Maximising Customer Lifetime Value (CLV) for a UK digital florist
Opportunity synopsis
Our client had reached a marketing stalemate and was increasingly frustrated that they could not identify the impact their commercial decisions were having on their bottom line.
Using leading causal inference measurement techniques we were able to help them understand the true impact of their marketing, pricing and promotional activities. We then further developed this approach to move from understanding the impact on single transaction to understanding how Customer Lifetime Value (CLV) was impacted and thus started to drive substantial bottom line returns.
Maximising CLV through better marketing, pricing and promotional decisions
Marketing, Pricing & Promotions optimisation
Established a roadmap of incrementality testing across key commercial activities
Established the causal impact they were having and built marketing, pricing and promotional elasticity curves
Recommended and helped implement more optimal marketing investment, pricing and promotional strategy
Single transaction → CLV impact
Moved to an approach that measured the impact of decisions on CLV impact as opposed to single transaction profit
Identified loss-making discount tacts and opportunities to invest more in key valuable introductory channels
Designed and embedded operating model to support cross-functional behavioural change
Outcomes
In CLV less Cost to Acquire and Retain Customer
+5%