How can a brand turn one-time customers into loyalists, loyalists into repeat purchasers? How can a brand acquire new and relevant audiences? This is when Customer Lifetime Value (CLV) data comes in to provide crucial insights to advance your advertising strategy. Some Topics We’ll Discuss: Introduction to CLV & Customer-Centric Marketing Evaluating Your Brand’s Profitability vs. Revenue Audience Segmentation for New Lifetime Customers CLV Advertising & Marketing Strategies to Acquire, Retain & Grow Don’t Miss Out— CPC Strategy & Windsor Circle dive into the importance of a customer-centric business approach and how to incorporate Customer Lifetime Value Data into your advertising strategy.

1. Advance Your Advertising Strategy
with Customer Lifetime Value Data

2. ● Session Recording + Slides Will Be Sent Out
● Join in the Poll Questions!
● Submit Questions to Our Panelists
Today’s Logistics

3. Overview
Founded in 2007
Google Premier Partner
400+ Active Retail Clients
Top 50 Fastest Growing Company San Diego
D E L I V E R I N G
L A S T I N G
R E S U L T S F O R O U R
C L I E N T S
Solutions
Retail-focused PPC & Shopping
Amazon Sales Acceleration
Facebook Performance Marketing
Creative Services
About CPC Strategy

4. MEET
Leading Digital Marketing Platform
- 35B Emails Annually
- 150+ CPG & Retail Clients
- 450+ Clients Across Industries
AN AMAZON BRAND
A PETCO BRAND

5. Today’s Speakers
Polly Flinch
Director of Marketing
Jason Bell
Senior Retail Search Manager

6. Today’s Agenda
● Introducing Customer Lifetime Value-Centric Marketing
● Evaluating Your Brand’s Profitability
● Audience Segmentation for New Lifetime Customers
● CLV Email Marketing Focused Strategies
● CLV Advertising Strategies to Acquire, Retain & Grow

7. Introducing Customer Lifetime Value
(CLV) Centric Marketing

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On the Rise: Customer Lifetime Value
Kleiner Perkins Caufield Byers Mary Meeker’s 2018 Internet Trends

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Why Incorporate CLV-Centric Marketing?
Clicks
Conversions
Revenue
Customer Equity
CPC
CPA
ROAS
CLVProfit
ROI
Conversion
Tracking
eCommerce
Tracking
Profit-Driven Marketing
n
KNOW
FIND
GROW
RETAIN

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Customer Lifetime Value Weight
Insights Provided by Customer Lifetime Value:
● Realize customer's potential revenue
● Regulate customer acquisition spend more
precisely
● Discover which ad platforms send most
profitable customers
● Learn behavior patterns to acquire, retain and
grow your customer base and in turn your profit

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Identifying Most Valuable Customers
Customer Centricity - how to increase profits
from your best customers, find more like them,
and avoid over-investing in the rest
● Jim Sterne, Founder, Chairman, Web Analytics Association
20%
20%80%
80%
Pareto Principle - 20% of customers are
responsible for 80% of a brand’s revenue
● Vilfredo Pareto, Economist

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Knowing Your KPIs
CLV KPIs
● Customer Repeat Rate
● Average number of orders
● CLV of 1-Time vs Repeat Customers
● Total CLV

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Measuring Your Brand’s CLV
Average
Number of
Orders
(in a specific time frame)
CLV
= x x
Average %
Profit Margin
Average
Order Value

14. Evaluating Your Brand’s Profitability

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Evaluating Your Profitability
All Conv. Value Profit Margin Cost PROFIT
Avg. Lead to
Close Rate
Avg. Value per
Close
Conversions Profit Margin Cost PROFIT
Lean Generation Formula
E-Commerce Formula

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Expanding Your Profit Evaluation
Calculate Gross Profit
● Use e-commerce or lead gen formula metric
Add into Existing Reporting
● Implement at Channel, Campaign or Keyword level
Expand Scope of Evaluation
● Apply profit calculations to site-wide level

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Knowing Your KPIs
Profitability Considerations
● Margin or Weighted Margin
● Micro-level profit
● Macro-level profit

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Knowing Your Customer
Audit CRM Data
● Rich intent-based data
Identify Target Segments
● Push for repurchasing and brand loyalty
Apply Lists Where Possible
● Google RLSAs, remarketing, Gmail, similar audiences
● Facebook

19. Audience Segmentation for New Lifetime
Customers

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Don’t Boil the Whole Ocean
Start with a few, high-value segments
Being able to dive into your data is going to be very helpful when
deciding which segments to hone in on for driving CLV.
But sometimes access to data can be overwhelming and it’s hard
to know where to being. Here are two methods for looking at
segments:
1. Using Escalation Points
2. Product Based Segments
Apply Pareto’s
Law to help
Focus Your
Efforts
Choosing High-Value Segments

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Escalation Points
Let Data Help You
● Look for large jumps in data
● Do you notice any trends?
● Build out marketing
campaigns for each threshold

