Now that we have identified retention trends for discount strategies, let’s take a look at Acquisition Source. Tying retention data to acquisition sources based on first-click or last-click attribution will be key for your growth and acquisition teams to optimize marketing efforts.
This level of deep dive provides you with the ability to dig into retention and LTV metrics beyond the all too surface-level Return On Ad Spend (ROAS) metrics, we often fall victim to relying upon. What can be tricky about allocating media spend based upon ROAS vs. Retention and LTV data, is that we can obviously allocate dollars to sources that look good on the front end with a low CAC and high volume.
In reviewing the data below, we see that channels like IG Shopping produce high volume but low retention for this company, while lower volume sources like Bing and Google Display Network, drive lower volume yet decent retention rates.
A campaign manager may be tempted to focus more on IG Shopping due to volume; however with these insights they can refocus energy to expand efforts on channels that drive customers that tend to stick around, such as search and podcast
Leveraging this data along with promotional insights will also help inform your strategy.
For example, the lowest retention rates were assigned to Youtube, where the brand was actively testing the 35% Off Black Friday discount. Understanding these trends will help you fine tune your media acquisition strategy.