Cannes Lions, Tech Talk: Practical Ways to Improve Your Cross-Channel Digital Marketing - using...
28
Using customer lifetime value data to optimize your marketing spend Ben Legg, CEO Adknowledge @bglegg Practical Ways to Improve Your Cross-Channel Digital Marketing @adknowledge
-
Upload
adknowledge -
Category
Marketing
-
view
778 -
download
5
description
You've spent weeks - months, perhaps - listening to all the ways you can improve your multichannel digital marketing strategy. Now what? Ben Legg, the CEO of Adknowledge and self-proclaimed ROI junkie, explains how the savviest brands deploy messages across channels and platforms—and the steps you can take today to improve your company's approach, especially on mobile. Ben, the former COO of Google Europe, will offer best practices on segmenting your data, understanding your audience, creating engaging messaging and optimizing for efficiency. As the UK and the rest of the world rush to mobile, you'll have deeper insight into its measurability and profitability.
Transcript of Cannes Lions, Tech Talk: Practical Ways to Improve Your Cross-Channel Digital Marketing - using...
Using customer lifetime value data to optimize your marketing spend!
Ben Legg, CEO Adknowledge!
@bglegg!
Practical Ways to Improve Your Cross-Channel Digital Marketing!
@adknowledge!
2! Practical Ways to Improve Your Cross-Channel Digital Marketing!
Who is Ben Legg?!
1989-1999: "Officer @ British Army!1999-2002: "Consultant @ McKinsey!2002-2006: "Various Sales / Marketing roles @ Coca-Cola!2007-2009: "COO @ Google Europe!2009-2011: "COO @ European Directories!2011-2014: "CEO @ Adknowledge!!!
Background:!
Nationality:! British!
Degree:! Civil Engineer!
3! Practical Ways to Improve Your Cross-Channel Digital Marketing!
Demand More from Digital!
Adknowledge is a multi-channel global technology company specializing in helping large, demanding advertisers get the best
ROI from their digital marketing spend.!
4! Practical Ways to Improve Your Cross-Channel Digital Marketing!
About Adknowledge!Adknowledge helps advertisers acquire digital consumers and !maximize their lifetime value, providing the best ROI, at scale.!
Our social advertising platform delivers ROI, at scale, for brand and agency led campaigns. We are a Strategic Preferred Marketing Developer (sPMD) for Facebook and a Twitter Marketing Platform Partner.!
Adknowledge offers one of the largest native advertising solutions with editorial outreach and video seeding. Brands use us to scale video campaigns, drive paid and earned views and create engagement.!
Adknowledge targets new users for a brand’s mobile app based on highest likelihood for ongoing usage, loyalty and lifetime value.!
With over 400 million deep user profiles in our database, Adknowledge helps brands target their precise audience directly in their inbox. !
5! Practical Ways to Improve Your Cross-Channel Digital Marketing!
Working with the World’s Best Brands & Agencies!Delivering performance for brands and direct response advertisers!
Most of AdAge Top 100 advertisers!
Global Footprint – Offices around the world. Campaigns in over 50 countries!
API!API! !
6! Practical Ways to Improve Your Cross-Channel Digital Marketing!
Data Source - Gartner!
Different Lumascape, Same Story!
7! Practical Ways to Improve Your Cross-Channel Digital Marketing!
Which Adtype Should I Use?!
8! Practical Ways to Improve Your Cross-Channel Digital Marketing!
Where Should I Show My Ads?!
9! Practical Ways to Improve Your Cross-Channel Digital Marketing!
How Can I Track and Analyze Users?!
10! Practical Ways to Improve Your Cross-Channel Digital Marketing!
What Should I be Tracking?!
11! Practical Ways to Improve Your Cross-Channel Digital Marketing!
Who can help me?!
12! Practical Ways to Improve Your Cross-Channel Digital Marketing!
‘Two-Thirds of CMOs believe ROI is the primary measure of effectiveness. But half of all CMOs feel insufficiently prepared to provide hard numbers.’!!- IBM CMO Study !
13! Practical Ways to Improve Your Cross-Channel Digital Marketing!
‘If my CFO asked me how much I should spend to acquire a customer, I might consider breaking out in show tunes.’ !!– VP, Marketing eCommerce!
14! Practical Ways to Improve Your Cross-Channel Digital Marketing!
Cost to Acquire a Customer Has Increased!
competition!
Source: Sean Ellis, Startup-Marketing.com!
15! Practical Ways to Improve Your Cross-Channel Digital Marketing!
Lifetime Value (LTV) – A Metric That Can Help!
16! Practical Ways to Improve Your Cross-Channel Digital Marketing!
Spend per order! $ 15 !Cost per order! $ 8 !
Profit Per Order!!
