Measure success

Understanding lifetime value

Overview

Measure and understand customer lifetime value using Search.

Not all customers are the same. Some marketing channels or campaigns bring in high value customers, while others bring in low value customers. Yet most advertisers have the same targeting and efficiency goals for all of their marketing campaigns.

Having lifetime value (LTV) scores for your customers and tying them back to the acquisition channel, campaign or keyword allows you to understand the Search as well as site behaviour of your highest value customers. These insights can then serve as fuel to shift your budgets and optimise these audiences in your campaigns to increase return on ad spend.

From that base, you can create Similar Audiences based on high LTV customers to drive quality acquisitions. When remarketing, you can bid higher or lower and tailor your creatives depending on the customer’s value.

George Popstefanov, CEO of PMG, has advice for marketers taking this approach. “Don’t make changes to your creative and branding until you know you’re reaching the right customers – those that have the most high value for your brand. To do this, you need to truly understand who your audience is, and the best way of interacting with them. Today, it’s the brands that are able to drive customer lifetime value for the right customers that will see long-term success.”

Key takeaways

Measuring and identifying your most valuable customers (in Search and beyond) and using that information to optimise and strategise will set you up for success.

Next steps

  • Maximising customer lifetime value

    Hear from industry experts on maximising customer lifetime value.

  • Lifetime value score

    If you have repeat purchasers that transact more than 1.5X per year, you can consider building a lifetime value score, or work with Google to build one.

  • Optimise effectively

    Import LTV data into Google Ads to optimise effectively.

  • Target effectively

    Import LTV data into Google Ads to target effectively with Customer Match.

  • One

    Maximising customer lifetime value

    Hear from industry experts on maximising customer lifetime value.

  • Two

    Lifetime value score

    If you have repeat purchasers that transact more than 1.5X per year, you can consider building a lifetime value score, or work with Google to build one.

  • Three

    Optimise effectively

    Import LTV data into Google Ads to optimise effectively.

  • Four

    Target effectively

    Import LTV data into Google Ads to target effectively with Customer Match.

Resources