Earlier this year, Bamboo’s CEO Daniel Pearson, wrote how we’re now entering a “perfect storm” period in digital advertising.
“Our growth programs are dealing with the following headwinds, all at once:
- Inflation, which suppresses customer demand.
- The world reopening, which alters customer behavior.
- Algorithmic signal loss, which diminishes ad targeting quality, which results in higher CACs and sometimes lower LTVs.
- Supply chain issues, which causes more “out of stock”, which decreases LTVs.
- Peak social media and peak streaming, where we no longer benefit from an ever-growing pool of eyeballs and time spent consuming content (and our ads), which results in faster CPM growth.
Even in this perfect storm, the news is not all bad. There are still many ways to win.
Companies who prudently measure their success based on their full customer lifecycle continue to find ways to improve. Many businesses are still growing quickly and sustainably through the storm and earning their CACs back on reasonable timelines.
At Bamboo, we’ve focused our advertising work in this way for years and we’ve been able to help our clients weather this storm quite successfully so far.”
If May 2022 was the beginning of the storm, in September 2022 the storm is well underway.
From layoffs and hiring freezes at big tech companies like Google, Facebook and Microsoft, talks of a recession are in full swing. Vanguard projects the likelihood of a U.S. recession in the next 12 months at about 25%, but in the next 24 months? Roughly 65%.
If brands are not prioritizing lifecycle marketing yet, there’s no time like the present (and no time to waste). This could be the key to staying afloat and improving profitability in ever changing markets, while also increasing customer LTV.
“For those who are not measuring their success based on their full customer lifecycle: There is no time like the present.”
We’ve teased our next service at Bamboo for a few months now, Lifecycle marketing, which will be our first step beyond advertising, to help clients shift their lifecycle efforts (email, push, SMS) to focus similarly on improved payback periods and increased LTVs.
We’ve hired our first Director of Lifecycle Marketing at Bamboo, Cory Smith, to lead the charge for our clients. With an in-house team focused specifically on Lifecycle, we're equipped to evaluate how communication efforts can align with advertising efforts to reach KPIs.
Leveraging a thoughtful Lifecycle approach allows you to get the right piece of communication, via the right channel, at the right time to prospective and existing customers. Expanding into Customer Relationship Management (CRM) and Lifecycle services will allow us to hone in on shortening growth budget paybacks and increasing customer LTV. Our Lifecycle team can help make this happen.
To learn more about Lifecycle marketing, read Cory’s first blog post on nailing the welcome message, the first step in creating a solid lifecycle marketing welcome series.