Marketing firm

Overview

This is one of the marketing service providers whose client wanted to understand the Customer lifetime value, if at all there are any loyal customers the client wanted to reward them for staying with them so far. Also, provide them with further discounts along the way.

Challenge

The customer lifetime value prediction was quire challenging as it included the data which needed to be combined like marketing, machine learning, statistics and provide insights. None in the marketing service provider firm had the knowledge to something like that.

Implementation

The data analysts started with collecting the data from all the departments. The main fields collected were -Invoice No, Product Item code, Description, Quantity, Invoice date, Unit price, Customer ID and their location.

To predict and calculate the CLV, the estimate to frequency, recency and total amount of users were identified making it a pattern. Applying and evaluating the linear regression model post the data preparation the CLV was found as a metric helping them to boost their revenue by 17%.

Benefits Achieved

• Revenue boost by 17%
• Helped clients scale up by 4%