Predictive Lifetime Value helped E-commerce Aggregator see 17% lift in Average Order Size
Customer Lifetime Value is the total of all the financial profit a customer brings in for the firm, calculated from the existing period to the future (revenues - costs incurred). Employing CLV, managers can derive actionable information that enables them to design strategies for customers that really matter in the long-run rather than focusing solely on increasing short-term profits.
The Client: Our client is prestigious mobile application which aggregates offers from top e-commerce websites and provides suggestions of product purchases to their customers.
The Problem: The marketing team was communicating generic offers to the whole customer base. This led to an ineffective campaign strategy because lots of customers were getting offers they were not interested in.
This was also damaging customer loyalty since they were unable to create a loyal customer based who can depend on their application for their purchases.
The Solution: Using 'Marketing Intelligence Assistant', our client was able to predict the lifetime value of each customer i.e. how much profit they are going to generate in future.
This helped marketing and operations team to prioritise the best customers over others. They were able to cater their best segments which were generating maximum returns for their business.
Not only their AOV increased by 17% for each marketing campaign, but this also helped them create a loyal base of customer who now looks forward to their personalised offer from our client every week.
- 17% increase in AOV and 38% increase in repeat purchases
- ~ 70 million transactions records cleaned, processed and integrated for > 600K users
- 81.33% prediction accuracy for individual customers & 92.54% for most loyal users