Leverage third-party systems to get the most out of first-party data. AI-powered companies such as BlackCrow.ai, for example, can pull in your first-party data, translate data into Klaviyo and open the re-engagement window from seven to 30 days in a privacy-safe way. Understand where Apple, Google, walled gardens and privacy regulations are killing formerly accessible third-party data integrations, and research an emerging crop of solutions to see which might fit your marketing goals.
Put AI to work on lifetime value
The concept of lifetime value has been around for a long time, and it’s picking up steam lately as new-customer acquisition costs become increasingly prohibitive. Most marketers are familiar with some strategies, ranging from goals for customer retention to upsells to subscription renewals.
A more nuanced approach includes segmentation of a customer base into four lifetime value quadrants, whose axes are defined as number of transactions and transaction size. Along with developing strategies to address each quadrant and move customers up and to the right, segmentation allows you to define different audiences and identify profitable acquisition-cost thresholds for each. This can be especially powerful when fed into advertising platforms to find similar users, as described above. But even that’s not scratching the surface of lifetime value-focused marketing.
AI-driven platforms such as Pecan and Lifetimely are providing transformative growth results through Predictive LTV, which helps identify high-value new customers more efficiently and can help provide data on current customers—for example, which might be most likely to churn without further action.
Making big improvements in any of these three initiatives will net more marketing benefit than the most cutting-edge ChatGPT deployments. That’s not to say ChatGPT and similar AI tools should be ignored but keep their impact in perspective. Allocate time and budget where you’ll see a far bigger payoff.