‘Target audience’… It’s one of the most common phrases in the world of digital marketing, but is it time we started to edge away from this concept? The Adrac team set out to answer this question and it did not take long to establish in a nutshell that, no it’s not.
Knowing who your audience is, and understanding what they’re looking for, is and remains the foundation of a successful campaign. However, it is time to start expanding on this idea. Advances in technology and tracking mean it is now possible to delve further into what we know about our buyers than ever before.
In identifying a target audience, Adrac generates a persona; a research-based simulation of a typical customer. But, not all customers are created equal.
Regardless of similarities in factors such as age or income, the customers that make up target audiences exhibit different buying behaviours, respond to different messages, have different intentions and it’s exactly this that needs consideration if we want to derive the most value from our campaigns.
Introducing the CLV Model
The CLV model looks at customer lifetime value; the predicted ‘worth’ of a customer over a given period. This model allows us to venture deeper beyond the target audience, identifying those that are statistically most likely to bring ongoing, long term value to the business.
How you define ‘value’ is up to you when you work with Adrac; you may be looking to boost profits, increase visibility or increase income for example.
Your definition of ‘value’ will likely determine exactly which metrics we should measure in order to assign a customer lifetime value to your buyers. Depending on your aims, these metrics could include:
- Amount spent by account
- Number of return visits to the website
- Order quantity and average order value
- Social shares of business-generated content
- Engagement in surveys, competitions, feedback, and reviews
Once we have a more thorough understanding of your high value customers — those with the highest assigned CLV — it becomes much easier to map out successful campaigns, allocating the marketing budget effectively to ensure there are adequate resources to focus on delivering an excellent overall customer experience to those that exhibit buying behaviours in keeping with high CLV audiences.
Here at Adrac, we believe that the CLV model forms an integral part of your customer analysis efforts, which is why we strive to make it simple and straightforward for our clients to collect, consolidate and analyse customer data. One of the fundamental elements we offer each new client is the Adrac Performance Reporting Platform; a way to track all conversion journeys from day one, right through from source to sale, to help you assign a CLV to your audience and optimise campaigns for the best returns.
Want to find out more? Get in touch with us today.