For enterprise retailers, increasing Customer Lifetime Value (LTV) is the secret ingredient for lasting success.
Our 2024 Retail Media Pulse Report reveals that top-performing enterprises don’t just rely on multi-channel strategies; they focus on maximizing efficiency across those channels to improve LTV and ROI.
Multi-Channel Efficiency Drives Enterprise Success
The days of relying on a single retail media channel to reach customers are long gone. Enterprises are now using 5 - 6 channels on average to engage customers across various touchpoints.
But what truly sets successful enterprises apart is the level of integration and efficiency with which they manage these channels. In fact, 71% of enterprises satisfied with their retail media performance cite high levels of channel integration as a key success factor.
By managing these channels cohesively, and leveraging learnings from each platform to inform others, enterprises can improve the customer journey, drive higher LTV, and create more impactful campaigns.
How to Improve LTV Across Channels
To improve LTV, marketers must craft a full funnel strategy that encourages repeat engagement and builds a long-term customer relationship.
Understanding the benefits of each channel helps clarify their place in an extensive multi-channel retail media strategy.
Enterprises rank Search, Amazon, and Social as their most important platforms – and that's especially relevant for LTV.
- Paid Search ads are a great way to target high-intent customers. By targeting the right keywords, brands can consistently stay top of mind for customers at each stage of their shopping journey. This is especially powerful when driving both new and existing customers towards your own website, outside of the primary shopping marketplaces.
- Amazon advertising, on the other hand, meets customers where they shop. By choosing strategic placements to nurture and retarget previous customers towards a “Subscribe & Save” sign-up, it serves as an excellent way to generate predictable recurring revenue.
- Paid Social, finally, serves as a powerful channel for fostering ongoing engagement and brand loyalty. By retargeting users that previously engaged with your brand on social and creating personalized content that keeps the brand top of mind, these consistent touchpoints can help significantly enhance customer retention.
Each platform also provides its own variation of customer data – so breaking down data silos and viewing performance, shopper behavior, and more in a cohesive manner is what drives budget efficiency.
When you have a clear understanding of how your customers buy from you, you can make more efficient budget decisions.
By reducing the amount of ad dollars allocated to customers already familiar with your brand, and crafting more personalized and optimized ads for that audience, you can reallocate more ad spend to focus on acquiring net new customers to your business, creating a flywheel effect.
AI: The Competitive Advantage for Retail Media Efficiency and Performance
We found that 73% of enterprises plan to increase their investment in Paid Search, 66% in Amazon, and 59% in Paid Social YoY. This doesn't even consider our findings that 50% of marketers across all segments plan to increase their spend in Q4 2024.
With 2025 shaping up as one of the most competitive years yet in retail media – savvy marketers will need an advantage.
It’s unsurprising then that 91% of enterprises are planning to integrate AI into their retail media strategies.
By adopting AI, enterprises can not only optimize campaigns but also create internal efficiencies by reallocating human capital toward high-level decision-making, letting AI handle data analysis and targeting.
But we found a significant gap between excitement for AI – and marketers' satisfaction with the solutions and tools available within media channels today.
That’s exactly why over 5,300 brands leverage Quartile to streamline operations, enable your team to focus on strategic tasks – and let AI-based automation manage bidding, targeting, and campaign adjustments in real-time.
AI-powered solutions like Quartile allow brands to analyze vast amounts of data, identify trends, and automate real-time adjustments to improve performance. This data-driven approach is key for improving LTV.
To learn more about how AI and multi-channel integration are driving retail media success, download the 2024 Retail Media Pulse Report today.
Key Takeaways
- 71% of satisfied enterprises cite high levels of integration as a key to retail media success.
- AI adoption is essential, with 91% of enterprises planning to leverage AI for real-time optimization and improved performance.
- Boosting LTV and ROI requires a multi-channel strategy combined with AI-driven efficiency.
