Addepto - White Paper 1 Addepto - White Paper 1 - Page 4

ADDEPTO | Get Benefits from LTV Predictions and Use it For Your Marketing Campaigns 03 TARGETED MARKETING CAMPAIGNS Using a machine learning model or statistical segmentation results you are able to identify customers who have and will have the highest value for your business at the moment and in the future. Depending on the data that is available, you could combine Machine Learning model results with demographic information (age, gender, income, etc.), behavioral information (number visits, time of purchase, etc.), or marketing channel information (first touch channel, last touch channel, most frequent channel). Combining all this information your UA and marketing team are able to: 02 Serve targeted advertising to high LTV demographics to try finding new high LTV customers from that same demographic. For example, if 20-25-year-old males living in NYC have a high predicted LTV, you could use display advertising to serve ads targeted specifically to this demographic. Adjust your creative design to appeal to your highest LTV demographics. For example, if 25-30-year-old males had a high LTV, you could use images that resonate well with this demographic. Use behavioral information such as frequency visits, purchase type, etc., to set up retargeting lists for your campaigns. You could remind your low LTV behavior segments about your company in order to try to increase their LTV; you could also serve additional advertising when someone enters a high LTV behavior segment. Decide whether you want to explicitly target low LTV segments. Should you create new marketing campaigns to appeal to them in new ways to decrease churn or increase purchase amounts. If particular marketing channels bring in high or low LTV customers, you can use this to determine your budgets for each channel. Channels that may have appeared undervalued before based on only the first customer purchase may be bringing in customers who have the most repeat purchases. Rather than relying on the first purchase, take LTV into account when determining where to spend your marketing budget.