A detailed paid media strategy focused on driving new customer acquisition while prioritising retention and maximising lifetime value at its core.
To read the full case study, continue reading….
Our ecommerce client wanted to unlock growth for their business but something was standing in their way: a relatively low average order value, which made it difficult to achieve a strong ROI directly from ads. Our client’s strategy relied heavily on client retention and maximising lifetime value to ensure a positive ROI from their Paid Media activity.
The objective of our strategy was to drive new costumer acquisition while ensuring retention rates remained high to guarantee profitable results.
We started by setting up URL tracking so we could pull data on what keywords were leading to return customers. This allowed us to understand what keywords were driving one time purchasers and which ones were driving new users that would become repeat customers, thus ensuring we could analyse and maintain retention rates.
To further enhance performance, we aimed to fully leverage audience signals to target individuals similar to the client’s existing high-value customers. To accomplish this, we implemented Performance Max (PMax) campaigns, utilising high-value customer audience lists from the client’s database as strategic audience signals.
The objective was to target users who share similar traits with the client’s high-value customers (repeat buyers who return frequently and spend thousands over time). By using these audiences as strategic signals, we enabled AI and machine learning to refine targeting, ensuring our ads reached users most likely to become loyal, repeat customers.
What’s more, we also implemented offline tracking, which allowed us to send signals back to the ads account of the users that were becoming repeat customers. This allowed us to optimise even further for this audience group by attributing a higher revenue value to this.
By combining this approach with a smart bidding strategy focused on maximising revenue, we trained the algorithm to identify and prioritise the type of users we wanted to attract. This allowed us to bid more strategically and competitively for high-value prospects, driving stronger results.
Driving Paid Media strategies focused on lifetime value can be extremely challenging as the return rate is impacted by many variables completely out of our control as paid media specialists. However, with the use of clever campaign set ups, offline conversion tracking and taking full advantage of audience signals, we were able to drive exceptional results.
Sal Joia, Paid Media Specialist
