The Salesforce Shopping Index, which pulls data from a majority of the top 30 U.S. retailers, anticipates flat year-over-year holiday spending in 2023. That’s not catastrophic news in a hard-to-predict economic landscape, but it does mean there will be a whole lot of advertisers striving to hit targets when growth is relatively tough to come by.
There are a few ways to approach this. The “easy” ways—which might be good for the top line at the expense of the bottom line—are to outspend the competition or offer steep discounts and aggressive promotions to acquire customers.
But advertisers that go that route are ignoring an underutilized strategy that has the potential to dial up revenue while preserving budget and margins: focusing on their highest-lifetime value (LTV) customers.
Doing this right depends on the integrity of a brand’s first-party data. A clean CRM set-up will enable a marketer to segment its customer base into LTV segments (with the most valuable being “high purchase price” and “high purchase frequency.”)