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5 creative ways to use Customer Lifetime Value Custom Audiences to boost your Facebook Ads

Customers are the lifeblood of any business. A continuous stream of customers patronizing your business will help it to grow. This is the reason why businesses concentrate on activities that can bring in more customers. In order to maximize your ROI, it is very important for you to know the lifetime value of your customers.

So, what is the Customer Lifetime Value?

Below is how Google defined the Customer lifetime value:

Customer lifetime value

In order words, Customer Lifetime Value is the value of your customer over a given period of your business relationship with them.

For instance, a customer that buys your products monthly has a higher lifetime value than the one that buys every year.

Customer lifetime value is very important because it helps you to determine the right customers to focus your marketing efforts on. The truth is that it is easy to sell to existing customers than to sell to new ones.  This is because it costs five times to attract a new customer than it does to keep an existing customer.

Customer acquisition cost

Do you know that you can use the customer lifetime value to boost your Facebook ad campaign?

Yes, you can.

Facebook released a new feature known as the Value Based Custom Audiences to help you reach customers with high customer lifetime value.

Facebook Value Based Custom Audiences

The new feature is added to the lookalike audience.  It involves uploading a customer list with figures for each customer. Then the smart Facebook algorithm will use the data to search for matching audience similar to your highest value customers. This way you can spend less targeting your highest value customers and achieve better campaign results.

A research study carried out by Frederick Reichheld of Bain & Company revealed that customer retention.  This means that when you retain your existing customers, you will increase your business profits. This is why you should spend more time to find out how to maximize your customer lifetime value.

In this article, you will learn five creative ways to use Customer Lifetime Value Custom Audiences to boost your Facebook Ads

1) Classic way

Every business focuses on how to get more customers and thus make more sales. The customer lifetime value indicates the value of your company. It enables you to know the net profit you can expect from each customer’s lifetime relationship with your company. You can use this information to make decisions that will help you to attract more customers that will help to grow your business.

The new Facebook Customer lifetime value custom audience tool will help you to specifically target your audience with Facebook ads based on their real value.

With this tool, you will discover more real customers with high value.  They will help in increasing your revenue and save you money because you will be targeting customers that will bring you the highest profit.

2) Lead Score

Every business struggles to get leads at the beginning. The leads will start coming in droves as you use the right lead generation methods. As your leads increases, you will need to separate the wheat from the chaff. The process is known as lead scoring.  Lead scoring is a way of categorizing and prioritizing your leads or prospects according to their value to your business. This information will enable you to target leads that are more valuable to you.

The truth is all leads are not equal. Some have a little interest in your company while others are ready to do business with you.  Leads scoring enables you to prioritize your prospects so that they can convert more.

With Facebook’s 2.13 billion monthly active users, 50 million business pages, it is becoming easier for business owners to generate quality leads with high scores. This is possible through the Facebook Customer Lifetime Value Custom Audiences. With this tool, you can instruct the Facebook algorithm to target the best leads with high lead scores from your list and search for similar audiences on Facebook that you can target with your Facebook ad campaign. This will increase the quality of your Facebook ad campaigns and help you to generate high quality leads in a better way than guessing.

3) Date of subscription

Building an email list is great. But that is half of the battle. The remaining half is in getting your subscribers to convert. But the thing is, for an average email list, 60% of all subscribers are inactive and 30% of your subscribers will change their email address annually. Inactive subscribers may not be interested anymore in your business.

So what do you do?

What you can do in this case is to use the new Facebook Customer lifetime value custom audiences to create Facebook ads that will target your newest subscribers.  They are still fresh and open to your offers.

Targeting your new subscribers with high customer lifetime value using Facebook ads will help to increase your conversion rate. This is because your email subscribers are people who are already interested in your business.

4) Age

Facebook’s 2.13 billion monthly active users consist of males and females of different age groups as shown below.

Facebook usage among key demographics
The truth is every business have different age ranges of buyer personas. This means that your product may not be designed for everyone. Once you know your high value customer age groups, the Facebook algorithm will search for a similar audience that you can target specifically with your ads. This will help to broaden the reach of your campaign and also boost your return on investment.

The age information is already available on users’ profiles on Facebook, so it is easy to target them based on their age.  The lowest age you can target is 13, while the maximum is 65.

Target audience Facebook Ads age

5) Repeated purchases

Customers who make purchases from you over and over again are repeat customers.  Repeat customers are very important to the success of any business. They cost less.  According to a survey, selling to a new prospective customer is 5% -20% whereas the probability of selling to an existing customer is 60%-70%.

Repeat purchases vs new customers

Customers are not the same. Some will buy once, others will come again and again.

Instead of calculating the value of the total spent on your shop, use the Lifetime value custom audience to reach people who might be frequent buyers and not single high-value customers. Facebook will help you find other potential customers who will come again and again to purchase from you.


Customers’ lifetime value is very important to the sustenance and growth of any business.

This means you are focusing on retaining customers to increase their purchasing levels. This helps you to save money and time that you would otherwise use in acquiring new customers. It  increases your sales. A study revealed that existing customers are 50% more likely to try new products and spend 31% more when compared to new customers.

The good news here is that you can create a Facebook ad with Customer lifetime value Custom Audience. You can target your high-value customers creatively based on their real value, Lead score, Date of subscription, Age and Repeated purchases.

The above five creative ways will help you to boost your Facebook ads and you will increase your conversion rate.

Download now the free Audience Creation Guide for Companies and Advertisers

Mark Cirillo

Try LeadsBridge now!