$ 7!!
Traditional Measurement!
Transactional View!
17! Practical Ways to Improve Your Cross-Channel Digital Marketing!
We Eat Pizza More Than Once...!The LTV is the amount of profit you make from a typical customer over the entire lifetime of your relationship! !!
Spend per order! $ 15 !Cost per order! $ 8!
Profit per order!!
$ 7!!
Number of Purchases per Year! 12!Average Lifespan of Customer! 5!
Cumulative Profit! $420!
Customer Lifetime View!
18! Practical Ways to Improve Your Cross-Channel Digital Marketing!
If you were Pizza Hut, what would you rather spend to acquire new customers?!
Question:!
A B C$ 50! $ 150! $ 300!
19! Practical Ways to Improve Your Cross-Channel Digital Marketing!
* Churn plays a huge factor as well. !
Average Order!Cost Per Order!
Profit Per Order!!
Purchases Per Year !Lifespan of Customer!
!Lifetime Profit!
Acquisition Costs!
Profit Per Consumer! ! ! !
$ 22.50!$ 12.50!
$ 10!!26!10!!
$ 2,600!$ 300!
$ 2,300! !
$ 15!$ 8!$ 7!!12!5!!
$ 420!$ 150!
$ 270! !
$ 12!$ 7!$ 5!!3!1!!
$ 15!$ 50!
$ -35! !
MR. BEST! MR. AVERAGE! MR. NEGATIVE!EXAMPLE!
All Pizza Buyers Are Not Created Equal!
20! Practical Ways to Improve Your Cross-Channel Digital Marketing!
LTV – for Loyal Customers of Key Brands!
Sources: Service Profit Chain, KISSMetrics!
LTV helps marketers understand:!
How much their customers spend!
How often they spend it!
What campaigns motivate buyers to become customers for life.!
The LTV metric shines light into marketing’s biggest blind spot—the junction where long-term value begins to outpace short-term gain!
$ 8,000! $ 11,535! $ 332,000!
21! Practical Ways to Improve Your Cross-Channel Digital Marketing!
If LTV is critical why aren’t more brands doing it? !• Lack of Awareness!• Higher barrier to entry!• Difficult to calculate !• Time pressures to show results quickly!
What are the Barriers to LTV?!
If LTV is critical why aren’t more brands doing it?!
Lack of Awareness!
Higher barrier to entry!
Difficult to calculate !
Time pressures to show results quickly!
22! Practical Ways to Improve Your Cross-Channel Digital Marketing!
• Data Inventory!• Data Collection!• Data Hygiene!• CRM Database!
• Segment!• Understand!• Message!• Optimize!
• When you find something that works - uncap your budgets!!
Think Big. Start Now. Scale Fast.!
23! Practical Ways to Improve Your Cross-Channel Digital Marketing!
Think Big!
LTV provides the means to create shareholder value!
SHAREHOLDER VALUE!
High Value!
Mid Value!
Low!Value!
AVERAGE!
NUMBER OF CUSTOMERS!
LTV!
SOURCES OF VALUE CREATION!
24! Practical Ways to Improve Your Cross-Channel Digital Marketing!
Start Now!
1 Segment!
2 Understand!
3 Message!
4 Optimize!
25! Practical Ways to Improve Your Cross-Channel Digital Marketing!
ONLINE!
The Email Address is the Critical Enabler!
Offline!
Online!
Social!Mobile App!App Installs!Video!PPC!Display!SEO!Text Messaging!
Point Of Sale!Loyalty Programs!In-Store Coupons!In-Store Apps!
EMAIL ADDRESS!
Key customer interactions are no longer limited specifically to the purchase path of your website!
26! Practical Ways to Improve Your Cross-Channel Digital Marketing!
Case Study: Jackthreads!OBJECTIVE!Attract new users and upsell existing members! Extend your strategy further
by integrating your data to new platforms!APPROACH!
• Strategy included using domain ads to target new members!
• Used email profiles to develop custom audience!• Used broader list for Targeting ads, Page Post ads &
Promoted Posts in the newsfeed!
RESULTS!• 72% match rate using custom audiences!• 1/5 of more than 2.5 million members were acquired
through ads on Facebook!• 30% lower cost per acquisition for new member sign-ups
than other advertising channels!• 6X return on advertising spend when using Custom
Audience Targeting together with Facebook ads!
27! Practical Ways to Improve Your Cross-Channel Digital Marketing!
Scale Fast!“Houston, we have
uncapped the budgets!”!
28! Practical Ways to Improve Your Cross-Channel Digital Marketing!
Questions?!
Ben Legg, CEO!
[email protected]!www.linkedin.com/in/benlegg!@bglegg!
www.adknowledge.com!@adknowledge!
