The calculation revealed that the chance of attracting the new customer for the brand typically reaches 5-10%, while the probability of selling products to existing customers reaches up to 60-70%. Realizing it, the agency made a decision to focus on returning customers extending their LTV and attract new ones based on additional user data, such as income level, etc.
The media agency lacked additional data management platform for performing segmentation by behavioral characteristics, interests, purchase history in order to deliver personalized messages to each audience segment at suitable time with dayparting on DSP.
The agency decided to adopt SmartyAds white label DMP in order to achieve these purposes:
Increase the customer lifetime by 20-30% via detailed audience customization and targeting
Decrease customer acquisition cost from $50 to $15
Gain 100% control over customer data in-house: consolidate it, and leverage while taking important strategic decisions
In few months after the agency has launched their DMP, it managed to upgrade the own media-buying ecosystem across various media channels. Using the customer first-party data collected via DMP enabled the media agency to identify the most valuable and high-paying segments of consumers for every brand the agency represented.
The cloud-based DMP platform acquired by the agency on the white-label basis made it easy to accumulate the consumer data from many different sources in one place, organize, categorize, break down into the segments to understand the whole picture.
The data gathered by DMP allowed to streamline further targeting and select the most effective communication channels for each marketing campaign directed towards new customer acquisition.
The platform made a huge contribution to the average customer lifetime extension enhancing it by 30%. The cookie-tracking function and data on advertising campaigns were used to engage those audiences that once came across the product, and had higher potential to convert during the retargeting campaign. Detailed targeting customization at the micro level has helped to decrease the customer acquisition cost from $50 to $15 which is more than 70%.
Due to the fact that in-house DMP platform aggregates both the first-party and third-party data across the channels, the segmentation and targeting sharpened which helped to increase the effectiveness of e-mail, SMM and other campaigns for clients. Google Ads, Facebook, and Youtube Ads were integrated with DMP along with demand-side platform. Same way the system enabled dealing with each pricing model (CPM, CPC, CPL) and ad format, including video/ native/ mobile and others.
The data management platform also facilitates reporting, delivering visualized custom statistics on demand in real-time. The machine learning made it easier to attract new customers and expand the existing customer base through look-alike modeling. Machine Learning also enabled marketing budgets forecasting and receiving suggestions considering viewability enhancement and cost per view reduction.