Attribution: Last click or lifetime value? How to focus acquisition on quality over quantity.

Webinar: Not all visitors are created equal June 2015

Ernest Oppetit

Product Manager Qubit

Robin Trickett

Senior Strategist Qubit ‣ The acquisition challenge

‣ Using data to focus acquisition efforts on predicted ‘quality’ customers

‣ Demonstration using Qubit’s tools

‣ Q&A

Agenda

Qubit is a global leader in digital optimisation

• Segmentation

• Analytics

• Personalisation

• Testing

Profitability is driven by focusing acquisition investments on those customers most likely to generate high lifetime value

Acquiring customers can require significant investment1

Some customers will go on to renew/increase share of wallet, others will churn shortly afterwards

2

Acquisition success should be measured on lifetime value, as opposed to initial conversion value

3

Two challenges: i) How should ‘predicted high lifetime value’ customers be identified

before they’ve even converted? ii) How is their revenue opportunity then maximised?

The revenue opportunity of ‘Predicted High Lifetime Value’ customers can be increased using 5 levers

Pre-siteA On-siteB Post-purchaseC

PURCHASE CYCLE

REVENUE LEVERS

QUBIT APPLICAT-IONS

Increase volume arriving on site

1 Increase conversion rates

2

Increase conversion values

3

Increase re-purchase / renewal rates

4

5 Increase re-purchase / renewal values

• Attribution modelling

• LTV modelling • Audience

segmentation • Personalisation

& testing

• ESP integration • Audience

segmentation • Personalisation

& testing

Pre-siteAIncrease volume arriving on site1

‣ The objective is to increase the volume of visitors arriving on site who are most likely to go on and have the greatest lifetime value

‣ This requires attribution modelling to identify those channels which fulfil this requirement

This attribution model needs to allocate a behavioural lifetime value to each channel, and if appropriate, keyword

1. Identify those channels, campaigns and keywords which generate greatest lifetime value - Value should be

measured using a behavioural model as opposed to first click or last click

2.Optimise marketing spend accordinglySEM SEO Affiliate Social

LTV (behavioural) First clickLast click

CHANNELS

KEYWORDS

PRE-SITEA

On-siteBIncrease conversion rates2

‣ Step one is to map out a profile which defines what a prospect looks like who is likely to go on to have a high LTV

‣ Step two is to identify these visitors when they arrive on-site

‣ Step three is to deliver personalisations to these visitors to increase their conversion rates and values

Increase conversion values3

Firstly, a profile needs to be defined which can be used to identify predicted high LTV customers when they arrive on-site

ON-SITEB

Identify pre-conversion characteristics of high LTV customers

Create a profile to enable the probabilistic identification of these visitors

Arrival data Site footprint Provided data

• Channel • Keyword • Device • Location • ……..

• # sessions to purchase

• # pageviews to purchase

• Page types viewed

• ……..

• Quote value • Marital

status • Age • Occupation • ……..

• Attribute of a potential high LTV customer

VISITOR PROFILE: Predicted high LTV customer

+ +

Decipher demo -

http://www.qubit.com/webinar/focus-acquisition-on-quality-over-quantity


On-siteBIncrease conversion rates2

‣ Step one is to map out a profile which defines what a prospect looks like who is likely to go on to have a high LTV

‣ Step two is to identify these visitors when they arrive on-site

‣ Step three is to deliver personalisations to these visitors to increase their conversion rates and values

Increase conversion values3

Secondly, once a predicted high LTV visitor is identified on site, a range of personalisations can be leveraged to increase conversion rate & value

ON-SITEB

50% match

Levers to increase conversion rate

Pre-populate form fields

Offer discounts


Re-order high value items

Pre-populate upsell items

‣ The accuracy at which a visitor can be matched increases with the number of sessions

‣ The closer the match, the more levers available to increase conversion rate & value


…….

…….


ON-SITEB

50% match


70% match


Offer discounts







…….

…….


ON-SITEB

50% match


70% match >90% match


Offer discounts







…….

…….

Deliver demo



Post-purchaseCIncrease re-purchase/renewal rates4

‣ Once the initial investment has been made in acquiring a predicted high LTV customer, further efforts should be employed to ensure they realise this potential

‣ This can be in the form of encouraging them to re-purchase/renew their subscription, or in the form of upsell and/or cross-sell

Increase re-purchase/renewal values5

Subsequent website visits provide an opportunity to target these high LTV potentials to drive further value from them; reinforce through email

POST-PURCHASEC

Target on-site during return visits Follow-up with targeted emails

Campaign mirroring

•Increase renewal / re-purchase rate ‣ Content recommendations ‣ Renewal offers1)

1) See churn reduction webinar for more details

•Increase renewal / re-purchase value ‣ Upsell and cross-sell recommendations,

personalisations and offers

•Highly targeted emails can be sent to pre-defined segments, reflecting the exact content they were viewing on-site

•If customers then return through email, their immediate on-site experience should reflect the content and nature of the email

i ii

iii

In summary, strategies should be in place across the purchase cycle of predicted high LTV customers, in order to maximise their value

Pre-siteA On-siteB Post-purchaseC

PURCHASE CYCLE

REVENUE LEVERS

STRATEGIES

Increase volume arriving on site

1 Increase conversion rates

2

Increase conversion values

3

Increase re-purchase / renewal rates

4

5 Increase re-purchase / renewal values

• Use behavioural attribution models to determine which channels are the best source of high LTV customers

• Identify the pre-conversion characteristics of high LTV customers in order to target this segment with personalisations and offers

• Once these customers have been acquired, ensure their value is maximised through further site and email personalisations

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Attribution: Last click or lifetime value? How to focus acquisition on quality over quantity.

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Transcript of Attribution: Last click or lifetime value? How to focus acquisition on quality over quantity.