22. Product Based Segments
Segment CLV Example
Overall CLV Example Look for trends in different
segments
Compare segment CLV to your overall
CLV, this will help you:
● Understand which segments drive
a higher CLV
● Where to spend your time

23. Other Segments to Explore
Escalation Points
● CLV by number of purchases
● CLV by day of purchase
● CLV by time of purchase
Segments
● CLV by product
● CLV by category
● CLV by channel
● CLV by number of page views or number of events
● CLV by geography

24. CLV Email Marketing Strategies

25. CLV Increases When You Add Value
The Elements of Value Pyramid
● Quality: minimum standard needs to be met
● Strong performance on multiple elements correlates
strongly with higher and sustained revenue growth
● Different values may be important to different
segments
Source: https://hbr.org/2016/09/the-elements-of-value

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3 Buckets of Customers
Subscribers or Browsers
● Goal: first conversion
● Campaigns:
○ Cart Recovery
○ Personalized Promotions
○ Browse Abandonment
Current Customers
● Goal: continued conversions
● Campaigns:
○ Post Purchase Thank You
○ Personalized Promotions
○ Best Customer / VIP
Churning Customers
● Goal: draw your customers back in
● Campaigns:
○ Predictive Win-Back
○ Personalized Promotions

27. Segment Based on CLV
Within each bucket, you can modify your offers and promotions based on CLV
High Future CLV =
more aggressive offers, VIP treatment
Low Future CLV =
Standard offers, standard treatment
VS.
Since you know your overall CLV and individual CLV - you can create high,
medium, and low CLV micro-segments for each customer bucket.

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You have the data - use it
● The goal of marketing using CLV is to drive a higher revenue,
and create a longer lasting relationship with your clients.
● Every time they visit your site, interact with you on social, or
purchase from you, you should be collecting data...now’s the
time to use that to your advantage.
○ Things to personalize:
■ Recommended Products
■ Products Purchased
■ First Name
■ Geography Based Info
Personalized email
messages improve
click-through rates
by an average of
14% & conversions
by 10%.
Personalization is Key
Source: https://www.campaignmonitor.com/blog/email-marketing/2017/08/15-email-personalization-stats-might-surprise-you/

29. CLV Advertising Strategies to Acquire,
Retain & Grow

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Acquiring Conversions
● Fill the Top of the Funnel
○ Generate demand by getting in front of customers at the
awareness phase
○ Social, Display & Top of funnel search are big
● Push Customers Down the Funnel
○ Stay in front of customers through every part of their purchase
journey
○ Remain visible across channels as consideration phase continues
● Optimize towards sitewide profit.
○ Evaluate ad spend as a % of total revenue & profit to maximize
your investment across channels
○ Understand each channel’s role in the eventual capture of profit
Goal: Continued growth in net new customers

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Re-Engaging Buyers
Goal: Increase repeat purchase rate & CLV
● Identify top performing customers
through value-based segments:
○ Recency & Frequency of Purchases
○ Past revenue
○ Future expected value
● Ramp up re-engagement with
remarketing strategies
○ Target recent & inactive purchasers
via retargeting and RLSAs
○ Target during optimal window of
repurchase
○ Put extra emphasis on high churn
risk segments
● Personalize content based on customer
value at every stage of the funnel
○ Product launches, price alerts, special
offers, etc.
○ Provide more customer incentives to
promote brand loyalty
● Maximize each channel’s strengths
○ Show the right message, on the right
platform at the right time
○ Demonstrate & Educate at top of the
funnel, and sell at the bottom

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Prospecting New High-Value Customers
● Leverage existing customer data to create similar & LaL
○ Upload customer match lists for top customers
○ Harvest the audience matching expertise of Google & Facebook
○ Use similar audiences on the GDN for search, display and video
○ Use look-a-likes on Facebook
● Use audience insights reporting for additional data points
○ Analyze top customer data for further insights
○ Layer on insights into existing similar audiences or for new prospecting
● Keep evaluating and scaling
○ Continually analyze telling data for top converters
○ Use data to not only further define audience but also inform marketing messaging
Goal: Find new customers based on your existing customers

33. Today’s Recap
● Introducing Customer Lifetime Value Centric Marketing
● Evaluating Your Brand’s Profitability
● Audience Segmentation for New Lifetime Customers
● CLV Email Marketing Strategies
● CLV Advertising Strategies to Acquire, Retain & Grow

34. Windsor Circle Offer
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http://bit.ly/CLV-Search-Evaluation
Schedule Your 1-1
Retail Search Evaluation
CPC Strategy’s Retail Search Evaluation is an in-depth 60-minute analysis and assessment of a
retailer’s existing Google Shopping campaign architecture, targeting settings, product feed,
product pages, and profitability metrics/
What Now?

36. Questions for Today’s Speakers
Polly Flinch
Director of Marketing
Jason Bell
Senior Retail Search Manager