Short answer: On 22 October Google announced three updates to customer lifecycle goals in Google Ads. First, percentage multipliers are leaving beta, so you can value a new customer at, for example, 1.2x the order value instead of adding a fixed amount. Second, New Customer High Value Mode now works in Shopping campaigns. Third, three retention modes (Re-engagement, Loyalty and Retention Only) are rolling out for Performance Max, Search and Shopping. All of them roll out during October. Before you switch anything on, check that your customer lists are accurate and agree how you will read ROAS, because these settings change the conversion values that Smart Bidding sees.
What customer lifecycle goals do
Customer lifecycle goals tell Google Ads that some conversions are worth more than others. Until now, the main option was to add a fixed extra value for a new customer, for example $20 on top of every first purchase. Smart Bidding then bids harder to win new customers.
The problem is that a fixed amount does not fit stores with a wide price range. A $20 bonus is a 40% boost on a $50 order but only a 2% boost on a $1,000 order.
Change 1: percentage multipliers
You can now choose Multiply by instead of Increase by in the customer acquisition setting.
| Order value | Fixed +$20 | 1.2x multiplier |
|---|---|---|
| $50 | $70 | $60 |
| $100 | $120 | $120 |
| $1,000 | $1,020 | $1,200 |
- Range reported by Google: 1.1x to 5x
- Campaign types: Search, Shopping, Performance Max and Demand Gen
- Also available in Search Ads 360
- Rolling out globally in October
A multiplier keeps the boost in proportion to the cart, so bidding stays balanced across cheap and expensive products.
Change 2: High Value Mode in Shopping
New Customer High Value Mode bids higher on new customers who are likely to spend more, while keeping your normal reach. It was already available in Search and Performance Max. It now extends to Shopping campaigns.
Change 3: three retention modes
| Mode | What it does | Keeps normal reach |
|---|---|---|
| Re-engagement | Bids higher for customers who have not bought for a while | Yes |
| Loyalty | Uses loyalty status for custom messages and member offers | Yes |
| Retention Only | Shows ads only to the existing customer segments you choose | No |
These modes roll out for Performance Max, Search and Shopping. Use the labels you see in your own account, because some names changed during the beta.
What you need before you start
- Accurate customer lists. Lifecycle goals depend on Google knowing who is new and who is returning. Keep Customer Match lists or tag based purchaser lists up to date in Audience manager.
- Working conversion tracking with real order values, ideally with enhanced conversions switched on.
- A loyalty attribute in Merchant Center if you plan to use Loyalty mode, plus member pricing ready to show.
- An agreement on reporting. Multipliers inflate reported conversion value. Compare with Original conversion value so you can still see true revenue.
How to test it safely
- Pick one campaign with steady volume. Do not change every campaign at once.
- If you use a fixed new customer value today, convert it to the closest multiplier. For a $100 average order with a $20 bonus, that is about 1.2x.
- Leave the campaign for two to three weeks so Smart Bidding can learn.
- Judge the test on new customers acquired and true revenue, not on reported ROAS alone.
- For lapsed buyers, start with Re-engagement, which keeps normal reach. Use Retention Only in a separate campaign if you want full control.
With Black Friday close, make any test now or wait until after the peak. Changing bidding values in the middle of the sale is risky.
Who should use these updates
- eCommerce stores with a wide price range: multipliers are the most useful change here.
- Brands with a loyalty program: Loyalty mode lets you show member offers in ads.
- Stores with many one time buyers: Re-engagement can bring them back without a separate campaign.
- Small accounts with few conversions: keep it simple. Fix tracking and customer lists first.
Frequently asked questions
What are customer lifecycle goals in Google Ads?
What is a new customer multiplier?
Which campaigns support the new options?
Will my ROAS change?
Do I need Customer Match for this?
Who can set up customer lifecycle goals for my store?
Want help setting this up?
I can check your customer lists and conversion values and test multipliers in one campaign before the holiday peak. See my Google Ads management and Google Shopping services, or request a free ads audit. Also read Google Ads Automated Promotions, another October change for online stores.