When buying traffic most of the companies like to talk about quantities and not about quality. The ones that do talk about quality usually refer to player value. “We did 2781 FTDs this month with average player value of $250”.
New traffic is the new blood for every business and it’s the most important thing in my opinion. Without it, it’s difficult to grow your company and reach your goals (i.e KPIs).
But what is the right traffic? Few questions need to be answered to solve this complex and disturbing issue.
- How do you know that these 2781 will purchase again?
- What is the churn rate on these customers?
- How much did you pay for these new customers?
- What is the life expectancy of these customers?
Understand the purpose of buying traffic and your goals:
1. Cover cost (usually takes three to six months but might take longer according to your industry)
2. Make a profit (You should be able to make between five to ten time in less than 12 months, but again it depends on the industry you work in)
During my years as an online marketer in the online gaming industry I found that when buying traffic, age is the most important factor.
Older customers usually mean:
- Loyalty – 5/5
- Money – 5/5
- Suspicious – 4/5
- Curiosity – 1/5
New traffic is the new blood for every business and it’s the most important thing in my opinion. Without it, it’s difficult to grow your company and reach your goals (i.e KPIs).
But what is the right traffic? Few questions need to be answered to solve this complex and disturbing issue.
- How do you know that these 2781 will purchase again?
- What is the churn rate on these customers?
- How much did you pay for these new customers?
- What is the life expectancy of these customers?
Understand the purpose of buying traffic and your goals:
1. Cover cost (usually takes three to six months but might take longer according to your industry)
2. Make a profit (You should be able to make between five to ten time in less than 12 months, but again it depends on the industry you work in)
During my years as an online marketer in the online gaming industry I found that when buying traffic, age is the most important factor.
Older customers usually mean:
- Loyalty – 5/5
- Money – 5/5
- Suspicious – 4/5
- Curiosity – 1/5
Young customers usually mean:
-Loyalty – 1/5
- Money – 1/5
- Suspicious – 2/5
- Curiosity – 4/5
Every company needs to determine its own age group segments and build customers journeys according to it. For example, defining the following age groups:
1. 18 – 24
2. 25 – 34
3. 35 – 46
4. 47 – 61
5. +62
Based on the following table.
After you define these groups give them a priority according to your results.
1. 18 – 24 - Low
2. 25 – 34 - Low
3. 35 – 46 – Medium
4. 47 – 61 – High
5. +62 – High
High means you want to get as many of customers in that group (maybe run different promotions when your existing customers get to these age groups, just a thought :-) )
Try to have two high level customers and focus on them the most.Now after analyzing your database according to this article with many amazing tools as: R studio, Power BI, Tableau and more.
Now contact your affiliates and tell them they have work to do!
Remember it does not help if you buy 120 new customers that are in the lower priority level for you. You will never cover cost and you won’t reach your goals.
I really hope this article was helpful for you and thanks for spending your time reading it.
-Loyalty – 1/5
- Money – 1/5
- Suspicious – 2/5
- Curiosity – 4/5
Every company needs to determine its own age group segments and build customers journeys according to it. For example, defining the following age groups:
1. 18 – 24
2. 25 – 34
3. 35 – 46
4. 47 – 61
5. +62
Based on the following table.
Age Group
|
Average Customer Value in 12 months ($ USD)
|
Life Expectancy (Days) - between first to last deposit
|
18 – 24
|
87.57
|
15
|
25 – 34
|
347.70
|
31
|
35 – 46
|
755.23
|
63
|
47 – 61
|
1,326.94
|
120
|
+62
|
3,204.09
|
253
|
After you define these groups give them a priority according to your results.
1. 18 – 24 - Low
2. 25 – 34 - Low
3. 35 – 46 – Medium
4. 47 – 61 – High
5. +62 – High
High means you want to get as many of customers in that group (maybe run different promotions when your existing customers get to these age groups, just a thought :-) )
Try to have two high level customers and focus on them the most.Now after analyzing your database according to this article with many amazing tools as: R studio, Power BI, Tableau and more.
Now contact your affiliates and tell them they have work to do!
Remember it does not help if you buy 120 new customers that are in the lower priority level for you. You will never cover cost and you won’t reach your goals.
I really hope this article was helpful for you and thanks for spending your time reading it.
Thank you for this article.
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