Most companies have a number of customer avatars that they target with their product or service. Narrowing them down to the most profitable ones is an effective way to get the most return on ad spend ( ROAS ). Consider a protein powder brand with the following customer avatars:
People start doing sports.
Those who want to lose weight.
Dedicated weightlifters who have been training for years.
A brand may have ios database a hard time achieving a positive ROAS when targeting the first two avatars because of their lower lifetime value. These people may not continue to buy the product after the initial motivation wears off. But the third customer profile can be extremely profitable, as weightlifters will buy the powder for years. Of course, this is just an example . A company may find that the initial enthusiasm of the first two groups results in them having a higher average order value, making them highly profitable. You can learn more about this marketing strategy in Episode 283 of the Perpetual Traffic podcast.
Choose the most profitable customer avatars
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rifathasan
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