Retina Go! Results
We have successfully predicted the individual-level Customer Lifetime Value (CLV) for your customers! Here's what we found:
Key Metrics (Feb 28, 2017 - Oct 23, 2020)
Median Total CLV
- Number of Customers Analyzed: 32,143
- Avg. value per customer: $437.49
- Avg. days between orders: 15.03
Why is predicted CLV important?
Predicted Customer Lifetime Value captures the entirety of your customers' expected future behavior with your brand. Given that the typical LTV of your customers is $360, your cost of acquisition (CAC) should be no more than 1/3 of that amount, adjusted for costs.
How did we compute this?
We looked at your orders and customer buying patterns and built a customer behavior forecast at the individual level.
Your data had 32,143 customers over the period of Feb 28, 2017 to Oct 24, 2018 with 136,929 total transactions.
How can you use this data?
Acquisition Strategy: Use this with Value Based Lookalike tools to reduce your Customer Acquisition Cost. We have seen our customers reduce CAC by 17-25% with this strategy.
Retention Strategy: Use the segments and notifications to engage your customers based on their predicted segments: Champions, At Risk, Lost, etc.
This graph shows changes in your customers' median and average (mean) CLV over time.
- Movement in median CLV may indicate changes in the buying behavior of your customer base at large.
- Changes in the average CLV may better reflect shifts in the buying behaviors of outlier spenders.
- If these lines are close together, then buying behavior is similar across your customer base.
This chart shows how your customers are grouped by their probability of being active vs their CLV.
Ideally, most of your customers are up and to the right.
These charts indicate how many users in each segment have a predicted CLV at each point along the horizontal axis. The higher the curve, the more customers have a predicted CLV equal to that amount.
In Retina Go, we define:
- A lapsed customer has less than a 10% chance of transacting in the next year.
- An at-risk customer has between a 10% and 90% chance of transacting.
- An active customer has at least a 90% chance of making a new transaction in the next year.
- A high CLV customer has a predicted CLV at or above the 80th percentile of your customer base.
We have placed your customers into behavioral segments which are more advanced than traditional RFM segments. Here are some recommendations:
Description: These are your most loyal customers who tend to come back often and spend the most.
Definition: Active High CLV Customers
Number of Customers: 482 (1.5%)
Reward them. Can be early adopters for new products. Will promote your brand. Upsell higher value products. Ask for reviews. Engage them.
Description: These customers have done a few purchases to get to know your products but are exhibiting a High CLV behavior yet.
Definition: Active Low CLV Customers
Number of Customers: 1,961 (6.1%)
Offer membership / loyalty program, recommend other products. If recent, provide on-boarding support, give them early success, start building relationships.
Can't Lose Them
Description: These customers are on the verge of lapsing based on their buying behavior.
Definition: At Risk High CLV Customers
Number of Customers: 804 (2.5%)
Send personalized notifications or emails to reconnect, offer renewals, provide helpful resources. Win them back via renewals or newer products, don't lose them to competition, talk to them.
Lost High Value
Description: Previous High CLV customers who have lapsed and are not likely to come back without marketing intervention.
Definition: Lapsed High CLV Customers
Number of Customers: 5,175 (16.1%)
Test potential revival campaigns to engage them for high AOV products. Revive interest with reach out campaign, rebuild brand equity.
Access your per-customer CLV data* and use it for your own analysis and customer segmentationcloud_download Download
* limited to 30k customers (randomly sampled) for Retina Go
trending_up Optimized Facebook Audiences
Retina's CLV-based Facebook Audiences reduce your CAC to LTV ratio by using better targeting to reduce costs and increase the CLV of the new customers you acquire.
Manually download your Value-Based Audience Seed and upload it to your Facebook Asset Library