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Customer relationship analysis for brands is a full-time job. Even after you have all your data, and you have program details and plans confirmed, how do you actually go about acquiring the best types of net new customers at scale? There are three core areas to focus on, which include maturity curves, affinity models and cohort analysis.
Maturity Curves: Identify your most valuable customers based on early ROI recognition and behavioral patterns.
In order to scale your performance marketing campaigns, early revenue indication and predictive model-based bidding is essential to take advantage of opportunities in real time. It’s the marketing teams that can identify who is purchasing what, when, why and then optimize on-the-fly based on those actions that will see the most favorable ROI.
Affinity Models: Build affinity (also called lookalike) models based on your most valuable customers to acquire new customers that look and behave like your best customers.
Quick and small wins are easy in performance marketing; scaling spend based on those wins is another story. Perhaps you generated 100 new customers; well the next question is how do you generate 1,000? 100,000? 500,000? One of the best tools available to marketers is affinity modeling.
While not a new concept, the ability to target new customers who share similar demographics as your best customers has never been more robust or integrated down to purchases. All of the targeting options listed earlier (and there are many more) in this article guarantee marketers the opportunity to run multiple campaigns to aptly targeted audiences. By targeting new customers based on your best customers, you’ll find a new level of quality that you didn’t have before.
Cohort Analysis: By examining your best performing cohorts, advertisers are able to understand historical performance so that learning’s can be applied to current and future campaigns.
For instance, when analyzing historical performance, have you ever wondered what made a certain time period so successful? Maybe it was a certain day, week, month, quarter or holiday season…or perhaps it was a new targeting, bidding or optimization strategy?
Being able to review revenue based on cohorts allows marketers to visually identify data-based trends and results quickly, and then apply those learnings at scale to current or future campaigns.
By adhering to an overall action strategy, you’ll ensure you’re doing everything in your power to run the most successful performance marketing program possible. Start by internally reviewing “attract, details and plans,” and then focus on acquiring the best possible customers based on their lifetime value (and using maturity curves, affinity models and cohort analysis). The targeting options available at your fingertips on Facebook alone are over a googol. That’s right, there are over a googol targeting combinations on Facebook alone so being able to focus on the “right” targeting options will be what separates the best in class advertisers from the rest of the field.