve Convenience for Consumers

4 Suggestions to Improve Convenience for Consumers

1 day ago

Popular News

    • 1641335035 GettyImages 1006512390
      How to Earn an In With the Supportive Partners You Need
    • 1640291354 ent22 janfeb strategies
      When to Launch An Illegal Product
    • 1641485338 RESTAURANTINFLUENCERSEPISODE1 SAMTHECOOKINGGUY
      Build A YouTube Following With Authentic Content
    • 1640123968 ent22 janfeb sixways
      6 Founders on When to Accept ‘No,’ and When to Persevere
    • 1641507121 GettyImages 1257750305
      4 Annoying Things That Drive Away Loyal Customers

    Support

    • Contact
    • Disclaimer
    • Home
    • Privacy Policy
    • Terms And Conditions

    Categories

    • Customer Service
    • Growth Strategies
    • Marketing
    • Sales
    • Social Media
    • Starting a Business
    • Time Management

    More News

    • 1640964699 JamieFreed2 formatted
      This Celebrity Talent Manager Is Offering a 12-Step Online Course on the Business of Acting
    • 1640123968 ent22 janfeb sixways
      6 Founders on When to Accept ‘No,’ and When to Persevere
    • Home
    • Privacy Policy
    • Contact
    • Disclaimer
    • Terms And Conditions

    © 2022 Cryptic11K - Your SEO Doctor

    No Result
    View All Result
    • Sales
    • Customer Service
    • Starting a Business
    • Social Media
    • Marketing
    • Time Management
    • Growth Strategies

    © 2022 Cryptic11K - Your SEO Doctor

    wpDiscuz
    0
    0
    Would love your thoughts, please comment.x
    ()
    x
    | Reply