How To Get High Value Customers From Cold Ads
Have you been working your tail off to deal with poor-performing paid ads after all of the iOS tracking changes and COVID-related market challenges? If you aren’t seeing any improvement, you aren’t alone.
We’ve been hearing from media buyers who are frustrated every day.
They’ve reduced their CPL from cold ads through sheer force of will and intense trial-and-error, but still aren’t seeing the ROAS needed to justify their advertising budget.
Frankly, because CPL is ultimately a pretty worthless metric to be using.
CPL does not focus on the results that matter.
Actual sales are the ONLY results that matter.
And not just one-time sales, but repeat customer sales.
Those kinds of results take time. It takes time for a click or a lead to become a customer. It takes time for that customer to make a second, third, or 15th purchase.
If you are only optimizing your ad results based on leads or even just one sale, you’re going to be disappointed in the results.
How to Find and Scale High ROI Ad Campaigns for High Value Customers
Here is what you need to do to get back to profitable, high revenue from paid advertising:
1. Know Your Buying Cycle Time
Buying cycle time is the time from a new click or lead to when a user finally makes their first purchase.
If you want to make informed decisions, you will need to get an idea of the average buying cycle time for your product.
Wicked Reports’ clients do this by looking at their First Click or New Lead Velocity Report.
This is the information you need from a new campaign before deciding to chill, kill, or scale it.
2. Collect Data On New Campaigns
Be patient when you launch a new campaign. Wait at least one average buying cycle before you decide whether to chill or scale it.
If you don't wait, you're probably going to kill some positive ROI campaigns and without realizing it. This could be your best campaign ever! But you won't know if you don't take the time to find out.
That's why knowing the Buying Cycle Time is so powerful. There's no guesswork on whether it's time to take action on a campaign or not. You know exactly how long to wait before reviewing results and making a decision.
Once you know a campaign's ROI after one buying cycle, you can decide whether to kill, chill or scale it.
You'll want to kill any campaign that is negative ROI after a buying cycle, chill campaigns that are breaking even or barely positive, and scale campaigns that have nice and juicy positive ROI.
If you are chilling or scaling a campaign, moving forward you will focus on not just buyers, but what the average value of those buyers is.
The higher the LTV, the better that campaign is. You now can start to see what the patterns are for high LTV buyers.
Do they typically click on a certain type of cold ad copy or a certain platform?
What keeps them engaged middle of funnel?
Which content gets them to finally make the purchase?
What offers get them to buy over and over or keep their subscription longer?
You can really drill down here and discover how to bring in those high value customers, which is going to drive your ROAS higher and higher over time.
4. Optimize Your Ad Campaigns for High Value Customers
This is the time where you start spending on campaigns based on high customer LTV instead of just positive ROI or cheap CPL.
Pull your budget from the poor performers and focus on the heavy artillery to get the best results.
Your ROAS is going to grow over time as you bring in more and more repeat customers, driving up your customer LTV.
This is how advertisers succeed in this difficult environment. You can't afford to keep bringing in new cold customers as costs are going up. It's essential to squeeze the maximum value out of every expensive new customer brought in from cold ads.
Wicked Reports is designed exactly to do this.
If you're looking to get the best bang for your cold ads, now is the time to sign up for Wicked Reports.