VBO means pushing Realtime LTV back to acquisition platforms like Google and Facebook, enabling the platform-native algorithms to set impression bids for prospects most efficiently.
Results for our customers:
(1) Lower CAC; Higher LTV
(2) Acquiring better customers automatically and consistently over time
The result can be massive, with an average increase in the High LTV Rate of customers acquired by 25% or more. In fact, Google, Facebook and TikTok tout value-based optimization based on Realtime LTV as the next back thing.
Imagine a consumer company acquiring 10,000 customers.
• Initially, this company acquires 2,000 high LTV customers and 8,000 regular customers
• The company then sets up a new conversion event based on LTV within an ongoing search campaign on Google to switch to tROAS vs. tCPA
• The Google algorithm takes 4 weeks to learn
• Ocurate helps you run a randomized Matched Market test and measure results to understand what the causal lift vs. the existing campaign looks like for you and your customer base.
• In the 4 weeks following the learning, VBO supported by Realtime LTV will achieve a 25% lift as proven by matched market tests
• This means: the company will acquire 2,000+(2,000*0.25) = 2,500 High LTV customers and 7,600 regular customers
• ROI from this one acquisition campaign will increase by 20%!!