This is a guest post by Chris Winterhoff, who is an expert in Growth. Currently Chris is a fractional Growth leader and growth advisor at Perceptycs.
Previously he headed Growth at Onto, a UK platform for all-inclusive electric car subscriptions. And was also Head of Marketing at Mashroom, which covers the UK housing industry.
Guest Author: Chris Winterhoff
The easiest way to increase Customer Lifetime Value? Do micro audience targeting on Meta.
And I mean micro audience targeting via your ad creative. Not via your adset.
So where’s the revolutionary tactic, Chris?
It’s not revolutionary. In fact, it’s fairly basic. But I’ve not seen many brands apply a robust methodology when it comes to ad creative creation and testing. More of a “just-churn-some-ad-creative-out-and-whack-it-on-Meta” approach.
Over the last couple of months I’ve been testing various meta ads each highlighting a different product benefit angle. Tapping on the CTA took the user to different captive landing pages (i.e. you can’t navigate to any other section of the site) and customers could purchase from an identical product range on each of the page types.
Ok, it’s not a perfectly controlled test for a variety of reasons. But the results were pretty obvious.
We had different purchase behaviour coming from each ad angle. In this test we found that flexibility that came with the product over competing solutions drove the highest CLTV (vs pricing, ease of cancellation angles on other ads etc).
We tracked this by tracking the ad source, then assigning tagging on those customers who purchased.
You don’t need to do an active test like this. It suffices to have a robust naming, testing and ad creative production methodology rolled out.
When auditing some ad accounts and setups, I’m always surprised at how few brands actually have a methodical approach to exploring the angles customers care about. Nor do they have a methodical approach to measuring and tracking CLTV that each ad creative drives.
It then may also not be surprising to you that these same brands spend the equivalent of less than 5% of their advertising on creative research and ad creative production. Nutty, given that creative is now where you can gain the biggest edge over your competitors.
If you want to chat about rolling out a testing methodology for your ad creatives to build better LTV, shoot me a DM.
