Marketing beyond Facebook to find, convert, and retain LTV customers in 2022
By Nikita Patel
Senior Editorial & Marketing Manager at The Lead
As we celebrate the achievements of this incredible set of Foremost 50 brands, we are also aware that 2022 will bring a different set of challenges for all brands. Supply chain issues coupled with inflation will continue to dampen momentum. However, the most prominent challenge will be the ability to acquire new customers cheaply.
While CPMs have been on the rise for the last few years – IOS 14 changes have really changed the marketing landscape. The dominant customer acquisition channel for most D2C brands — i.e Facebook — has increasingly become a less reliable source of growth. Marketing beyond Facebook has been a popular topic of discussion at our events in the last few years, but the urgency has recently escalated. We asked our friends at Within, a leading media agency, to verify the trend that we had noticed anecdotally. The aggregate spend data of WITHIN clients from the last year suggests that for most DTC brands, the revenue attributable to Facebook has shrunk significantly over the last year.
Digging deeper, the Facebook spend as a percentage of total and percentage of attributable revenue both are falling regardless of category — home, apparel, or beauty — and type of brands — legacy vs digital-native.
From TikTok to live streaming – there are many new platforms and tactics emerging to fill the marketing funnel, and many of the Foremost 50 brands continue to rely on earned media to gain new customers
However, the most important conversation emerging is how to find, convert and retain high LTV customers. According to Meyar Sheik, President & Chief Commerce Officer at Kibo, “With online interactions on the rise and brand loyalty up for grabs, it’s more important than ever for brands to master personalization — but very few are doing it optimally. Despite all the data at our fingertips, it’s tough to deliver 1-to-1 personalized experiences across every channel while responding and adapting to customers’ changing needs and expectations. But for brands that get it right, the potential impact is huge. According to recent research from McKinsey, companies that capture more value from personalization see 40% more revenue from personalized marketing actions or tactics.”
D2C brands have to make most of every dollar spent on marketing in order to get to the next level of growth.
Kibo Personalization empowers marketers to make customers feel understood and appreciated on an individual human level. Powered by industry leaders Monetate and Certona, Kibo Personalization helps brands to deliver a holistic personalization strategy covering all owned properties. Delight consumers with exceptional cross-channel experiences to increase engagement, conversions, and—ultimately—customer lifetime value.