For digital marketers, acquiring new customers is not just a goal; it’s an essential strategy for growth and sustainability. Google’s Performance Max (PMax) offers features for customer acquisition, specifically tailored to enhance lifetime value (LTV) and strategic targeting. In this article, you will learn a few strategies to help you leverage these features and unlock targeted customer acquisition results.
Understanding the Shift in Google’s Strategy
For years, Google’s bid engines have been under scrutiny for favoring existing, non-incremental customers. This approach, while effective in maximizing return on ad spend (ROAS) in the short-term, overlooked the bigger picture of sustainable business growth. In response, Google introduced new customer acquisition features in PMax, marking a significant shift towards a more balanced and long-term strategy focused on LTV.
Detailed Overview of PMax Customer Acquisition Features
Let’s break down the three innovative features currently available in PMax, Shopping, and Search campaigns:
1. Bid Higher for New Customers: This feature allows marketers to alter the conversion value of a new customer. By doing so, you can signal the bidding algorithm to prioritize new customer acquisition, tapping into a segment that can potentially offer higher ROAS due to the inflated value assigned to them.
Implementation Tip: It’s advisable to overlay an additional value that reflects the expected lifetime value of the acquired customer. Using an average CLV for this purpose can offer a balanced and realistic approach.
2. Exclusive Focus on New Customers: By activating this option, your campaign zeroes in on new customer acquisition, effectively sidelining existing customers. This dedicated approach ensures that your marketing resources are channeled towards expanding your customer base.
Strategic Note: To maintain engagement with your existing customer base, consider running a targeted parallel campaign ideally with a more aggressive target.
3. High-Value New Customer Acquisition (BETA whitelist only): This cutting-edge feature allows setting a threshold for new customer acquisition, aligning with your long-term CLV goals. This ensures that your marketing budget is spent on acquiring customers who are likely to offer the most value over time.
Getting Access: When we published this post, this feature is currently in BETA and requires whitelisting through your Google account representative.
Why it’s Important to Regularly Update Customer Lists
The success of these features largely depends on Google’s ability to distinguish new customers from existing ones accurately. For optimal results, ensure your customer match lists are regularly updated, and global site tags are correctly identifying customer segments.
Unlock More Targeted Customer Acquisition With iCLV
When combined with Crealytics’ proprietary iCLV marketing platform, these Google features unlock even greater potential. iCLV leverages predictive analytics to adjust the conversion value of new customers based on their anticipated LTV down to the individual customer order. This enhances the precision and effectiveness of your customer acquisition strategies.
Spend Your Budget on Acquiring the RIGHT Customer
Understanding and focusing on LTV is a pivotal shift in digital marketing strategies. It’s not just about acquiring any customer; it’s about acquiring the right customer. A customer’s value to your business isn’t limited to their first purchase; it extends over the duration of their relationship with your brand. By aligning your marketing strategies with LTV metrics, you ensure that your efforts yield long-term, sustainable results.
Best Practices for Implementing PMax Features
To effectively utilize PMax features, here are some best practices:
- Data accuracy: Ensure your data is accurate and up-to-date. This includes customer match lists and tracking tags.
- Segmentation and testing: Segment your campaigns to test different approaches and understand which strategies yield the best results.
- Continuous monitoring and adjustment: Digital marketing is dynamic. Regularly monitor your campaigns’ performance and adjust strategies as needed.
- Integration with other marketing tools: Combine PMax features with other marketing tools and platforms for a holistic approach.
- Collaboration with Google representatives: Stay in touch with your Google account representatives to stay updated on new features and best practices.
Google’s new customer acquisition features in PMax signify a monumental shift in digital marketing, emphasizing the importance of LTV and strategic customer targeting. As these features evolve, they are expected to become increasingly integral to successful digital marketing campaigns.
For marketers aiming to refine their customer acquisition strategies, understanding and implementing these features is crucial. Remember, the effectiveness of these tools is contingent on the quality of your data and your approach to campaign management.
Interested in leveraging these advanced features and integrating predictive analytics for enhanced results? Reach out and ask how we can help you level up your customer acquisition strategies in 2024.