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How to Find Customers on the Internet

One of the best ways to find customers on the internet is target customers that “look like” your current list of best customers. To do this, identify and analyze your most valuable customers then use this information to find customers on the internet with similar demographics.

Here is the step-by-step process to find customers on the internet with the highest value:

First, use the 80/20 rule (The Pareto Principle) to create a current list of your most valuable customers. The Pareto Principle, for this situation, tells us 20% of your customers create 80% of your revenue. These are your best customers. Who doesn’t want more of these, right?

You can identify them by the current amount of money they are spending with you. Or drill down and calculate their Customer Lifetime Value (CLV):

CLV = Average Value of a Sale X # of repeat Transactions X Average time a customer stays with you

Example:
A customer who spends $500 a month every month for five years has a CLV of:
$500 X 12 X 5 = $30,000 or $6,000/year

Once you have a list of your highest value customers create a set of demographics that they have in common. For example, are they all in the: same location? same age group? same income level? same gender? same interests? etc.

Now that you have a list of high value demographics, you can use it to target a Lookalike Audience (a group that looks like your best customers) which should convert much easier than just blindly targeting everyone.

You can also use the CLV to determine how much you are willing to spend to find customers on the internet, or to retain existing customers. Using the example above, how much time and/or money are you willing to spend on internet advertising (Facebook ads, Google Adwords, etc.) to attract a customer that will generate $30k for you over the next five years?

If Facebook advertising is one of your advertising tools, you can take the email addresses of your top customers and upload them to Facebook to create a new custom audience. Then create a lookalike audience from this custom audience.

Happy Marketing!
Paula

Ref: https://adespresso.com/academy/blog/10-ways-youre-not-using-facebook-custom-audiences/

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