How to create a higher lifetime value

So you are trying to create a higher lifetime value from your customers? Still trying to decide whether to run a CPL campaign to build a database or a straight CPA offer to drive sales? What about the brand? How are you going to cement that in the front of people’s minds when they think about your niche?

Creating the perfect acquisition model is a tricky business. At C7, we advise people to test a range of options with a view to see what best suits their offering. CPL can be a fantastic door opener and list builder. However, with GDPR very much in full flow, you may find the pool of potential lifetime customers not as big as it once was.

CPA is an option but certainly tougher to convert. As a new brand, you are trying to build trust which takes time. CPA is great once you’ve established your audience and perfected the message you want to deliver. Launching cold with a straight acquisition campaign however is not something we would recommend. Nothing screams ‘distrust’ like a brand you don’t know asking you for money.

Lifetime value does not come from your initial offer

To generate a high lifetime value, you have to forget about how the users were acquired originally and focus now on the part you play. Yes, I accept you have just paid Facebook, Google, Instagram, Snapchat, and an affiliate network lots of lovely money to drive you leads however you must accept they are just that…Leads!

You have presented them with a good enough offering to stop them in their tracks on email, display or sms and now you have their attention for a very small window. For those few seconds, they are in the right headspace to fill in your form and if your offer is strong enough, they will want to hear from you again.

The job of the paid media source is now done. The traffic has been delivered and the initial offering was effective. Well done advertiser and well done network. That was the easy bit, now the real work begins. As a brand, you must keep that customer engaged for a sustained period of time until they think of you naturally everytime something in your area comes up. That’s a tough gig.

The process of generating lifetime value starts now…

It still amazes me how many people expect magic to happen on the back of a lead generation campaign.

“Your traffic doesn’t stay on past the trial period”


“After the initial deposit, they never came back”

Why do you think brands like McDonalds, BMW, Ikea and now even Facebook are still putting so much money into TV ads? Surely these brands are big enough now that people will just use them regardless? Most of the ads are not even specific to a new product or service. They are just general messages right?

The point of these ads is to positively reinforce the message that these products and services are still there. They keep them in people’s minds, preventing Burger King, Mercedes, John Lewis and Instagram becoming the dominant force and taking over. These ads are essential, regardless of the companies size or following.

There will always be competition for that exclusive place in someone’s mind. It’s a small spot that stores the handful of brands we love most. The ones that have earned our trust and for now at least, can do no wrong. We can only make so many decisions in a day and switching between who we are loyal to every week is not a decision we want to make.

Lifetime value costs money and takes time

Look at your engagement process that new users go through when they join you.

Is it effective?

Are you putting too much pressure on the initial traffic source to deliver you life long customers?

Are you spending enough money upfront with a longer term view of making it back? Have you realised that the more lifetime customers you have, the less you spend on acquisition?

Are you asking for your customers opinion of what you do? How you could improve and what they would like to see next time?

Are you letting them know how often they will hear from you and on what days so they create a habit around looking out for your message?

Are you offering something they can’t say no too?

Are you offering more than just your product (advice, tip & tricks, genuine content they can use, to show you are an authority in your field)?

Are you asking them to follow you on social media and giving them a reason to do so?

Are you even active on social yourselves so people see the personality behind the brand?

Are you running retargeting ads that reinforce your message?

Do you understand the psychology behind what you are trying to achieve and matching your strategy to it?

Lifetime value is the ultimate goal.

Whether lifetime means a month or 50 years, the same rules apply. As an advertiser, you are solely responsible for keeping people engaged with your brand beyond the point of entry. It is impossible for any traffic source, no matter how targeted to deliver lifelong customers with one campaign.

If you would like to know more about the best ways to generate lifetime customers for your brand, C7 would love to help.