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ADDEPTO | Get Benefits from LTV Predictions and Use it For Your Marketing Campaigns
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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:
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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.