Revisit strategy & activations based on CLV for an Automotive industry leader
In a competitive environment where customers have multiple options for vehicles and services, it is crucial to understand and maximize the monetary value generated by individual customers over time, enabling effective marketing targeting, offer customization, and long-term profitability maximization.
What we did
Challenge
Integrating data from different sources (e.g., sales, marketing, customer service) to calculate the lifetime value can be complex
Moving from general to individual lifetime value estimation requires precise data analysis and modeling
Establishing a connection between historical behavior and future potential value demands sophisticated predictive modeling
Our approach
Client Segmentation
Segment customers based on a comprehensive set of characteristics LTV Calculation
Use statistical and machine learning models to accurately calculate the lifetime value of each customer segment Predictive Modelling to forecast future customer behaviour and lifetime value, incorporating factors such as customer churn, repeat purchases, and market trends
Outcome
Customer segmentation into 21 homogeneous groups of customers behavior and past expenditures.
Evaluate potential changes in each group's customers for individual Lifetime Value and profit margins.
Provide actionable recommendation on the marketing activation. Cleaned modelling flows maintained & updated by client
Ability to flag high potential clients from first purchase, and encourage high potential LTV behaviours to CRM and acquisition strategies
