Using Predictive LTV to Juice Up Marketing Campaigns
Last fall, Voyantis CEO Ido Wiesenberg shared a TC+ post with several tactics for reducing customer acquisition costs via predictive modeling. In a follow-up, he explained how to use predictive lifetime value (LTV) to create "more targeted, effective acquisition strategies that focus on acquiring and retaining customers."
The Power of Predictive LTV
Adding predictive LTV to decision flows does more than just identify lucrative customers early in the sales cycle – you can also use it to set performance targets and help teams adjust campaign budgets midstream. According to Wiesenberg, "Not using predictive LTV to inform decisions is like going on a hike, not knowing where it will end and how hard it will be." He adds that combining CAC with predictive LTV optimization balances risk and growth.
Real-Life Examples of Predictive LTV in Action
This post includes real-life examples of predictive LTV decisions that can help generate higher returns on ad spending or identify underperforming campaigns that can be stopped in their tracks. By incorporating predictive LTV into your marketing strategy, you’ll be able to:
- Identify high-value customers and focus on acquiring more like them
- Set realistic performance targets for your team
- Adjust campaign budgets midstream to optimize ROI
The Benefits of Predictive LTV
Predictive LTV offers a range of benefits for businesses looking to optimize their marketing strategy. Some of the key advantages include:
- Improved customer acquisition costs (CAC)
- Increased returns on ad spending
- Better identification and targeting of high-value customers
- Enhanced decision-making capabilities
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The Months Following an Acquisition
However, "success is not guaranteed," writes Jaggaer CFO Jeff Laborde in a TC+ explainer. He notes that the months following an acquisition are critical in determining the success of the deal. Some key considerations include:
- Integrating acquired companies into existing operations
- Managing cultural differences between merged teams
- Identifying and addressing potential synergies
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Conclusion
Using predictive LTV to juice up marketing campaigns is just one of the many topics that will be covered at TechCrunch Disrupt 2023. By incorporating predictive LTV into your strategy, you’ll be able to improve customer acquisition costs (CAC), increase returns on ad spending, and better identify and target high-value customers.
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About Walter Thompson
Walter Thompson is Managing Editor of Contributions at TechCrunch. He oversees the guest contributor program, which includes TechCrunch+ articles and opinion pieces about tech-related issues. Prior to his current role, he worked at a number of startups in various roles and as City Editor of Hoodline.