With new privacy rules continually changing the landscape of third-party data, brands are increasingly becoming more focused on understanding their current customers in order to make more sophisticated marketing decisions. One approach to this is utilizing customer lifetime value (LTV) to segment your best customers and ultimately find more of them. In this article, we’ll provide a brief outline of LTV but you’ll want to attend Hero Conf 2022 in Austin, Texas for a more in-depth breakdown with key takeaways.
What is customer lifetime value?
The lifetime value of a customer, or customer lifetime value (LTV), represents the total amount of money a customer is expected to spend in your business, or on your products, during their lifetime.
*Note on calculating LTV*
Now to be fair, there are a number of varying ways to calculate LTV going from relatively simple, to complex and complicated. This article will not be focused on evaluating the best approach or even how to calculate LTV. I do have some preferred tools which I’ll share at Hero Conf- but ultimately finding the best tool that works for your brand is important.
Large brands like Amazon and Starbucks have documented how their understanding of LTV has influenced their marketing and overall business decisions. Smaller brands who often have limited resources in their pursuit of growth often overlook LTV or don’t truly appreciate how helpful it can be to their overall growth.
Which campaign is performing better?
Take a look at the chart below – at a glance – which campaign appears to be performing better?
|Campaign A||Campaign B|
|Cost / Acquisition (CPA)||$10.00||$16.67|
Most digital marketers, including myself, would say campaign A. More purchases (revenue), lower CPC, and lower CPA. Seems pretty obvious.
But a question that’s worth asking is – what if campaign B focused on acquiring a better quality customer? Someone who purchased a higher average amount bought more frequently, and stayed, is a customer of the brand for a longer period of time. Ultimately, a customer with a higher LTV. The question of which campaign is performing better looks a lot different when LTV is factored as a metric and could lead to very different marketing approaches.
Looking beyond CPCs & CPAs
These are conversations that more brands should be having. Looking at CPCs, CPAs and the revenue from the first purchase are all very common KPIs, but they can be misleading and myopic. Factoring in LTV provides a more holistic approach to making marketing and overall business decisions.
Going a step further, brands that decide to utilize LTV often come across the hurdle of how to efficiently segment their best from worst customers. In the workshop, I’ll share the most effective analysis that we’ve found. For brands on Shopify, we’ll take it a step further and offer a valuable app that will both help solve LTV and segment your customers as well. There are a number of apps in the Shopify App Store that can help calculate your LTV and effectively segment your customers for you, but there’s one that we’ve found to be leaps and bounds ahead of the rest.
Finally, once you’ve segmented your customers, you now have the ability to supercharge your marketing efforts to find more of your best customers, while also excluding targeting anyone who you believe might be exclusively bargain hunters or cherry pickers.
If you’re interested in scaling your brand, you’ll want to attend this workshop. Understanding LTV and how to find more of your best customers will be an invaluable tool that will help move the needle for your brand in 2022. Key takeaways will be:
- How LTV has shaped the decisions of large brands we all know
- How LTV provides a more holistic picture of success within paid search
- How we’ve helped a women’s apparel and homeware brand find more of their ideal customers
- Tactical insights (including apps/tools) on how to implement an LTV strategy within paid search
Hope to see you there!
How to Leverage Visual Search for e-Commerce Growth
Online shopping is booming as people become more comfortable buying online as opposed to in-store. It’s easy, comfortable, and convenient, with the possibility of finding a wider range of products at better prices.
As with everything in the digital space, online shopping is evolving, and visual search is the latest opportunity to increase sales, boost revenue, and grow your customer base. So let’s learn more about visual search and how to optimize content to maximize profits.
What is Visual Search?
Visual search is appropriately named as it involves users searching with an image, as opposed to a keyword.
The reasons why someone would do this come down to the following benefits:
- Visual search makes it easier when you don’t know what you are looking for
- It can help to match a particular style
- Your search query may be long and complicated, so an image simplifies things
Consider visual search as a targeted and user-friendly method that involves pointing a camera at something to find an exact match or something similar.
The Differences Between Image and Visual Search
They sound similar but are incredibly different. Image search requires you to type in a query in the search box, with image results returned based on your keyword; a method that people are very familiar with.
On the other hand, visual search requires an image or your Google Lens camera to search and return images that match or are similar. Voice, visual, and conversational search are improvements on typing search, all with the goal of making life easier for us all.
The Popular Visual Search Options
The Pinterest lens was the first social media platform to use visual search. In the Pinterest app, a new or existing photo can be used to complete the search. This has been extended to hybrid search, which uses the aesthetic of an existing pin to find similar items, and the “complete the look” feature, which can generate case-based recommendations to match an outfit or room layout and style.
Google Photos lets you use an existing image for a visual search with the ability to identify over 1 billion items. You can also scan your environment to search for things in reality or have Google identify and recommend items on a menu. Other popular features include the ability to translate text from print directly onto your phone, identify animals and plants, and historical facts about your location.
Snapchat camera allows you to search for products on Amazon by pointing it at a physical product or barcode. If recognized, an Amazon card will appear on-screen with a link to buy on Amazon.
Visual Search Issues
Before we dive into optimizing your store for visual search, it is important to be aware that this new innovation still needs some improvements. Lenses commonly auto-select the wrong focal point, categorize a person instead of a product, or display items that are out of stock.
It is vital to be aware of these pitfalls as they may cause you to lose some sales along with the trust of your customers. Optimizing your images correctly can help lower the risk of this, however.
How to Optimize for Visual Search
Optimization of all kinds is important, as emphasized in this e-commerce SEO case study. Visual search success comes down to optimizing your images. By doing this, you will hopefully avoid the visual search mistakes mentioned above. To optimize your images and truly leverage the benefits of visual search, do the following:
- Submit image sitemap to Google
Ensuring your images are indexed is the first step, and you do this by submitting image sitemaps. With basic product data from the shopping feed, visual search technology will be able to understand your content.
Sync from your site with the Google merchant center and Pinterest catalogs to keep product info updated, allow people to search by brand, and avoid penalties from Google.
Put your USPs in the product description (especially free shipping), as this can help you get the much sought-after click. With a relevant schema for all images and rich pins to your site, you reduce friction and potential frustration by eliminating out-of-stock items from the user’s feed.
- Standard image optimization
We know about optimizing site images for site speed and user experience, but they also help with visual search. One of the most important elements is image size. Keeping your image sizes under control helps your website load faster, which reduces user frustration, and much like personalized content which helps users understand the information they’re seeing is specific to their needs, it can be the defining factor when it comes to making or losing the sale.
Use appropriate, targeted, and descriptive file names for all of your images along with alt-tags, which means an alternative tag, a name that appears in place of an image if it fails to load. The alt-tag text is also read by search engines to help them understand the purpose of the picture. Be sure to use the most relevant alt-tag for the image, as this can impact your rankings and boost sales. An SEO booster can help with all of this!
While all of this sets your digital assets on the right path, we also recommend looking into having a local presence in the real world to reach customers in cities outside of your local area. By allowing them to call you when they have an issue (which you can do by providing a local phone number), you can increase customer satisfaction!
Making the Most of Your E-commerce Opportunities
As an e-commerce store owner or digital marketer, it is always important to be aware of the opportunities that arise in the digital space, like visual search. Utilize the emotions of your audience via social media and adapt your content to be attractive and relevant to improve discovery, engagement, and above all, sales.
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