Google Chief Search Evangelist Nicolas Darveau-Garneau says brands need to rethink their targeting strategies to maximize the long-term value of customers.
Three ways to do that:
- Identify the indicators that can reveal your most valuable customers: Zip code, amount of first purchase, loyalty-club signup, online device, household income, search keywords - whatever is available and relevant to your business.
- Analyze customers' lifetime values and segment accordingly; market more aggressively to existing customers likely of greatest long-term value; use Google's intent signals to identify potential new high-value customers.
- To set acquisition ad budget to optimize return, calculate the lifetime value of a new customer, net out other investment needed to acquire that customer, and set ad budget accordingly. Create different return targets for different customer segments, based on lifetime value.
"[A]n individual sale is great, but acquiring high-value, loyal customers will pay off more in the long run."
Note the part about using Google's intent signals - that's the area in which no other ad platform can yet match Google.