One of the first things you’ll learn when you work with a good Facebook Ads agency is how to measure your the lifetime value of your customers. It sounds weird but this metric is probably your best option when it comes to converting customers, especially when you want to convert them into your customers.
With all of the metrics out there, it can be hard to choose which one to follow. However, using a customer’s lifetime value should be at the top of your list to maximize what you get out of the conversion.
What Is Lifetime Value?
Before looking at how it can help you, let’s see exactly what a customer’s lifetime value actually is. It is mainly a representation of how much profit a business can get from a customer throughout their relationship.
This number is the summary of how many times a customer will buy from a business, how much time they will spend with a business when buying, and how much they will be spending. All of this can be hard to digest information-wise. But if summarized in a simple number, it will be a lot easier to factor it in your business decisions.
How Can It Help?
Lifetime value is very important and should guide your main business decisions. For example, as a business owner selling a product, you will want to get the most bang out of your buck. Ads on Facebook cost money. You will want to ensure that the people you can convert allow you to get back the investment you made in advertising with them.
To put it in numbers, if your average sale is around $30, then your ads usually need to be not more expensive than that. However, advertising is rather hit-and-miss. Even with a couple of dollars per ad, you may end up needing several of them before getting a sale.
However, imagine if that single sale is not going to be the only one. If the same customer comes back and buys again or two times in a single year. Then your profit on the ad is a whole lot bigger.
Having lifetime value can also allow you to create lookalike audiences across different platforms. This means that you can target only the best of your customers, the ones that keep coming back and generating revenue for you.
Getting Lifetime Value Info
Lifetime value information is actually a lot easier to acquire than most people think. There are programs that calculate it and can make your life easier or you can just leave it to the pros. Ask your ad company to generate it for you and use it as a metric when devising a new campaign. With experts working on it, you can be sure that you will be getting the best value out of it.
Overall, a customer’s lifetime value is something that you shouldn’t ignore. Work with a professional ad agency that can use this information to its max potential.
Mutesix is not your ordinary Facebook Ads agency. We're profit driven and have helped 82% of our clients double their income in their first 12 months with us.
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