One of the easiest ways of acquiring customers is through a campaign on Google, Facebook or any other platform. We all know the importance of ensuring that targeting is right, ad copy appeals to the target audience, landing page must engage with the visitor and enable conversions to registered members. Clearly, all three variables, targeting criteria, ad copy and landing page, are of utmost importance when acquiring customers through Google / Facebook.
However, all acquired customers are not equal. For a local business, a customer from another city has less than "10% value" as compared to the customer from a nearby locality. A customer who is interested in only deals for smaller value products is less "valuable" as compared to a high margin high value product in an ecommerce setting. Since marketing campaigns require tweaking on an ongoing basis, it is important to use the feedback on “value of the customer” as soon as possible.
Campaigns can be optimized for
1. Maximum response (goal is to maximize number of customers acquired),
2. Minimize cost per acquisition provided a minimum number is acquired, OR
3. Minimize cost per unit value of customer acquisition provided a minimum number of customers are acquired.
Today, there are reliable techniques to predict the “value of the customer” as long as rich profile information is getting captured as part of the customer acquisition process. If the value of the customer can be expressed as a function of these variables, customer value can be fed back for campaign optimization. For example, if we know that B.Tech Computer Science Graduates from Bangalore are more in demand as compared to BSc Physics from Bhopal, that data can be used to run Geography focused campaign on Google/Facebook. Keywords can be characterized in terms of demographic profiles of customers they help acquire.
How are you maximizing value from your customer acquisitions? Do share in your thoughts.
However, all acquired customers are not equal. For a local business, a customer from another city has less than "10% value" as compared to the customer from a nearby locality. A customer who is interested in only deals for smaller value products is less "valuable" as compared to a high margin high value product in an ecommerce setting. Since marketing campaigns require tweaking on an ongoing basis, it is important to use the feedback on “value of the customer” as soon as possible.
Campaigns can be optimized for
1. Maximum response (goal is to maximize number of customers acquired),
2. Minimize cost per acquisition provided a minimum number is acquired, OR
3. Minimize cost per unit value of customer acquisition provided a minimum number of customers are acquired.
Today, there are reliable techniques to predict the “value of the customer” as long as rich profile information is getting captured as part of the customer acquisition process. If the value of the customer can be expressed as a function of these variables, customer value can be fed back for campaign optimization. For example, if we know that B.Tech Computer Science Graduates from Bangalore are more in demand as compared to BSc Physics from Bhopal, that data can be used to run Geography focused campaign on Google/Facebook. Keywords can be characterized in terms of demographic profiles of customers they help acquire.
How are you maximizing value from your customer acquisitions? Do share in your thoughts.
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